Dakota farmers' leader. (Canton, S.D.) 1890-19??, 1907-12-06

law than they were without it. The /:
!: benefit to interstate common car :
riers and business concerns from:
:: the legislation / advocate would be I:
: equally marked. aI%a:
Incidentally, in the, passage of the
pure food law the action of the varf-
Gus state food and dairy commission
much good for the whole people re-
suits from the hearty cooperation OF
the federal and state officials in Sc
curing a given reform. 1t is prima-
rily to the action of these state COM
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 sub
ject, and then the enactment of the
federal law, without which the state
laws We're largely ineffective. There
must be the closest cooperation be-
tween the national and state govern
ments in administering these laws.
Currency Reform Needed.
In my message to the congress a veal
| g I spoke as follows of the currency:
Il especially call your attention to
the condition of our currency laws. III
national bank act has ably served a
great purpose in aiding the enormous
business development of the country,
n within ten years there has been an
increase in circulation per capita from
| SZl.4l 10 S0o.US. fOT several years evil
dence has been accommodating hat adj
ditional legislation is needed. The re-
currence Of each crop season empha-
sizes the defects of the present laws.
There must soon be a revision of them
because to leave them as they are
means to incur liability Of business dis
! aster. Since your body adjourned
there has been a fiuctuation in the in
terest on call money from 2 per cent.
to 80 per cent. and the f%uctuation was
nyyn, u-rootn~ 1rv~it ar fl1 rraonlt-r ,t3r
months The secretary of the treasury
had to step in and by wise action put
a stop to the most violent period OF
oscillation. Even worse than such
fuctuation is the advan In CONNER
cial rates and the uncertainty felt in
the insuff1ciency of credit even at high
rates. All commercial interests suffer
during each crop period. Excessive
rates for call money in New York at
tract one from the interior banks
into the speculative field. This depletes
the fund that would otherwise be avail
able for commercial uses, and CONNER
cial borrowers are forced to pay alb
norma rates. SO that each fall a tax,
charges, is placed on the whole COM
merce of the country.
1.-The mere statement Of these facts
shows that our present system Is Sc
riously defective.A> There is need Of a
change. It must never be forgotten
that this question concerns business
men generally quite as much as bank
ers; especially Is this true Of stock
men, farmers, and business me in the
west; for at present at certain seasons
rates between the cas- and west is
from 6 to 10 per cent. whereas in Can
d the corresponding difference is but
2 per cent"
I again urge on the congress the need
Of immediate attention to this matter.
| Wa mead a Qrrpa f0r ola GfiCitv In M r,,r-
rency; provided, OF course, that we
recognize he even greater need Of a
safe and secure currency. There must
always be the most rigid examination
by the national authorities.
Should Be Elastic System.
: Provision should be made for an !:
: emergency currency. The emer- /:
gency issue should. OF course. be !:
/: made with effective guaranty. and !:
upon conditions carefully prescribed (:
by the government. Such emer- |:
/: gency issue must be based on ade- !:
: quate securities approved by the !:
: government, and must be issued I'M !:
der a heavy lax. This would permit ::
currency being issued when the de- I:
mand for it was urgent, while Sc !:
curing its retirement as the deman I:
fell off. It is worth Investigating /:
to determine whether officers and /:
/: directors of national banks should :
(: ever be allowed to loan to them !:
: selves. Trust companies should /:
be subject to the same supervision /.
as banks; legislation to this effect /:
should be enacted for the District !:
of Columbia and the territories. /:
Yet we also remember that ever
the wisest legislation on the subject
a only accomplish a certain amount.
Nc legislation can by any possibility
guarantee the business community
against he results of speculative folly
any more than it can guarantee an
individual against the results of his ex-
travagance. When an Individual mort
cages his house to buy an automobile
he invites disaster; and when wealthy
men, or men who pose as such, or are
unscrupulously or foolishly eager to be-
! anne cr,1h i,1,rlcattn ,ooJI1,. noc,tl,-