The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-12-06

embarrassed institutions and after
wards by providing for the imports of
gold, of which up to Nov. 10 there had
been engaged more than sec. 600 GOO,
operated to prevent a dangerous panic.
The secretary of the treasury has made
such adjustment of deposits between
the various cities and sections as was
possible in such a time of financial
stress, and through the cooperation of
eastern bankers has secured the trans
fer, through the usual commercial
, channels. of large sums of money to
the south, the west. the northwest and
the Pacific coast. There was, however.
great financial distress in many sec
tions Of the country and a remarkable
scarcity of currency. The clearing
houses in nearly all the prominent
cities of the United States felt Obliged
to adopt such measures of relief as
they found available. The remarkably
sound and prosperous condition of the
country would seem to warrant the be-
lief that the strain will leave behind
no extensive business depression.
Everybody Hoarded Money.
When 1.-THE story of the recent COM
mercial and industrial disturbance has
been fully told, l am confident that
many misapprehensions will be cleared
away and that the interdependence of
all sections of the country viii be
more fully understood. It is said that
many of our people have boarded
money. This is undoubtedly true; but
so have many of the banks. We hear
little, however, of the untold numbers
OF patriotic citizens who. knowing that
the banking situation throughout the
country was essentially sound. did not
allow themselves to be Influenced by
the excitement of the moment, but Co
operated with national banks, savings
banks, trust companies and other in
situations to support credit and re-
store confidence.
Tho secretary of the treasury is
given wide discretion in many mat
tors, wherein he IS rarely called upon
to exercise it, and little if any, in
others where it is needed daily, Dar-
ticulariy as to certain of those having
to do with the vitality important sub
Ject of our currency. In times of emer-
gency his hands are virtually tied. If
In such periods of stress. in an effort
to avert calamity and serve the inter
ests OF all the people, he is Obliged to
resort to unusual measures. criticism
is unfortunately in many instances di-
rected not to the inadequacy of the
system. but 10 the effort to give relief,
even though it be successful in ac-
eomplishing that purpose. 1t should
not be forgotten that ne has to deal
with the practical rather than the the
oretical side of the currency auction
The failure of the adherents of the va
riOus suggested plans CT currency re-
form to cooperate or to agree upon a
practical measure would hardly appear
to be sufficient reason for holding
him responsible for their INDIGESTION and
inactiOn. The laws under which he
administers his office should be made
to meet the daily needs of the people.
and his duties, sufficiently onerous as
they are. should not be made more bur
densOme by restrictions which leave
him with the responsibility, but with
no adequate means at his disposal to
meet it.
Might Happen Any Time.
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 i'm part at least TO the
imperfect organization of our none
tary 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 a 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
h2I to
not only i'm different sections of the
country, but at different periods of the
year. Provision should be made either
for such elasticity without the neces-
sity of Intervention on the part of the
secretary of the treasury or he should
be granted the authority to supply it
by properly safeguarded measures.
believe that simplicity of plan and
promptness of action are what the
people need and will demand. What
particular form this proposed legisla-
ton should take must be left to the
action Of congress. l have no pride of
opinion as to the method, but 1 have
the deepest concern that the result
shall be adequately beneficial
The only specific recommendation I
would make at present is that it be
given prompt attention, and that il be
not laid aside until some definite means
of relief shall have been enacted into
law
Owing to the unusual demands made
on the various officials Of the depart
ment, and particularly on the force of
my own immediate office, during the
past month. 1 have been unable to en-
grace in this report several topics upon
which data have been collected and TO
which l had intended to refer at some
length. These matters will be made
the subject of later reports for the in
formation of the congress.
GEORGE 3. CORTELYOU.
Secretary of the Treasury
To the Speaker of the House of Rep
resentatives.