Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1908-06-18

banded its trade, and aided in keeping
the pledge of 1898 that the national
debt should be as sacred as the SOL
diers graves
That it has it's weaknesses is free
ly admitted. The defects of the sys-
tenn have been recognized from the be-
ginning by practically every secretary
of the treasury, and while remedial
changes have been made as these de-
fects have developed, yet the one CLAIR
ing fault, the want of elasticity has
continued and remains AS early as
1872 Hon. George S. Boutwell,. the then
secretary of the treasury, directed ats,
tention to this defect as follows:
The circulation of each bank is fix
ed arbitrarily by rule of law. The
aggregate circulation Is, therefore,
fixed sum- and consequently there Is
creased demand for money due occas-
ionally to extraordinary events at
home or abroad, and rising periodicals
~ with the incoming of the harvest.
A degree of flexibility in the
volume of currency is essential fos
two reasons: First. the business of the
department can not be transacted
properly if limit is fixed, and tina
power to raise the circulation above
or reduce it below that limit is denied.
A rule of this nature would compel
the secretary to accumulate a large
currency balance and to hold it, as
otherwise the credit Of the government
upon 1T would be at the mercy of
every serious business and political
revulsion in the United States
Use Large Sums of Money in Moving
Crops
Secondly, there is a necessity every
autumn for moving the crops withou:
delay from the south and west to the
ha hoy no ~ o, 70 -
EXPORT and consumption as wanted. In
the summer months funds accumulate
at the centers, but the renewal of bus
mess in August and September gives
employment for large sums and leaves
little or nothing for forwarding the
crops in October and November.
The problem is to find a way of in
creasing the currency for moving the
crops and diminishing it at once when
that work is done"
Secretary Window, in 1890, reiterat-
ed the warning
I'm my judgment the gravest defecy
in our present financial system is its
mand for money in this country is 50
irregular that an amount Of circula-
ton which will be ample during ten
months of the year will frequently
prove so deficient during the other
two months as to cause stringency and
commercial disaster. Such stringency
may occur without any speculative
manipulations of money, though, un-
fortunately, it is often intensified by
such manipulaitions.
The crops of the countr. have
reached proportions so immense that
their movement to market, in August
and September. annually causes q dan
gerous absorption of money.i The lack
of sufficient supply to meet the in
creased demand during those months
may entail heavy losses upon the
agricultural as well as other business
interests. Though financial stringency
may occur at any time and from many
causes, yet nealy all of the great
commercial crises in our history have
occurred during the months named,
and unless some provision be made to
meet such contingencies in the future,
like disasters may be confidently ex-
pected."
The recent panic called the atten-
ton of congress to the necessity OF
further legislation, and a measure has
been passed providing for an emer-
be issued under certain condi-
lions and limitations; and authors
cation, it is believed, which
will prevent the recurrence Of any
such disaster as befell the country last
fall. The secretary of the, treasury
has already taken the necessary steps
to give effect to this legislation, and
banking associations are already form
ing to avail themselves of the benefits
of this act. 1t is doubtful If the pro-
visions of this act will ever be invoke,
as the ability to supply s5O0,000,O00
additional currency whenever needed
will of itself have a tendency to mako
its issuance unnecessary.
In the meantime, however, the Re-
publican marty iS nOt ip6iffaro,,t ~
the necessity of further and COM
prehensive revision of our monetary
and banking system, and to that end
the congress Just closed authorized the
creation of modetary commission,
composed of IS members of the two
houses of congress, clothed with power
to inquire into and report to congress
at the earliest date practicable what
changes are necessary or desirable in
the monetary system of the United
States or in the laws relating to bank
ing and currency, and for this purpose
they are authorized to sit
during the sessions or recess
places as they may deem desirable
to send for persons and papers, to ad-
minister oaths, to summons and compel
the attendance of witness, experts,
and other assistants as shall be nee
essary to carry out the purpose for
winch Sdiu COiiliulSSlOn was Credteu,
and to make such Investigations and
examinations, in this or other coun-
tries, Of the subjects committed to
their charge as they shall deem nee
essary.
Monetary Commission is Already
Organized.
This commission has already or
ganized and entered upon it's labors
and will diligently prosecute its duties
with the hope of formulating mone-
tary system that will meet every legi-
Innate business need and promote tho
prosperity of all of our people.
But, in the broader field of the
worlds drama, where the nations are
actors, our country has taken a con-
spicious and commanding part Hav-
ing a world power, our influence Is
worldwide and always exerted in tta
interest of peace and the betterment Of
mankind. When the dispute between
Germany and France regarding this
right of control in Morocco threatened
to involve all Europe in war, the ac-
tive influence of the United States,
both directly and through it's repres-
entatiye at the conference at Algeciras
was a potent factor in bringing about