The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1907-11-21
BAD FINANCIERING
And Illegal as WeII-Failed to Under
stand the Situation.

AAAAA AAOGteA ao NNkA NhNA w GANANAT
stand the Situation.
New York Journal of Commerce)
Both measures are of more than
doubtful legality With the immense
surplus on hand there should be no
need of borrowing for the work going
on at the isthmus, and borrowing is
authorized by the act of June 2S, 1902,
only las the proceeds may be required
to defray expenditures authorized by
this act which proceeds can only be
used for meeting such expenditures.
If the legality Of this anticipation of
future needs is more than question
able, the issue of the proposed three
per cent. notes Is beyond question
without legal authority. In the act of
June 13, 1898, ITO provide ways and
means to meet war expenditures and
for other purposes" the secretary of
the treasury is authorized to borrow at
not more than three per cent. on "cer-
| tifioates Of Indebtedness" such sum or
sums as in his judgment may be neces-
sary to meet public expenditures" The
pretense that such borrowing now is
necessary to meet public expenditures
is too absurd to be treated seriously
except for its mischievous effect, and IL
it is necessary for that purpose in the
| judgment Of the present secretary Of
the treasury, it only shows that his
judgment is capable Of being swayed
to any arbitrary and illegal action
which he merely imagines the circum-
stances to demand.
| The most deplorable phase Of this
extraordinary proceeding is the revela-
ton Of the incapacity of both the Sec
Rotary Of the treasury and the Presi-
dent of the United States to compre-
bend the situation with which they
are dealing or to appreciate the con-
sequences of what they are doing. Incl
dentahly 1t illustrates the danger of ele-
waiting to the position of the head of
the treasury department Of the gov
eminent mere amateur. a neophyte
in finance, who has neither the nat.
ural capacity, the training nor the Elk.
perience to qualify him for its duties.
The Presidents letter of approval Is
melancholy in its exhibition Of lack
OF understanding and OF grasp in mat
tiers of momentous consequence to the
people of this country He says "the
government will see that the people dc
not suffer If only the people them
selves will act in a normal manner
| This is carrying paternalism to the
extreme, as If the government were
onnniscient and omnipotent and the
people were Its grandchildren, de.
pendent upon it for all their blessings
and needing only to obey its voice anC
be good in order to be prosperous
and happy. Crops are good, says
the president, land business condi
tons are sound and we should pu
the money we have into circulation il
order to meet the needs of abound
ing prosperity"
This not only ignores the rea
causes Of the present situation, bu
hlindly assumes that they do not OK
ist, and the president plainly say
that business conditions are 'funda
mentally sound" and "ail that on
; people have to do now is to go aheat
with their normal business in nor
NAL fashion and the whole difficulty
disappears" This is applying tn
Christian science doctrine to tn
} finance and business of the country
which has been for two or tire
years working into disordered con
dition and needs careful and judiclou
treatment.
There is no use in shutting our eye
) to the fact that in the fever of gu
, 'unexampled prosperity there In
been an enormous amount of overdo
ing, speculation and extravaganza