The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-12-05
[specIal 70 the pvenlng star.l


Especial to the Evening start
WASHINGTON. Dec. 5.-George b. Cor
telyou, Secretary of the Treasury. sees
nothing seriously apprehensive in the re-
cent financial depression. aud believes that
from it many good lessons may be learned.
He that Congress enact legis-
lation enabling the government to more
adequately ON to the relief of strained
financial situations IN future.
He recites the story Of the trouble in it's
relation to the Federal treasury. He be-
gan, he says. OH August Is, to ma Ike SUBJ
~stantial weekly deposits in banks through
out the agricultural sections, with the pur-
pose oe facilitating the movement Of the
crops in view.
Notwithstanding this measure, - he says.
'there was a constantly Increasing strin-
geney in the monetary centres, which Gull
minated In the forced suspensions OF sew
eral important institutions"
As the crisis approached, he tells OF the
efforts OF the department TO give such re-
lief as was In its power, transferring with
in four days the sum of S35, 900, 1000 to vari-
GUS banks, accepting as security such mu-
nicipal and railroad securities as are ac-
ceptable by the savings banks under the
laws of New Jersey, New York, Massa-
chusetts and Connecticut.
On November II there were on deposit in
national bank depositaries the sum of
$226,S $50, 1904, every State and Territory be-
ing represented in the distribution. Credit
Is given to prominent business men and
iinancicrs, who provided more than SG0,-
OV0,C0O towards preventing a dangerous
panic. He says that he distributed the
treasury funds as adequately as possible,
under the circumstances, seeking TO relieve
those sections most in distress, but that
there was, however, great financial dis
tress in many sections Of the country and
a remarkable scarcity of currency The
fact that clearing houses in many large
cities were forced to issue certificates To
serve as a medium OF trade is noted.
1.-THE remarkably sound and prosperous
condition of the country CONTINUES the
Secretary in his report, would seem to
warrant the belief that the strain will
leave behind no extensive business depres-
| sion"
tic continues:
When the story Of the recent conn
msrciai and industrial disturbance has
been fully told. l am confident that
many misrepresentation will be cleared
away and tnat the interdependenee of
all sections of the country will be more
fully understood. Ii Is said that many
of our people have boarded money.
This is undoubtedly true, but so nave
many OF the banks. We hear little,
however. of the untold numbers of
patriotic citizens who, knowing that
I the banking situation throughout the
country was essentially sound did not
allow themselves to be influenced by
the excitemasl Of the moment but CO.
operated with national banks, savings
banks. trust companies and other m
stitutions to support credit and restore
confidence.
The Secretary OF the Treasury is
given wide discretion in many matters
wherein he is rarely called upon to ex-
erclse II, and little, If any, in others
where 1t is needed daily, particularly
as to certain of those having to do
with the vitality important subject of
our currency. In times of emergency
his hands are virtually tied. If in sneh
PERIODS OF stress, in an effort to avert
calamity and serve the interests OF all
the people, he Is obliged to resort to
UNUSUAL meaSuits, Ciluclsin Is unfortu-
nately IN many Instances directed not
TO the i~nadequacy Of the system. but
solely, TO the effort to give relief. even
though II be successful in ACCOMPLISH
ing that purpose.
1T should not be forgotten that he
mas to deal with the practical rather
IMAM the theoretical side of the cur
rency question. The failure of the adj
hefents OF the various suggested plans
of currency reform to cooperate or to
agree upon a practical measure would
hardly appear to be Il sufficient reason
FOR holding him responsible for their
INDIGESTION and i%naction. The laws nm
der which be administers his office
should be made TO meet the daily needs
VI AhO PCpIlts diu lilN uuIlGN. HUT1rlRnf-
ly onerous as they are, should not be
made more burdensome by restrictions
which leave him with the responsibility.
put with no adequate means at his dis
posal TO meet IL.
what has happened not only this
year, but many times before. should
serve as an admOnition to enact wise
laws for the prevention in the future of
disasters due in part at least to the
imperfect organization OF our monetary
system. Admittedly il has been of
great service to our people. but with
changing conditions there has become
more apparent each year the need for
Improvement OF n substantial and per-
manent character. If no action is
thought advisable at this time fully to
meet this need, l deem it important
that something be done as speedily as
may be consistent with thorough con-
sideration to provide under government
guarantee a greater elasticity to the
currency-something which shall be
automatic In its operation and which
shall tend TO equalize rates of Inter-
est not OILY in different sections of
the country, but at different periods OF
the year.
Provision should be made either for
such elasticity without the necessity OF
intervention on the part of the Secre-
tary OF the Treasury on he should be
granted the authority to supply ii nv
properly ~safeguarded measures. | be-
lieve that simplicity OF plan and prompt
ness of action are what the people need
and will demand. What particular form
this proposed legislation should take
must be left to the action of the Com
gress. ] have no pride Of opinion as to
the method, but | have the deepest con-
Germ hat the result shall be adequate
ly beneficial.
''Tho only specific recommendation 7
would make ut present is that II be
given prompt attention, and that Il he
not laid aside until some defini means
OF relief shall have been enacted into
| law -