The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1907-11-15
NATIONAL INCORPORATION
LAWS.

The New York World cannot bring
itself to believe that Mr.. Roosevelt
would take the country by the throat
and at the price of currency reform
compel it to embark upon sweep
ing policy of Capitalization"
That is the absurd cry raised when
Mr.. Chase, in order to find market
for United States bonds, devised the
present system of national banks,
making the bonds basis for cur
rency and taxing all of the issues OF
state banks out of existence.
Undoubtedly that was an empirical
system, devised to meet a special
| emergency, but the whole commerce
of the United States has adapted it
self to that system and with general
benefit to all concerned. Even the
hottest of home rulers must admit
that a system of bank note currency,
under which the notes of Massachu-
sets circulate without discount
throughout the country, is far bet
ter system for the country at large
than the old system of state issues.
Men certainly should learn from
experience. Experience has shown
that the national bank act has done
more than protect the note holders;
it has protected the depositors, the
borrowers and the business of the
country generally.
1t is difficult to see, therefore, why
this system of federal incorporation
may not be good applied to other
branches of business, as it has proven
good applied to the banking business.
1t has been beneficial to have for
banks a federal charter; why may
it not be equally beneficial for man
ufacturing companies to have a fed
eral charter? For insurance compa-
MES to have a federal charter? For
railroads to have a federal charter?
Is it Capitalization? 1t may be.
But thing is not necessarily evil
because it is labeled Capitalization. :"
What the people of this country want
is efficiency, efficiency in commerce,
in banking, in transportation and in
government.
Corporations have pointed the way
to efficiency through Capitalization.
This may be carried too far. 1t has
frequently been carried too far, and
reaction will come but science and
invention strengthen this tendency
The telephone, the telegraph, the
electric lines, the steam roads-all
are influences centralizing industry
and commerce, and making it posi-
BILE intelligently to control these CEN
tralized organisms.
The basis of the national bank cur
rency is disappearing as the bonds
of the government are redeemed. 1t
is necessary to find substitute.
Credit currency" will not do. The
proposition that banks be allowed to
issue notes on their bills receivable
may be considered as a temporary
measure to meet crisis, but as a
permanent policy, accepted as the
basis for permanent currency, these
forms of Indebtedness will not salts
fly the necessities of the case.
But if the railroads were chartered
by the federal government, their is
sues not good unless authorized by
the federal government, those bond
issues might be accepted from COM
panies not in default for ten years as
a perfectly safe basis for currency
issue.
Furthermore, it would give a
standing and stability to railroad
bonds that would be of immense ben
eft to the transportation interests of
the country.
In the face of such advantages.
the mere cutlery about Capitalization
will not in the least influence the
public mind.
What the people want now is not
a temporary measure drawn to meet
a temporary emergency, but a !
measure, which will
provide growing system of curren-
cy to meet the growing necessities of |
the country Il OniSYille Post