Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1907-12-07

cheney OF credit even at high rates All
commercial interests suffer during each
crop period Excessive rates for call
money in New York attract money from
the interior banks into the speculative
field. This depletes the fund that would
otherwise be available for commercial
forced to pay abnormal rates, so that
each fall tax. In the shape OF in
creased interest charges, Is paid ON the
whole commerce of the country.
II dc not press any special plan. Nari-
Gus plans have recently been proposed by
expert committees of bankers. Among
the plans which are possibly feasible and
which certainly should receive your CON
sideration is that repeatedly brought to
your attention by the present secretary
of the treasury, the essential features OF
which have been approved by many
prominent bankers and business men.
According to this plan national banks
should be permitted TO issue specited
proportion of their capital in notes of a
given kind, the issue TO be taxed at so
high rate as TO drive the notes back
when not wanted in legitimate trade.
This plan would not permit the issue OF
currency 10 give banks additional pronts,
but to meet the emergency presented by
times of stringency.
II do not say that this Is the right sys-
tenn. ! only advance IL to emphasize my
belief that there is need for the adoption
of some system which shall be automatic
and open TO all sound banks, 80 as 10
avoid all possibility OF discrimina ton and
guard the interests OF Western and
Southern bankers as carefully as
guards the interests of New YORK or Chl-
cago bankers, ana must be drawn from
the standpoiuts OF the farmer ana the
merchant no less than from the stand
points Of the city banker and the country
again urge on the congress the need
of immediate attention to this matter
We need great elasticity IN our cur
rency, provided, of course, that we rec
ogniZe the even greater need OF y sdle
and secure currency. There must always
be the most rigid examination by the ma
tional authorities. Provision should be
made for an emergency currency, Inc
emergency issue should, OF course, De
made with an effective guaranty, ana
upon conditions carefully prescribed by
the government. Such emergency issue
must be based on adequate securities APP
proved by the government and must pc
issued under heavy tax. rms wouia
permit currency being issued when the
demand for il was urgent White securing
its retirement as the demand fell on. II
is worth investigating to determine
whether officers and directors of national
banks should ever be allowed TO loan 10
themselves. Trust companies should De
subject to the same supervision as BANKS,
legislation to this effect should be enact
ed for the District Of COlumbua ana lhs
territories.
Yet we must also remember that even
the wisest legislation on the subject can
only accomplish q certain amount. NO
LEGISLATION can by any possibility guar
antee the husiuess community against the
results of speculative folly any more than
il can guarantee an individual against me
results of his extravaganza. When an IN
diyidual mortgages his house TO buy an
he invites disaster; and when
wealthy men, or men who p'se as suCh,
or are unsCrupulusiy or ~uiy eager
TO become such, indulge in s'klesS spec
ii ii is accompanied
by dishouesty-th jeopardiZe not only
their own future but the future OF All
their innocent fellow citizens, for they
expose the whole business community 10
panic and distress.
This country is definitely committed to
the protective system and any EFFORT TO
uproot Ii could not but cause widespread
industrial disaster IN
The Tariff. other words, the
principle of the pres
ent tariff law could not with wisdom be
changed But in a country of such phe-
nomenal growth as ours II is probably
well that every dozen years or so the
tariff laws should be carefully scrutinized
so as to see that no excessive or improper
benefits are conferred thereby, that prop
er revenue Is provided, and that our for
eign trade is encouraged. There must al
ways be as a minimum tariff which will
not only allow for the collection of an
ample revenue but which will at least
make good the difference in cost Of pro-
duction here and abroad; that is, the diff
ference in the cost OF labor here and
a broad for the we'll being of the wage
worker must ever be a cardinal point sof
American policy. The question should be
approached purely from a business stand
point: both the time and the manner of
he change being suCh.as to arouse the
of agitation and disturbance in
the business world, and to give the least
play for selfish and factional motives.
The sole consideration should be to see
that the sum total of changes represents
the public good. This means that the
subject cannot with wisdom be dealt with
nFaE2nInQ a nrnElHRntIlI
ton, because as a matter of fact expert
ence has conclusvely shown that at such
A time it is impossible to get men to treat
[ from the standpoint of the public good.
In my Judgment the wise time to deal
With the matter is Immediately after such
election.
When our tax laws are revised the
question of an income tax and an inheri-
lance tax should receive the careful at
tention of our legiS-
Income Tax and lators. In my judg-
Inheritance Tax ment both of these
taxes should be part
IF our system of federal taxation. l
speak dithdentiy about the income tax
because one scheme for an income tax
Vas declared unconstitutional by the SUI
)reme court: while In addition II is a
tirf1cuit tax to administer in its practical
working, and great care would have to be
Exercised to see that i was not evaded by
he very men whom 1t was most deSira ble
o have taxed, for If so evaded it would.
IF course. be worse than no tax at all;
Is the least desirable Of all taxes is the
AK which bears heavily upon the honest
Nevertheless, a graduated income tax OF
he proper type would be a desirable
eature OF federal taxation, and 1t is to
DC hoped that one may be devised which
he supreme court will declare constitu-
ionai. The Inheritance tax, however is
10Th p far better method OF taxation, and
ar more important for the purpose of
iavtng the fortunes of the country bear
n proportion TO their increase I'm size a
corresponding Increase and burden OF
axation. The government has the abso-
ute right to decide as to the terms upon
which a man shall receive a bequest or
eyise from another, and this point In the
evolution of property Is especially ap-
'ropriate for the imposition of tax.
avs imposing such taxes have repeat |
diy been placed upon the national stat
tie books and as repeatedly declared |
Constitutional by the courts: and these |
nat is, after a certain amount Is reached |
he bequest or gift in life or death, is |
Increasingly burdened and the rate OF |
AVIATION is increased in proportion to the |
he bequest These principles are recog- |
lied already In the leading civilized na- |
ions of the world.
The German law is especially interest |
lg to us because Il makes the inher- |
ance tax an imperial measure while
llotting to the Individual states of the
mpire portion of the proceeds and per-
hitting them to impose taxes in addition
, those imposed. by the imperial govern
rent. Small inheritances are exempt, |
ut the tax is so sharply progressive that !
vhen the inheritance is still not very
irge, provided II is not an agricultural
r forest land, IL Is taxed at the rate
20 per cent II 1t goes to distant rela-
YES. There Is no reason why In the
Tnited States the national government
null KaAf tftrr f,h hAxtfa