The Washington herald., 1907-11-04
SETS FORTH REMEDY
Gov. CumminS, of Iowa,
Makes Suggestions.
AMEND THE CONSTITUTION
Iowa Executive Gives Views Anent
the Recent Financial Disturbance.
Says Trouble Resulted from Over
capitalization and Speculation of
Gamblers on COuntry's Exchange.

Advocating a constitutional amendment
to permit national incorporation, holding
the financial world and not President
Roosevelt responsible for the pending
financial depression, and rejecting the SEN
timent of his and other Western States
for Mr.. Roosevelts reelection, Gov. Al
bert b. Cumnlins, of Iowa, has come 70
Washington on an errand the character
of which he will not reveal He will see
the President, and expects to leave here
tonight. He left Des Moines Friday
night. without announcing his destination.
and Iowans here were surprised TO know
he was In town He said he came with
out the knowledge of the President
When asked his opinion Of the financial
situation. Gov Cummins said:
Cause of Trouble.
My opinion is that overcapitallzation
is The proximate cause of the trouble
The issuance Of stocks and bonds with
out any real foundation. the effort OF
fnanciers, or gamblers, as prefer TO call
them. TO maintain them at points they can
not permanently hold. This, coupled with
spectators gambling in these stocks on
various exchanges OF the country has
brought about the present situation. Tn
illegitimate stocks go down. as so down.
they must, and sympathetically they
carry down with them legitimate stocks
founded on real values The remedy is
governmental supervision OF capitaliza-
ton and the restriction OF both stocks
and bonds issued by corporations 10 the
honest worth of the property which they
represent, together with prohibition OF
gambling in such securities. or IN any Sc
curities, for that matter
I'VE ought TO limit purchases so they
would not exceed the fair ability OF pur-
chasers to pay for them, and sales TO the
ownership of seller. This would obviate
marginal speculation.
Il believe all corporations doing an in
terstate business should be organized by
the government But l don't wish 70 be
understood as believing this can be done
under present conditions. We need an
amendment TO the Constitution before we
can reach the evil The country. I be
lieve, is ready for such an amendment,
although it would require a campaign 20
obtain the ratification by three-fourths Of
the States. l do not understand the
Southern States which have shown them
selves opposed TO certain extension OF
Federal power will find such an amend
ment Objectionable, They are contending
for domestic control and regulation not OF
the creation Of corporations, but Of the
manner Of their conduct Of local or inter
state business. Such an amendment as
is required Will not change conditions, eX-
ceDt as corporations are organized in the
States which seek 70 regulate them
Some Central Power.
1T is impossible to obtain effective
control Of corporations except through
some central power. If the States
would enact uniform laws regarding cap
italization, it could be done, but this uni
formity we cannot obtain, for some
States remain attracted by the large ices
which they receive by reason OF the
laxity of their laws, and others are DON'T
mated by the corporations"
DO you believe that the President s
occasioning the present financial crisis?' %
Il think I have already shown what 1
believe is the cause. The Presidents at
'titude toward corporations and other
large interests is in no wise responsible
for the situation. and I earnestly hope
he will not change his course one hairs
breadth. The time 20 advocate a remedy
is when the evil is the most apparent If
the cause was not unwarranted, interfer-
ence by the President with business
should be criticised. but I believe the
cause is what l say, and, therefore. the
President should be commended"