The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1907-12-06
FROM THE PRESIDENTS MESSAGE
CURRENCY REFORM.

In my message TO the congress
year ago | spoke as follows of the
currency:
Il especially call your attention to
the condition of our currency laws.
The national bank act has ably serv-
ed a great purpose in aiding the enor-
NOUS business development of the
country, and within 10 years there
has been an increase in circulation
per capita from SPA to S33.0 For
several years evidence has been ac-
cumulating that additional legisla-
ton is needed. The recurrence of
each crop season emphasizes the de-
fects of the present laws There
must soon be 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 fiuctuation in the
interest on call money from ? per
cent to 80 per cent, and the fluctua-
ton was even greater during the pre-
ceding six mo-, this. the secretary of
the treasury had to step in and by
wise action put stop to the most
violent period Of oscillation. Even
worse than such fiuctuation is the
advance in commercial rates and the
uncertainty felt in the sufficiency of
credit even at high rates. All COM
mercial interests suffer during each
crop period. Excessive rates for call
money in New York attract money
from the interior banks into the spec
ulative field. This depletes the fund
that would otherwise be available for
commercial uses, and commercial
borrowers are forced to pay abnor-
NAL rates, so that each fall a tax,
in the shape of Increased interest
charges, is placed on the whole COM
merce of the country.
PRESENT SYSTEM DEFECTIVE
1.-The mere statement of these facts
shows that our present system is seri-
ously 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 comprehension, and tend to dis
turb 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 circula
ton, the issue of which was made un
der conditions peculiarly credita Bile to
the treasury. / do not press any es-
pecial plan. Various plans have re-
Gently been proposed by expert COM
mittees of bankers. Among the plans
which are possibly feasible and which
certainly should receive your consid-
GRAFTON is that repeatedly brought to
your attention by the present secre-
tary of the treasury, the essential
features of which have been APP
proved by many prominent bankers
and business Ilen. According to this
plan national banks should be per-
mitted to issue a specified proper
ton of their per capita 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 legi-l
innate trade. This plan would not |
permit the issue of currency to give |
the emergency presented by times of
NOT CERTAIN HE is RIGHT.
Il do not say that this is the right
system. | only advance it to en-
)hasize my belief that there is need
or the adoption of some system
which shall be automatic and open
o all sound banks, so as to avoid
Ill possibility of discrimination and
'avoritism. Such plan would tend
o prevent the spasms of high money
md speculation which now obtain in
he New York market; for at present
here is too much currency at certain
seasons of the year, and its accum-
llation at New York tempts bankers
o lend it at low rates for specula-
i've purposes; whereas at other times
when the crops are being moved
here is urgent need for large but
temporary increase in the currency
supply. IL must never be forgotten
hat this question concerns business
men generally quite rs 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
interest rates between the east and
the west is from to 10 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 standroints of the farmer and
the merchant no less than from the