The morning journal-courier., 1908-02-05

tiC AplioN1HS stOnQlliOns lhut fi ei> upon bank discounts of each national bank be paid into the treasury or the United States, a tax ranging from mo- thing. if the loanable reserve IS ln- tact, to twenty or more per cent the tax to be in inverse ratio to the amount of the loanable reserve on hand.
 This would accomplish what IS ef- feeted by the Bank of England or the Bank of France when the gov ernors raise or lower the discount rate. This raising and lowering Of the rate of discount would be auto matic. It would perfectly regulate credit expansion and avoid the pollti- cal dangers of a huge central pahk and the tyranny of central bank man agers. Last. and not least, the pro ceers of the tax would go not into pri- vate pockets but into the public treasury.
 It can be objected that this founda- tion is of artificial stone instead or trap rock. This is true. But It IS obtainable, while an adequate reserve of gold is not without contraction that woulds completely wreck our in dustries It cannot be denied that this would make firm and safe base Ii would prevent dangerous expansion ot credit as the banks would ada tle lax to the discount rate. and thus credit as the banks would add the tax to the discount rate, and thus credit expansion would become in- creasingly expensive with its eXten- sion. It would give as much elastic ity as it is possible to give to money itself. It would largely prevent rapid and violent changes in prices and render speculation and gambling less attractive.
 Thus, without violent changes. financial system would be formed out of what we now have, such that dry nursing by multi mllionaires and meddesome interference of the treas ury department could be avoided. In judging of the probable success of such plan, it should be remembered that an overwhelming majority of bankers are not kiters and specula- tors, but are men who obey the law and willingly cooperate in whatever conduces to the public good.
 Tariff taxes are sometimes said to be collected from foreigners instead of our own people. But govern ment that takes from anybody, na- tive or foreign. more money than is necessary for proper administration IS engaged in robbery, If the above measures were adopted and the gov ernment could content itself with col lectlng no more money than admin istration requires, there would be no need and no power 10 meddle with the money market The disgrace full alliance of the government with realized wealth to the detrlment of every other kind of property and ev- cry form of labor would be dissolved
 The suggestion of Mir Bryan that the national treasury guarantee the 1 deposits in each National bank and tax the deposits of all the National banks the amount necessary to relm- purse itself would put an end to bank l runs that are caused hy fear, without ] any question But there would be | little fear or occasion for fear If the banks were known Co have the neces- ! sary reserves and If bank officials and ] directors were forbidden to loan to i themselves the depositors' money. That bank officials as a rule should not be allowed to judge of their own fitness as borrowers of the money they hold in trust is elementary.
 Tho financial evil like all other evils that af'lict the country. illus trates the wickedness of allowing privilege to trample upon common rights, Of all the forms of privilege that of allowing those whose chief interest in life is in money and claims for the future delivery of money and those. largely the same individuals who thrive upon the fluetuation of prices, to control tho money supply
 Is tho worst It Is largely through their juggling that almost the entire wealth of the country Is owned by q i handful of men
 President Roosevelt has done much for which Democrats can praise him He has endeared himself to the people by his evident hatred of evil doing That hatred of evil doing can be as sumed also of one or two of those suggested for the succession. But they are all, to the marrow of their bones. saturated with that Hamiltoni- anism which has corrupted the springs of our national life. However we'll mentioned, with their political viewpoint and associations they can do but little good If the government such as we have loved it and glorled in if Is to survive. liberty at home and so far abroad as our responsibility ex- tends, equal rights and a reign of law must supplant special privilege and personal government
 AUSTIN R FULLER