Semi-weekly herald., 1907-12-05

wanted in legitimate trade. This plar
would not permit the issue of cur
rency to give banks additional profits
but to meet the emergency presented
by times of stringency.
/ Il do not say that this is the right
system. l only advance Il 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 posi-
bility OF discrimination and favorit-
ism. Such 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
seasons of the year. and its accumu-
iation at New York tempts bankers
to lend 1t at low rates Tor specula-
| tive purposes; whereas at other times
when the crops are being moved there
IS urgent need for large but tenn
/ porary increase in the currency sup
| ply. 1t must never be forgotten that
/ this question concerns business men
| generally quite as much as bankers;
| especially is this true of stockmen.
| farmers. and business men in the
west; for at present at certain sea
sons Of the year the difference in
| interest rates between the east and
| west is from 6 to 10 per cent. where.
as in Canada the corresponding diff
ference is nut per cent Any plan
must. of course. guard the interests
| Of western and southern bankers as
! 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"
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 he made for
an emergency currency. The emer-
gency issue should, of course. be
made with an effective guaranty. and
upon conditions carefully prescribed
by the government. Such emergency
issue must be based On adequate Sc
curities approved by the government,
and must be issued under a heavy
tax. This would permit currency be
ing issued when the demand for It
was urgent, while securing its re-
is worth investigating to determine
whether officers and directors of ma
tional banks should ever he allowed
to loan to themselves. Trust com
panies should he subject to the same
supervision as banks; legislation to
this effect should be enacted for the
District of Columbia and the terri.
tories
Yet we must also remember that
even the wisest legislation on the
subject can only accomplish GER
tain amount. No legislation can by
any possibility guarantee The business
community against the results of
speculative folly any more than 1t can
guarantee an individual against the
results of his extravaganza. When
an individual mortgages his house to
buy an automobile he invites dis
aster; and when wealthy men. or
men who pose as such, or are un
scrupulously or foolishly eager to be-
come such. indulge In reckless specu
lation-especially if 1t is accompanied
by dishonesty-they ieopardize not
only their own future bu- the whole
community to panic aud distress. !
Enforcement of the LAVA few
years ago there was loud complaint
that the law could not be invoked
against wealthy offenders. There Is
NO such complaint now. The course
- NV AN Paii hHN'iN VI Jto'i''
the last few years has been such as
to make il evident that no man stands
above the law that no corporation is
SO wealthy that it can not be held to
account. The department Of justice
has been as prompt to proceed against
the wealthiest malefactor whose
crime was one of greed and cunning
as to proceed against the agitator
who invites to brutal violence. Ev
.erything that can be done under the
existing law and with the existing
state Of public opinion, which so pro
foundly Influences both the courts
and juries, has been done. But the
Laws themselves need st. engineering
in more than one important point;
they should be made more definite,
so that no honest man can be led
unwittingly to break them. and so
tnat the real wrongdoer can be read
lily pushed.
Moreover there must be the public
opinion back OF the laws OF the laws
themselves will be of no avail. At
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