Bisbee daily review. [volume] (Bisbee, Ariz.) 1901-1971, 1907-12-04

the Treasury, the essential features
OF which have been approved by many
prominent bankers and business men.
according 10 THIS plan national banks
should be permitted to issue a speci-
fled proportion of their capital in
notes OF a given kind, the issue to be
taxed at so high q rate as to drive
the notes back when not wanted In
legitimate trade. This plan would
not permit the issue of currency 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. / only advance it to empha-
size my belief that there is need Tor
adoption of some system which shall
be automatic and open to ali sound
banks, SO as to avoid all possibility
of discrimination and fayoritism. Such
a plan would tend to prevent the
spasms of aigh money and specula-
ton which now obtain in the New
York market; for at present there is
too much currency at certain seasons
Of the year, and it's accumulation at
New York tempts bankers to lend it
at low rates for speculative purposes;
whereas at other times when the
crops are being moved there is ur-
gent need for a large but temporary
increase in the currency supply. It
must never be forgotten that this
question concerns business men gem
orally quite as much as bankers; es-
pecially 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 in
terest rates between the East and
the west is from to 10 per cent,
whereas in Canada the corresponding
difference is but per cent. Any
plan must, OF course, guard the inter
ests 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 be 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
as urgent, while securing its retire
ment as the demand fell off. 1t is
worth investigating to determine
whether officers and directors Of ma
tional banks should be subject to the
same supervision as banks; Iegisla-
ton to this effect should be enacted
for the District of Columbia and Iue
Territories.
Yet we must also remember that
even the wisest legislation on the sub
iect can only accomplish a certain
amount. No legislation can by any
possibility guarantee the business
community against the results OF
speculative FOLLY any more than it
can guarantee an individual against
the results of his extravaganza. When
an individual mortgages his house TO
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