Woodruff County news. [volume] (McCrory, Ark.) 1901-1910, 1907-12-05

nit the issue of currency to give banks
additional profits, but to meet the emer-
gency presented by times of stringancy.
1 do not say that this is the right sys-
tenn. l only advance it to emphasize
my belief that there is need for the adop-
ton of some system which shall be au-
tomato and open to all sound banks,
so as to avoid all possibility of discrm-
ination and favoritism. Such a plan
would tend to prevent the spasms of high
money and speculation which now OBJ
tain in the New York market; for at
present there is too much currency at
certain seasons of the year. and it's ac-
emulation at New York tempts bankers
! to lend 1t at low rates for speculative
purposes whereas at other times when
the crops are being moved there is ur-
gent need for large but temporary in
crease in the currency supply. 1t must
never be forgotten that this question
concerns business men generally quite
as much as bankers; especially is this
true of stockmen, farmers arc business
men in the west for at present at certain
seasons of the year the difference in in
terest rates between the east and west
is from six to ten per cent, whereas in
Canada the corresponding difference is
but two per cent. Any plan must, of
course, guard the interests of western
and southern bankers carefully as it
guards the interests of New York or
Chicago bankers, and must be drawn
from the StandpointS of the farmer and
the merchant no less than from the
standpoints of the city banker and the
country banker"
Repeats RecoMmen datiOns.
The president continues:
II again urge on the congress the
need of immediate attention to this
matter We need a greater elasticity
in our currency; provided of course,
that we recognize the even greater
| need of a safe and secure currency.
There must always be the most rigid
examination by the national authori-
ties. Provision should be made for an
emergency currency The emergency
issue should. of course. be made with
an effective guaranty, and upon eondi-
tons carefully prescribed by the gov
eminent. Such emergency issue must
be based on adequate securities APP
proved by the government, and must
be issued under a heavy tax. This
would permit currency being issued
when the demand for it was urgent,
while securing it's retirement as the
demand fell off 1t is worth investi-
eating to determine whether officers
and directors of national banks should
ever be allowed to loan to themselves.
Trust companies should be subject to
the same supervision as banks; legisla-
ton to this effect should be enacted for
the District of Columbia and the terri
tories
Not Time for Tariff Discussion.
On the subject of the tariff the presi-
dent declares himself in favor of post
poning all consideration of the ques-
ton until after the presidential cleo
ton. He says:
1.-The income account of the nation is
in most satisfactory condition. For
the six fiscal years ending with the
first of July last the total expenditures
and revenues of the national govern
ment, exclusive of the postal revenues
and expenditures, were in round num-
bers, revenues, So, 400 900, 000 and ex-
penditures, s3,275,0O0. The net ex-
cess of income over expenditures, in
Guiding in the latter the fifty millions
expended for the Panama canal, was
$3.50 900 for the six years, an
average of about 100000 a year This
represents an approximation between in
come and outgo which it would be hard
to improve. The satisfactory working of
the present tariff law has been chiefly
responsible for this excellent showing
Nevertheless, there is evident and con-
stantly growing feeling among our peo-
pie that the time is rapidly approaching
when our system of revenue legislation
must be revised.
This country is definitely committed
to the protective system and any effort
to uproot it could not but cause wide
spread industrial disaster. In other
words, the principle of the present tar
| iff law could not with wisdom be
changed. But in a country of such
phenomenal growth as ours it is prob
ably well that every dozen years or so
the tariff laws should be carefully
scrutinized so as to see that no eX-
cesSiVe or improper benefits are con-
ferred thereby that proper revenue, is
provided, and that our foreign trade is
encoura ged. There must always be as
a minimum a tariff which will not only
allow for the collection of an ample
revenue bat which will at least make
good the difference in cost of produc-
ton here and abroad; that is, the diff
ference in the labor cost here and
abroad, for the well-beng of the wage
worker must ever be a cardinal point
of American policy. The sole consider
alton should be to see that the sum
total of changes represent the public
good. This means that the subject can
not with wisdom be dealt with in the
year preceding a presidential election,
because as a matter of fact experience
has conclusively shown that at such a.
time it is impossible to get men to
treat it from the standpoint of the
public good In my judgment the wise
time to deal with the matter is immedi-
ately after such election
Income and Inheritance Tax.
There has been no change in the
mind of the president concerning the
advisa bility. of an income tax and an
inheritance tax. In the message he
says:
when our tax taws are revised the
question of an income tax and an in
heritance tax should receive the care
full attention of our legislators. In my
Judgment both of these taxes should be
part of our system of federal taxation.
/ speak diffidently about the income tax
because one scheme for an income tax
was declared unconstitutional by the
supreme court while in addition it is
a difficult tax to administer in it's prac-
teal working. Nevertheless, grad
uated income tax of the proper type
would be desirable feature of federal
taxation, and it is to be hoped that one
may be devised which the supreme
court will declare constitutional. The
Inheritance tax, however, is both a far
better method of taxation. and far more
important for the purpose of having
the fortunes of the country bear in
pro portion to their increase in size a
corresponding increase and burden of
taxation. The government has the abb
co1,1+a riobt 70 decide RI tha terms