Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1907-12-18

Of their capital in notes Of given
kind, the issue to be taxed at SO high
rate rs TO drive the notes back when
not wanted in legitimate trade. This
plan would not permit the issue Of
currency to give banks additional
profits, but TO meet the emergency pre-.
scented by times of stringency.
II do not say that this is the right s
system. ! only advance II to empha.
size my belief that there Is need for
the adoption Of some system which,
shall be automatic and open TO ALI
sound banks, so as to avoid all possi-}
blity of discrimination and favorit-S
ism. Such n plan would tend to pref
vent. the spasms OF high money and{
speculation which now obtain in the|
New York market, for at present there
Is too much currency at certain seal
sons OF the year, and its accumulation
at New York tempts bankers to lend
1t at low rates for speculative pur-
poses. whereas at other times when
the crops are being moved there Is
urgent need for large but temporary
increase In the currency supply. 1t
must never be forgotten that this ques
ton concerns business men generally
quite as much as bankers. Especially
Is this true of stockmen, farmers and
business men In the west, for at pres.
ent Mt certain seasons of the year the
difference in interest rates between the
east and west Is from to 10 per cent,
whereas In Canada the corresponding
difference Is but per cent. Any plan
must of course guard the interests Of
western and southern bankers as care
fully rs II guards the interests of New
York or Chicago bankers and must be
drawn from the standpoints of the
farmer and the merchant no less than
from the standpolnts of the city bank.
er and the country banker"
again urge on the congress the need
Of immediate attention to this matter.
We need greater elasticity In our cur.
rency. provided, of course, that we rec.
| Ognize the even greater need OF safe
and secure currency. There must al.
/ ways BE- the most rigid examination
by the national authorities. Provision
should he made for an emergency cur.
rency. The emergency issue should
of course be made with an cfcctlvcl
guaranty and upon conditions care
! fully prescribed by the government
Such emergency issue must be bnsed
Oh adequate securities approved by the
| government and must &c iSSCCd underl
| heavy tax. This would permit cur
rency being issued when the demand
/ for II was urgent. while securing It's
retirement us the demand fell OFF. III
is worth investigating to deternsneI
whether officers and directors of ma.
tionul banks should ever be allowed tol
loan to themselves. tTrust companies
should be subject to the same supervi.
sion MS banks. Legislation to this effect!
should be enacted for the District of
! Columbia and the territories.
Yet we must also remember that
even the wlsest legislation on the sub.
ject can only accomplish n certain
amount. No legislation can by any
possibility guarantee the business com.
munity against the results of specula-
tive folly any more than II can guar
| antee an individual against the resulta
| of his extravaganza. When an indi-
vidual mortgages his house to buy an
automobile he invites disasters and
when wealthy men or men who pose as
such or are unscrupulously or foolish
~ eager to become such indulge In
reckless speculation, especially II 1t Is
accompanied by dishonesty, they jeor-
ardize not only their own future, but
the future of all their innocent fellow
citizens, for they expose the whole
business community to panic and dis
tress.
Revenue.
The income account Of the nation Is
in most satisfactory condition. For
the six fiscal years ending with the
LIST of July last the total expenditures
and revenues of the national govern
ment, exclusive Of the postal revenues
and expenditures, were, In round num-
bers, revenues 81, 100000 and ex-
penditures S3,2T5,OOO,OO0. The net ex-
cess Of income over expenditures, In
Guiding In the latter the S50,00O,OoO ex-
pended for the Panama canal, was
$50, 100000 for the six years, an aver
age OF about S31, 100000 year. This
represents an approximation between
income and outgo which 1t would be
hard to improve. The satisfactory
working of the present tariff law has
been chiefly responsible for this ex
cellent showing. Nevertheless there Is
an evident and constantly growing feel
ing among our people that the time Ii
rapidly approaching when our system
of revenue legislation must he revised