The news-democrat. (Providence, R.I.) 1906-1909, 1907-12-03

the public is accompanied by an equal
benefit to the reputable packing estab-
Ilshments. The latter are better OF
under the law than they were without
II. The benefit to interstate common
carriers and business concerns from
the legislation advocate would be
equally marked.
Poor Food Law.
Incidentally in the passage Of the
pure food law the action Of the vari-
Gus state food and dairy commission
ers showed in striking fashion how
much good for the whole people re.
suits from the hearty cooperation OF
the federal and state officials in secur-
ing a given reform. 1t Is primarily
to the action of these state commits
sioners that we owe the enactment of
this law, for they aroused the people
first to demand the enactment and en-
forcement Of state laws on the subject
and then the enactment of the federal
law, without which the state laws
were largely ineffective. There must
be the closest cooperation between the
national and state governments In ad-
ministering these laws.
Currency.
In my message TO the congress
year ago spoke as follows of the cur
rency:
IL especially call your attention to
the condition of our currency laws.
The national bank act has ably served
great purpose in aiding the enor-
nous business development Of the
country, and within ten years there
has been an increase In circulation per
capita from S21.41 to $33.0S. For sew
eral years evidence has been accumu-
lating that additional legislation Is
needed. The recurrence Of each crop
season emphasizes the defects of the
present laws. There must soon be a
revision of them, because TO leave them
as they are means to incur liability
of business disaster. Since your body
adjourned there has been fuctuation
in the interest OH call money from .
per cent TO 80 per cent. and the fuc-
tuation was even greater during the
preceding six months. The secretary
Of the treasury had TO step in and by
wise action put stop to the, most vio-
lent period of oscillation. Even worse
than such fluctuations are the advance
in commercial rates and the uncertainty
felt in the sufiiciency Of credit even at
serl, tal ;,,xz
suffer during each crop period Ex-
cessive rates for call money In New
York attract money from the interior
banks into the speculative field. This
depletes the fund that would other
wise be available for commercial uses,
and commercial borrowers are forced
TO pay abnormal rates, SO that each
fall tax in the shape of increased in
terest charges is placed on the whole
commerce of the country.
The mere statement of these facts
shows that our present system Is seri-
ously defective. There is need OF
change. Unfortunately, however, many
of the proposed changes must be ruled
from consideration because they are
complicated, are not easy of compre-
tension and tend to disturb existing
rights and interests. We must also
rule out any plan which would materi-
ally impair the value of the United
States per cent bonds now pledged
to secure circulation. the issue of
which was made under conditions pc
culiarly creditabie TO the treasury. I
do not press any especial plan. Vari-
Gus plans have recently been proposed
by expert committees of bankers.
Among the plans which are possibly
feasible and which certainly should re-
ceive your consideration is that repeat
edly brought to your attention by the
present secretary Of the treasury. the
essential features of which have been
approved by many prominent bankers
and business men. According to this
plan, national banks should be per-
mitted to issue a specified proportion
OF their capital i'm notes Of n given
kind, the issue to be taxed at so high
a rate as to drive the notes back when
not wanted in legitimate trade. This
pam NOulu uOt permit tht iSouN VI
currency to give banks additional
profits, but to meet the emergency pre-
sented by times of stringency.
II do not say that this is the right
system. l only advance 1t to empha.
size my belief that there is need for
the adoption of some system which
shall be automatic and open to all
sound banks, so as to avoid all possi-
bility of discrimination and favorit-
ism Such "A plan would tend to pre-
vent the spasms of high money and
speculation which now obtain in the
New York market, for at present there
is too much currency at certain sea-
sons Of the year, and its accumulation
at New York tempts bankers 10 lend
it Mt low rates for speculative pur-
poses. whereas at other times when
the crops are being moved there is
urgent need for large but temporary
increase in the currency supply. 1t
must never be forgotten that this cues.
tion concerns business men generally