The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1907-01-01

real estates as in options and ram=!ns
or stocks and bonds.
"ItNs-idle to complain of the newt
able he continued. 1.-THE spirit of
+ speculation is among us and, like the
drink habit, those most addicted are
frequently the loudest in denunciation.
I It ill-beoomes the real estate snecula-
| tor, to deery every other manifestation
OF desire to get rich quick. The epithet
black banded between pot and kettle
+, is never instructive, and just now it is
not even entertaining"
The effect of the present car short
age on the money market also is allud-
ed to. The secretary says:
"a lar9er crop Of cotton than usual
and an unprecedented yield of cereals,
fruits and every other agricultural
product has flleh grane.!es and ware
houses to oTereowing and congested
every important railway. A few years
ago the freight cars of the country
averagey forty miles per day, but ow-
ing to the present congested condition
and insufficiertt terminal facilities and
factory sidings4 they now average but
twenty-five miles a day.
I'm the absence of more trackage
| and increased terminal facilities an in
! crease in the number of cars Increases
congestion and fails to afford adequate
relief. Non-perishable freight is shift
ed on side tracks to make room for
that which is more important. This
delayed freight. however, is owned by
some one and some ones money is
thus tied up. The producer has sold it
though Il has not reached the consum-
er. 1t is represented somewhere by
borrowed money and the delay in ship
ment extends the loan. The same is
true Of all material on its way to Eac-
to..as,n
Cooperation between the CONNER
cial banks Of the country the secretary
says, to be impossible becaue the Sher-
| man antitrust law forbds it, Tn
stead" he says, I'VE have approx
mately twenty thousand institutions
engaged in commercial banking each
a law unto itself 50 long as 1t does not
violate statutory requirements with re-
s2ect to investments and reserve. AS
a natural and unavoidable result no
combined effort is made in mid-sum-
mer to provide ample reserve for the
train inevitable upon the return Of
business activity incident to the fall
and winter months. Under our cres-
ent system the only possible contrac-
ton during the summer and the only
/ possible proviion for the fall, is ac-
comolished By the secretary of the
treasury Withdrawing government de-
posits from the banks when there
funds are not needed and restoring
them TO the channels. of trade as The
needs of business require, BY keeping
taut rein wild speculation may be
prevented and in most instances a re-
sulta9t crash averted.
Unfortunately, the banks are not the
only nor the principal sufferers from
contagious financial diseases. General
" they are able to protect themselves,
| for IL their loans have been well made
they have only TO refuse additional ac-
commodatons and await results If a
crash should come from whatever
cause, factorls will eclose their doors,
the weekly pay roll will cease, and the
people least responsible for conditions
win be the ones on whom this lesson
of self-relance will fall with saddest eff
feet"
IN conclusion, Secretary Shaw says:
1T is urged against the present policy
! that 1t places too much power and au-
thority in one man. 1t does not place
power or authority with one man The
/ responsibility rests with an administra-
! ton. A financial panic ruins any adj
minlstration For years the name Of a
/ verey worthy president, man with
i high ideals and lofty patriotism was
well nigh a reproach because his ad-
ministration was accompanied with
| widespread financial disaster II an ad-
I ministration is to be held responsible
for thu financial hyalth of the people,
the md8'cine chest and the surgeons
kit sho6ld not be sunk in the sen.
IAN authority Is subject to abuse
| No voice was raised against the rate
bill because 1t permits one man through
an interstate commerce commission re-
movable at pleasure and appointive in
vacation at will to fix arbitrarily, If he
pleases, subject to as yet undermined
jurisdiction by the courts, the freight
rate on every product of SO,0OO,OOO Of
people 1t is presumed-yes, It is
known-that president responsible not
to himself but to the party that has
made him will 80 acquit himself, II
within his power, as to Vindlcata the
choice Of that party and of the people
who elected him, Admittedly our pres
ent monetary system is defective, but
the assumption that one can be sub
mitted that will be perfect is somewhat