The Washington herald., 1907-12-06
URGES MONEY LAWS
Secretary COrtelyOu Makes
Report to Congress.
FAv0RS ELASTIC CURRENCY
Recommends Plan That Will Be
Automatic in Its Operation to Pre-
ture-Simplfcity and PrOmptness
Two Things Needed, He Declares.

Two Things Needed. He Declares.
Secretary of the Treasury Cortelyou
yesterday submitted his annual report to
Congress. The Secretary dwells somewhat
on the recent disturbance in the money
market, points out some defects in the
currency system. and recommends that
the system be improved. He says in part:
when the story of the recent CONNER
oial and Industrial disturbance has been
fully told. | am confident that many mis-
apprehensions viii be cleared away, and
that the interdependence of all sections
of the country will be more fully under
stood. II is said that many OF our people
have boarded money. This is undoubtedly
true, but so have many OF the banks.
We hear little. however, of the untold
numbers Of patriotic citizens who. know
ing that the banking situation throughout
the country was essentially sound. did
not allow themselves to be Influenced
by the excitement OF the moment but CO.
operated with national banks. savings
banks trust companies. and other insti-
tutions TO support credit and restore con-
fidence.
when His Hands Are Tied.
The Secretary OF the Treasury is given
wide discretion In many matters. wherein
he is rarely called upon 10 exercise it,
and little. II any. IN others where it is
needed daily. particularly as to certain
Of those having to do with the vitality
important subject Of our currency. In
| times OF emergency his hands are vlr-
tually tied. II in such periods Of stress.
| in an effort 10 avert calamity and serve
the interests of all the people. he is
obliged TO resort 20 unusual measures,
criticism is unfortunately in many in
| stances directed not to the inadequacy
Of the system but solely to the effort to
give relief, even though it be successful
in accomplishing that purpose. 1t should
not be forgotten that he has 70 deal
with the practical rather than the the
oretical side Of the currency question.
Responsibility on Him.
The failure of the adherents OF the
various suggested plans OF currency re-
form 10 cooperate or 70 agree upon a
practical measure would hardly appear
to be a sufficient reason for holding him
responsible for their INDIGESTION and mac
ton The laws under which he admins
tiers his office should be made 90 meet
the daily needs Of the people. and his du-
ties, sufficiently oneroUs. as they are.
should not be made more bUrdensome by
restrictions which leave him with the
responsibility. but with no adequate
means at his disposal to meet II.
system Needs Improvement.
What has happened not only this year.
but many times before. should serve as
an admonition 20 enact wise laws for the
prevention in the future Of disasters due.
in part. at least. 70 the imperfect or
ganization OF our monetary system.
Admittedly il has been OF great service
10 our people, but with changing cOndi-
tons there has become more apparent
each year the need for Improvement of
substantial and permanent character. II
no action is thought advisable AT this
time fully 10 meet this need. deem il
important that something be done as
speedily as may be consistent with
thorough consideration 10 provide under
government guaranty a greater elasticity
10 the currency-something which shall
be automatic in its operation, and which
shall tend TO cqualize rates of interest
not only in different sections OF the coun-
try, but at different periods Of the year.
simplicity Of Plan.
Provision should be made either for
such elasticity without the necessity Of
Intervention on the part Of the Secretary
OF the Treasury or he should be granted
the authority TO supply it by properly
safeguarded measures. believe that
simplicity of plan and promptness Of ac-
ton are what the people need and Will
demand. What particular form this pro-
posed legislation should take must be
left 10 the action Of the Congress.
have no pride Of opinion as 10 the
method, but / have the deepest concern
that the result shall be adequately bene-
fetal The only specific recommendation
would make Al present is that il be
given prompt attention, and that il be
not laid aside until some definite means
Of relief shall have been enacted into law
Operations of the Treasury.
The most noticeable transactions Of
the Treasury during the past fiscal year
have been the dealings with depositary
banks and the manner of disposing OF
accommodating revenues. For the first
quarter the excess of ordinary revenues
over expenditures, the deposit Of lawful
money in excess of national bank notes
redeemed. together with the proceeds Of
the Panama Canal bond sale, amounted
TO $40, 020, 6T.22 which was restored 10 the
channels Of trade by direct deposits in
national banks aggregating $40 9S6. 700 90.
increasing the balance therein 10 SPA
OSS.475.42 by October /. For the second
quarter the net excess from the first two
sources previously named was $50 23S, 0S9.
while the balance IN depositary banks to
the credit of the general fund had grown
TO S146, SO by January l. an increase
OF SO, 759, 3S2.51 since October J.
Thirty-twO Dollars Per Capita.
The monetary stock of the country in
creased $50. 5S4. i16 during the fiscal year
The growth in gold was Sl25. So. 1896. in
silver $13,6Z3 $50. and in national bank
notes $42. 6676.SS while there was a de-
crease Of $1.99S.OOO in Treasury notes of
1890. Al the close Of the fiscal year 1907
the money in circulation amounted to
81, 772 $50. 45j. or A per capita Of $3222 The
percentage Of gold 10 total circulation
was 1870.
''On June 60. 1906 there were - 1858
silver dollars in circulation; the number
distributed at government expense for
transportation during the last fiscal year
hut h..