The Denison review. [volume] (Denison, Iowa) 1867-current, 1907-12-04
anupolnts or the FARMER ana the merchant
no less than from the standpoints of the
city banker and the country banker
Greater Elasticity in
Currency is Urqed.

city banker and the country banker.''
Greater Elasticity in
Currency Is Urged.
I again urge on the Congress the need
of immediate attention to this matter.
We need greater elasticity in our cur
rency; provided, of course, that we recog-
nize the even greater need of safe and
secure currency. There must always be
the most rigid examination by the ma
tional authorities. Provision should be
made for an emergency currency The
emergency issue should, of course be
made with an effective guaranty and up
on conditions carefully prescribed by the
government. Such emergency issue must
be based on adequate securities approved
by the government, and must be issued
under heavy tax. This would permit
currency being issued when the demand
for it was urgent, while securing it's re-
trement a the demand fell off. 1t is.
worth investigating to determine whether
officers and directors of national banks
should ever be allowed to loan to them
selves. Trust companies should be sub
ject to the same supervision as banks;
legislation to this effect should be en-
acted for the District of Columbia and
the territories.
Yet we must also remember that even
the wisest legislation on the subject can
only accomplish certain amount. No
legislation can by any possibility guar
antee the business community against the
results of speculative folly any more than
it can guarantee an individual against the
results of his extravaganza. When an in
dividual mortgages his house to buy an
automobile he invites disaster; and when
wealthy men. or men who pose as such,
or are unscrupulouSly or foOlishly eager
to become such, indulge in reckless spec
ulation-especially if it is accompanied by
dishonesty-they jeopardize not only their
own future but the future of all their in
nocent fellow-citizens, for they expose
the whole business community to panic
and distress.
Tariff Responsible for
Good Financial Condition,
The income account of the nation is In
! a most satisfactory condition. For the
six fiscal years ending with the first of
July last, the total expenditures and rev.
enues of the national government ex-
| elusive of the postal revenues and ex-
| penditures, were, in round numbers
revenues. 50, 4G5,OO0,0O0. and Expenditures,
| SO, 275, 100000. The net excess of income
over expenditures, including in the latter
| the fifty millions expended for the Pana-
ma canal, was Sl90000,C00 for the six years.
an average of about $31.G00,U0O a year
| This represents an approximation be-
| tween income md outgo which it would
| be hard to Improve. The satisfactory
working of the present tariff law has
| been chiefly responsible for this exce3ent
| showing. Nevertheless there is an evil
dent and constantly growing feeling
among our people 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 widesprea
| Industrial disaster. In other words, the
! o. - w
not with wisdom be changed. Rut in
| country of such phenomenal growth as
ours it is probably we'll that every dozen
| years or so the tariff laws should be
carefully scrutinized as to see that
no excessive or improper benefits are con-
ferred thereby. that proper revenue -is
/ provided and that our foreign trade is
/ encouraged. There must always be a
| minimum tariff which will not only
| allow for the collection of an ample
revenue but which will at least make
i good the difference in cost of production
here and abroad; that is. the difference in
/ the labor cost here and abroad. for the
well-being of the wage-worker must ever
| be a cardinal point of American policy.
/ The question should be approached pure
| ly from business standpoint; both the
| time and the manner of the change being
such as to arouse the minimum of agi-
! tation and disturbance in the business
/ world. and TO give the least play for
selfish and fractional motives. The sole
/ consideration should be to see that the
sum total of changes represent the pub
| lie good. This means that the subject
can not with wisdom be dealt with in the
I year preceding a presidential election, be-
| cause as a matter of fact experience has
| conclusivey shown that at such a time it
| is impossible to get men to treat 1t from
the standpoint of the public good. In my
judgment the wise time to deal with the
| ms tay is election
Income and inheritance
Tax Is Favored.
When our tax laws 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 1t Is a
| difficult tax to administer in it's practi-
| cal working. and great care would have
| to be exercised to see that it was not
y evaded by the very men whom it was
most desirable to have taxed. for If so
I evaded it would. of course. be worse
' than no tax at all; as the least, desira-
BILE of all taxes is the tax Which bears
heavily upon the honest as compared
I
a graduated 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 SUI
! preme court will declare constitutional.
4 TIE Inheritance tax, however, is both
| far better method of taxation, and far
! more important for the purpose of hay
/ ing the fortunes of the country bear in
proportion to their increase in size Il
| corresponding increase and burden of
taxation. The government has tic ab-
solute right to decide as to the terms
| upon which man shall receive the be-
| quest or devise from another ana this
point in the devolution of property is
especially appropriate for the IMPOSE
! ton of tax. Laws imposing such
! taxes have repeatedly been placed upon
! the national statute books and re-
| peatedly declared constitutional by tho
! courts; and these laws contained the
progressive principle, that is, after Il
certain amount is reached the beuuest
| or gift. in life or DEATH is increasingly
| burdened and the rate of taxation is
| increased in proportion to the rcmo,e-
ness of blood ~ the man receiving the