The Carlisle independent., 1907-12-05

ital in notes of a given kind, the issue to be taxed at so high a rate as to drive the notes back when not wanted In legitf- mate trade This plan would not per init the issue of currency to give banks additional profits, but to meet the emer- gency presented by times of stringency. I do not say that this is the right sys- tenn. I only advance 1t to emphasize my belief that there is need for the adop ton of some system which shall be au- tomatie and open to all sound banks, as to avoid all possibility of discrim- ination and favoritsm. Such plan would tend to prevent the spasms of high money and speculation which now ob tain in the New York market; for at present there is too much currency at certain seasons of the year. and it's ac- emulation 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 large but temporary in crease in the currency supply. It must never be forgotten that this question concerns business men generally quite as much as bankers; especially is this true of stockmen, farmers and business men in the west; for at present at certain seasons of the year the difference in in tereSt rates between the east and west is from six to ten per cent, whereas in Canada the corresponding difference is but two per cent. Any plan must, of course, guard the interests 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"
 Repeats Recommen "a dations.
 The president continues:
 T again urge on the congress the need of imm mediate attention to this matter. We need a greater elasticity in our currency; provided, of course, that we recognize the even greater need of 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 emergency issue should. of course, be made with an effective guaranty. and upon condi- tions carefully prescribed by the gov ernment. Such emergency issue must be based on adequate securities ap- proved by the government, and must be issued under heavy tax. This would permit currency being issued when the demand for 1t was urgent, while securing it's retirement as the demand fell off. It is worth investi-
 
 and directors of national banks should ever be allowed to loan to themselves. Trust companies should be subject to the same supervision as banks; legisla- tion to this effect should be enacted for the District of Columbia and the terri tories"
 Not Time for Tariff Discussion.
 On the subject of the tariff the presi- dent declares. himself in favor of post poning all consideration of the ques- tion until after the presidential elec- ton. He says:
 ''The income account of the nation is in most satisfactory condition For the six fiscal years ending with the first of July last, the total expenditures and revenues of the national govern msnt, exclusive of the postal revenues and expenditures, were in round num- bers, revenues, 8, ,465, ,0o0, 900, and ex- penditures, S3,275, GOO. The net ex- cess of income over expenditures. in cluding in the latter the fifty millions expended for the Panama canal. was S190, 100000 for the six years, an average of about $31, ,000, 900 a year This represents an approximation between in come and outgo which it would be hard to improve. The satisfactory working of the present tariff law has been chiefly responsible for this excellent showing. Nevertheless there is an evident and con- stantly growing feeling among our peo- pie that the time is rapidly approaching when our system of revenue legislation must be revised.
 This country is definitely committed to the protective system and any effort to uproot it could not but cause wide spread industrial disaster. In other words, the principle of the present tar if law could not with wisdom. be changed. But in a country of such phenomenal growth as ours it is prob ably we'll that every dozen years or so the tariff laws should be carefully scrutinizedS so as to see that no ex- cessive or improper benefits are con ferred thereby. that proper revenue, is provided, and that our foreign trade is encouraged. There must always be as a minimum a 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 produc- tion here and abroad; that is. the diff ference in the labor cost here and abroad, for the well-being of the wage worker must ever be a cardinal point of American policy The sole consider ation should be to see that the sum total of changes represent the public good This means that the subject can not with wisdom be dealt with in the year preceding a presidential election, because as a matter of fact experience has conclusively shown that at such a time it is impossible to get men to t:'es-t it from the standpoint of the public good. In my judgment the wise time to deal with the matter is irumedi- ately after such election"
 Income and Inheritance Tax44--s--,
 There has been no change in the mind of the president concerning the advsability of an income tax and an inheritance tax. In the message he says:
 When our tax jaws are revised the question of an income tax and an in- heritance tax should receive the care full attention of our legislators. In my judgment both of these taxes should be part of our system of federal taxation. I speak diffidently about the income tax