New-York tribune., 1907-12-04
Currency.

especially ca-i sOAI altr-Al4yA- I-,c
our currency laws ne ] 1lio.1 d res1 purpose IN
c ii,ling The enormous business
SN development OF the countiy ,, ana
Nio sf;on ~ Ie sIita from S2i 4 $3s For ses
sral years eEiaencs has Den ~ T4cIfTrence
of each crop season eInI !szes me osi ,7sS5- of
present laws. There must soon De q Ienlsa,L - % %
fhtn because 10 leay. them as they %Fe means 80
incur lauility OF business disaster SIM -
1HIs'esI - -, -T9iatig,l VAS even greater during
Treasury step III, and by vase acton P1( q
stop 10 the violent perlod OF oscl--auohi, "a
Even worse than such nuctuauOn Is li1 1 ieT 0CS az
commercial rates and the uncetl4.ts -eis - co1 me
anercia interests suffer Curing eacn crop IeElco EA
money from the banks into The speculative
5seld. This depetes The fund that woull oClig, I
wise be available Tor commercial uses, sii-u CuIlI
,sIes so Inat @aen fan tax in the shape OF N
creased interest charges, is placed on the "hoie
The mere statement Of these iacts SHOWS 7-t M
present system IS seriously oettclNt. @ Il.'IS
.. The proposed changes must - - - - not
sideratiOn because tney are complicated. are no
ing rights and interests. Ne must also rule out
a1 a1s IiaS which Would materially impair
.-aiue 81 the / nited States per cent bonds now
pledged 10 secure circulation, the issue o. M4l!G
made under conditions pecullSiiy cIe9ia;1'L 3
the Treasury DO not press any esIeclal li%Si.. AN
expert committees OF bankers among Ilt p.I pi@IItH
which possibly feasible and which cef fanny
brought your attention by the present Seereee
which nave been approved by many prominent
bankers and business men. According TO mis-
plan national banks should be permitted TO issue
2 specified proportion OF their capital in notes
OF given kind. the issue to be taxed Al Al 50 d tIsd
legitimate trade This plan would not permit permit
profits. but TO meet the emergency presented 10y
do not say that this is the right system I only
advance il 10 emphasize my bellet that mere n
be automatic and open all sound banks; SO as to
avoid all posi- 0Ilit, OF olscTlil1ltodl m + aI no "a aes
ism such plan ~ouIo Is.a 70 sit o, tisiT in
f high money and specGaop %lcE - nov {g g' IS too 20
i,ec c,,pIsfion Al New York tempts bankers to
whereas other times when the crops ar, peLILe
1ogsr1 ,99xTq mere inerease in the cgrrenc supply L must
never be forgotten that this quesIloa ooe aLere. az
sess men genefaily que M .e az men farmers and
.easoIs Q, N , ca a the west is from TO 10 per
hetWeeIi % lIe ~ c.aTsde the corresponding differ
enoe is per cent Any plan mys1 - o. c2' %5ISt
p-s as carefully II guards the interests OF 80 80
& orr OF 5Dnas of the farmer and the merchant no
sezs than from the standpoints of the CITY oalAei
and the country banker
again urge on the Congress the need OF I'M
mediate attention to this matter We need a
Greater elasticity in our currency pToNiueu' o3
course that we recognize the even greater HetN
oS q safe and secure currency. There must al
1yavs be the most rigid eXafnlhauoiI HH -
national authorities Provision SIiouIu ,,sZ- ne 80
-for an emergency currency. The efnergehcS
issue should of course, be made with an eslST tII
tive guaranty. and upon condltolLS o+I, SaLel.1ty
,,r.ecrihed oy the government. 5uch einerseICs
issue must be based on adequate secnfIues at
,nroved by the government ana 1nuSt os , lestS-
srnder heavy tax This would permit cur cur ienCs &
being issued when the demand loI ~ 80
,Irgent while securing its retirement Is tIie
1nand fell off 1t IS worth NV m 5it Of ns
1erroine whether officers and directors oI no
sionaJ hanks should ever be allowed TO i3 loaH 70
themselves Trust companies shouio oS sunJ. ! -
20 the same supervision as banhs' iesrS9t.;. T
80 oetec+ saonld be enacted for the Dis1rlct Oh
Columbia and the territories - .,, mis-
Vet we must also remember tnaI even .L II
Slhiect aCCOIlfilSil ciAAe
: cer4sin s,no1lnt No legislation can by any @ ioS
Eihilitv guarantee the business conltltrS +fa,1 II
.ba -es1lts of speculative folly any more tld.! -
can ruarantee an individual against tne ;sI Iesu,
of b,s extravaganza When an ,., ii, ~, g.
mortgages his house TO buy an autonoplle ne ] ~,
80 1iSaSter and when wealthy men. or @ men
who pose as such, or are unscruPuLousNs N l1ase ~
isrlv eager TO become such ihoulse ihsa,,;od ia by
neutrality-suspicious. II IL Is -; o,,n
Itshonesfv-they ieopardiZe not only tnelr o"n ,
etnya bnt the future Of all their innocent lei Iel
7oz- fitizens for they expose the MHoie D"S
,romnunity TO panic and distress. :.
srIl ;,con7a account of the nation Is IN
- sstiefactorv condition For the six hscai
- -. an5nr with July last the total eXpenol-
Nedi9 O9 tures and revenues of the ma
So tional government. exclusive
ne~e IF the postal revenues and eX-
z;.,-., ,,,ere in round numbers. revenues.
"a as5 600 600 and expenditures sSZ o,eVcoo'-
rrl,e net excess Of income over expenditures, IN
..,,,sinr in the latter the S5n,eoo,eoe eApehue"
- ~ r1gna,na canal was $190, 0o0,00e for the
six wears an average of about s9l,oOe.Oeo year
This rer,resents approximation between IA
0lfzs
..-n.,e -Tbe satisfactory working of the present
tariff law has been chiefly responsive loi Hlte @
excellent showing Nevertheless' @ uiele @ u az
evident and constantly growing Teellhg Among
,,ur Deople that the time is rapidly appfoaChl,
when cur system OF revenue legislation h'usl oe
revised. -, - ~.
,,,otectiye system and any effort 10 uproot IL
could not but cause widespread lndustIiaI ais i
aster In other words. the
III. rariS principle of the present tarli
~ law could not with wisdom be
F~.la afasDrNas
s-o1tfb az ours II is probably well that every
Sozen wears or so the tariff laws should be care
fuliv scrutinized as 10 see that no eNct9sIN ~.
,r improper benefits are conferred 1heIepS ...e
,,,,,e- revenue is provided. and that our fo tlgSl
,rade is encouraged, There must aiWdHS pe -
q n, r1irr,rlrn tariff which VIII not only allow Tor
- collection of an ample revenue out Nhlcie
,,-;u af least make good the difference lh 'oo'
of ,rosuction here and abroad: that Is. the al
- - i, the labor cost here and abroad, for
fh., wellbeng Of the wageWorker must ever Ds
p cardinal point of American policy. me que que
- sho,,ld be approached purely from a Dusl-
,1eee standpoint: both the time and the manner
oe tbs change being such as 20 arouse the lnlni-
,s,,,o of agitation and disturbance IN the dust
ress world and TO give the least play loI se.s .i
and factfonal motives. The sole coilsloSt lIoL @
should be 10 see mar me sun III, 80 80 s nat fhe
represents the public good rms iIlsals -, - a. IL.
subject cannot with wisdom be dealt "ltn IN @ nlle
~ear preceding Presidential eiecuoil, peo"u9. :1
ns a matter OF fact experience mas Soii.
.o-,-n that at such time il Is lrnposslDie 10 ger
len TO treat IL the standpoint Oh the pupilc
rood In my judgment the vase time 10 9eSi
;sr ,l,e matter is Immediately after such cleo
zion. A. ,,-.rt;o,,
- i,oon,e tax and an inheritance tax should
,eceixc the careful attention of our legislators
In my judgment both of these
=,d taxes should be part OF our
,eo;s-,r. Ia. system of federal taxation L
sneak diffidently about the in
49, lc.,,se one scheme for an income tax
80 declared 1lncon stifutional by the supreme
court while III addition II is diflcult TAX o 70
administer ia its practical wcrhiis' siIu -. a.
are would have TO pc exercised To see tnat ~ ~
was not evaded by the very I1en WHOM , ~ = : -