The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1907-12-04

wanted in legitimate trade. This plan
would not permit the issue of cur
rency to give banks additional profit,
put to meet the emergency presented
by times of stringency.
II do not say that this is the
to emphasizes my belief that thers
Is need for the adoption OF
some system which shall be automatic
avoid all possibility OF discrimination
and favoritism- Such q plan would
tend TO prevent the spasms OF high
money and speculation which now OBJ
tain in the New York market. for at
present there is too much currency at
certain seasons Of the year. and its ac-
cumulation at New York tempts bank
ers 10 lend 1t at low rates for specula-
tive purposes-~whereas at other times.
When the crops are being moved. there
is urgent need for a large but tenn
ply 1t must never be forgotten that
this question concerns businessmen gem
erally quite as much as bankers: espe-
clally IS this true of stOckmen. farmers
and businessmen in the west for at
present at certain seasons OF the wear
the difference in interest rates between
the east and the west is from 10 10
per cent. whereas in Canada the corre-
spending difference is but 2 per cent
ANY plan must Of course. guard the In
terests OF western and southern bank
ers as carefully as IL guards the inter-
ests Of New York or Chicago bankers.
and must be drawn from the stand
points OF the farmer and the merchant
no less than from the standpoints OF
the city banker and the country bank
err"
Emergency Currency
/ again urge on the congress the need
Of immediate attention to this matter
We need greater elasticity. in our
currency, provided. OF course that we
recognize the even greater need OF safe
and secure currency. There must al
ways be the most rigid examination by
the national authorities Provision
should be made for an emergency cur
rency- The emergency issue should OF
course. be made with an effective guar
anty and upon conditions Carefully pre-
ScFtbed by the government. such en1er-
gency issue must be based on adequate
securities approved by the governments
and must be issued under a heaSv tax-
This would permit currency being Is
sued when the demand for il was ur-
the demand fell on 1t is worth irvesS
ugattng TO determine whether officers
/ and alrsete efs ef national banks should
ever De allowed -t0-foan TO themselves.
| Trust companies ssfotffgf- subject 70
the same supervision as banks: fegisla-
I ton to this-effect should be Enacted
for the district OF Columbia and the
Yet we must also remember that
even the w1sest legislation on the sub
Ject can only accomplish a certain
aino unl.- 20 -leg1SlattO tOn--carl. anyr
possibility guarantees the business com
muntty against the results of sDecula-
i've IolIy any more than il can guar
antee an individual against the results
OF ms extravaganza When an tndi-
V1dual mortgages his house TO buy an
automobile he invites disaster. and
when wealthy men. or men who
pose as such, or are unScrupuIous-
lily or fo0iishly eager 10 -becDnie such
indulge IN reckless speculation-es-
pecially If Ii is accompanied by dis
honesty-they jeopardize not only their
own future. but the future OF all their
| Innocent fellow citizens. for they ex-
pose the whole business commurtitv
to panic and distress