The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1907-12-04

Pure Food Law,

i nWF"tlUuu INV tue uttlpn ui thu Nui'VWH
State food and dairy commissioners
Showed IN striking fashion how much
good for tho whole people rcsults from
the hearty cooperation Of the Federal
and State officials In securing given
reform. II Is primarily to tho action
OF these State commissioners that We
owe the enactment OF this lawI for they
aroused the people, FIRST to demand The
enactment and enforcement OF state
laws on the subject. md then the enact
ment of tho Federal law, without which
the state laws were largely ineffective.
There must he the closest cooperation
between the National nild State govern
ments In administering these laws,
Currency,
In my Message 10 the CongNsa a year
ago spoke rs follows OF tho eurfcAcyl
II especially call your attention 10
the condition Of our currency laws, The
natlonal.bank act has ably served
great purpose In aiding the enormous
business development Of tho country,
and within ten years there has been an
Increase IN circulation per capita from
S2l,ll to &3a0s. fpr several years eyi.
dencc has been aeenmuatng that add.
tional legislation IL needed. The recur.
renee Of each crop season emphasizes
the defects OF the present laws, There
must soon be revision OF them, b..
cause to leave them as they are means
to Incur liability Of business disaster.
Since your body adjourned there has
been iluctuation IN the interest on call
money from 2 per cent TO 30 per cent,
and the nnctuation was even gicates
during the preceding six months, The
Secretary OF the Treasury had 10 step
In and by wise action put stop 10 the
violent period OF oscillation. Even
worse than such iluctuatioa Il tho ad'
vance In commercial rates aud the nm
certainty felt In the auiliceney OF credit
even at high rates, All commercial In
tcrests suffer during each crop period,
Excessive rates for call money IN New
York attract money from the interior
banks into the speculative field. This
dcpletes the fund that would otherwise
ie available Tor commercial mses. aud
commercial borrowers are forced TO pay
abnormal rates, so that each fall tax,
In tho shape OF Increased intcres. char.
gcs, is placed on the whole comneNe OF
tho country.
"The mere statement OF these facts
shows that our present system ID serl'
ously defective There 10 need o.!
change, Unfortunately. however. many
OF the proposed changes must be ruled
from consideration because they are com
plleatcd. are not easy OF comprehension,
and tend 10 disturb existing rights and
interests, We must also rule out any
plan which would materially impair tho
value OF the United States per cent
bonds now pledged to secure circulation.
the issue OF which was made under con.
litIonA peculiarly ercditable to the Trca.
sllry. | do not press any especial plan.
Various plans have recently been pro.
posed by expert committees OF bankers.
Among the plans which are possibly
feasible and which certainly should ~.
eeiye your consideration Is that repeat.
edly brought TO your attention by the
present Secretary OF the Treasury. the
essential features OF which have been
by many prominent bankers
aud business men. According to ,hia
plan national banks should be permitted
To issue specified proportion OF their
capital IN notes OF Kind the issue TO
be taxed at so high d rate as to drive tho
notes back when not wanted IN lcgitl
mate trade, This plan would not permit
the issue Of currency to give banks nddi
tional profits, but to mec' the emer.
gency presented BY times OF stringeney.
Il do not say that this Is the right
system. | only advance II TO emphasize
my belief that there Ia need for the
adoption OF some system which shall be
automatic aud open to all sound banks,
50 as TO avoid all possibility OF discrim.
nation and favoritism, Such plan would
tend TO prevent the spasms OF high
money and speculation which now obtain
in the New York market; for at present
there II too much currency at certain
seasons OF the year. and It's accumula.
tion at New York tempts bankers TO
lend II ut low rates for speculative pur.
poses; whereas ut other times when the
crops are being moved there Ii urgent
need for a large but temporary increase
IN the currency supply. II must never
be forgotten that this question concerns
business men generally quite as much IA
especially Is this true of stock.
men. farmers, and business men In the
west; for ut present at certain season.
of the wear tho difference In intaraat