The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-12-03

terests concerned and of the actual
needs of the situation. only a special
body of men acting for the national
government under authority conferred
upon it by the congress is competent
to pass judgment on such a matter.
Those who fear, from any reason,
the extension of federal activity will
do well to study the history not only
of the national banking act but of the
pure food cav, and notably the meat
inspection law recently enacted. The
pure food law was opposed so violent
~ that its passage was delayed for a
decade; yet it has worked unmixed
and immediate good. The meat in
spection law was even more violently
assailed; and the same men who now
denounce the attitude of the national
government in seeking to oversee and
control the workings of interstate
common carriers and business con-
Germs, then asserted that we were
"diScrediting and running a great
American industry" Two years have
not elapsed, and already it has be-
come evident that the great benefit
the law confers upon the public is
accomplished by an equal benefit to
the reputable packing establishments.
The latter are better off under the
law than they were without it. The
benefit to interstate commerce car
riers and business concerns from the
legislation 1 advocate would be equal
1y marked. +--. ~.
Pure Food Law.
incidentally, in the passage of the
pure food law the action of the va
rious state food and dairy commits
sioners showed us in striking fashion
how much good for the whole people
results from the hearty cooperation
of the federal and state officials in
securing a given reform. 1t is prima-
-Rr&,
missioners that we owe the enactment
of this law; for they aroused the peo-
pie first to demand the enactment
and enforcement of state laws on the
subject, and then the enactment of
the federal law. without which the
state laws were largely Ineffective.
There must be the closest 1co-opera-
ton between the national and state
governments in administering these
laws.
As to the Currency.
In my message to the congress a
year ago I spoke as follows of the
currency:
st especially call your attention to
the condition of our currency laws.
The national bank act has ably
served a great purpose in aiding the
enormous business development of the
country. and within ten years there
has been an increase in circulation per
capita from $21.41 to $33.0S. For
several years evidence has been ac-
that additional legisla-
ton Is needed. The recurrence of
each crop season emphasizes the de
fects of the present laws. There
must soon be a revision of them, be-
cause to leave them as they are means
to incur liability of business disaster.
Since your body adjourned there has
been a f1uctuation in the interest on
call money from per cent to 80 per
Hrra
greater during the preceding six
The secretary of the treas
ury had to step in and by wise action
put a stop to the most violent period
of oscillation. Even worse than such
is the advance in CONNER
cial rates and the uncertainty felt in
the suff1ciency of credit even at high
rates. All commercial interests suf-
fer during each crop period. Excess
sive rates for call money in New York
attract money from the interior banks
into the speculative field. This de-
pletes the fund that would otherwise
be available for commercial uses and
borrowers are forced to
pay abnormal rates, SO that each fall
a tax, in the shape of increased inter-
est charges. is placed on the whole
of the country.
1.-THE mere statement of these facts
shows that our present system is
seriously defective. There is need of
a change. Unfortunately, however,
many of the proposed changes must
be ruled from consideration because
they are complicated, are not easy of
and tend to disturb
existing rights and interests. We
must also rule out any plan which
would materially impair the value of
the United states per cent bonds
now pledged to secure circulation.
the issue of which was made under
conditions peculiarly credftable to the
treasury. I do not press any especial
plan. Various plans have recently
been proposed by expert committees
Of bankers Among the plans which
are possibly feasible and which GER
tainly should receive your considera-
ton 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.
A ccordfng to this plan national banks
should be permitted TO issue speci-
fed 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 legfti-
mate trade This plan would not per-
banks additional profits. but to meet
the emergency presented by times of
. :.
ct do not say that this. is the right
system. I only advance it to empha-
size my belief that there is need for
he adoption of some system which
shall be automatic and open to all
sound banks, so as to avoid all pos
sibility of discrimination and favorit-
SIN. Such a plan would tend to pre-
vent the spasms of high money and
which now obtain in the
New York market; for at present
here is too much currency at certain
seasons of the year, and ITS accumula-
ion at New York tempts bankers to
end it at low rates for speculative
purposes; whereas at. other times
when the crops are, being moved
.hora Ia urgent need for large but