Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-01-01
PROSPEROUS YEAR.
Continued from Page One.)

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 it has not reached the consum-
er. 1t is represented somewhere by
borrowed money and the delay in ship
mcnt extends the loan. The same is
true of all material on it's way to fac
tories"
Cooperation between the commercial
banks Of the country the secretary
finds to be impossible because the
Sherman antitrust law forbiGs it.
Instead" he says, 1--WE have APP
proximately 10000 institutions engaged
in commercial banking, each a law I'M
to itself 50 long as it does not violate
statutory requirements with respect to
investment 2nd reserve. AS a natural
and IL .avoida bic result no combined ef .
fort is innd' in midsummer to pro-
vits' MI ! =, ~ for the strain in
cVlt .h,' u.,! tn" return Of business
activity incident 10 tic fall and winter
months. tIder ou: present system the
only possible contraction during the
summer and the only possible provision
for the fall, is accomplished by the sec
rotary of the treasury withdrawing
government deposits from the banks
when these 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 resultant crash avertel.
unfortunately the banks are not the
only nor the principal sufferers from con-
taSious financial Diseases Generally they
are able la protect themselves: for ii
thcir loans have been well made they
have only 10 refuse additional accommO-
q" tons and await results. If 4 crash
should come, from Wha:cvcr cause, facto-
ricS VIII close their doors, the weekly
payroll will cease ana the people least
responsible for conditions will be the ones
Oh whom these lessons of sclf-reliance
will fail with sad(lest effect
In conclusion Secretary Shaw says:
''It is urged against the present policy
| that it 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.
| '''''' - pt'ulC iHS
! istratiOn. For years the name Of a very
! worthy President, a man with high
ideals and lofty patriotism, with well
| night reproach because mis- administra.
! ton was accompanied with widespread
| financial disaster If an administra ion
| is to be held responsible for the financial
| health of the people the medicine chest
ana the surgeons kit should not be sunk
| in the sea.
'All authority is subject to abuse. Nc
| voice was raised against the rate bill be-
cause it permits one man through an
| interstate commerce commission remov.
! able at pleasure and appointive in vaca.
ton at Will. to fix arbitrarily if he
! pleases, subject to as yet undetermined
; jurisdiction by the courts. the freight
rate on every product of Sc 600 900 people
1t is presumed-yeS it is known-that the
| President responsible to himself but tC
his party that has made him, will so &C.
| Quit himself if within his power, as tc
Nindicate the choice Of that party and
| of tho people who elected him Admit
/ tcdly our present monetary system is de-
| foctive, but the assumption that one car
! be submitted that will be perfect is some.
what violent"