The news-democrat. (Providence, R.I.) 1906-1909, 1908-01-10


assembly. presented today. is as follows:
To the Honorable the General Assembly:
For the second time IL becomes my duty
to communicate to you such matters of
public import as appear TO me relevant
and essential seldom have more import
ant measures and more splendid opportu-
mites been offered 10 any general assem-
bly,, and I trust that at the conclusion OF
the session of 1905 our people in general
may find cause for gratitude in the work
that has been done and the advancement
that has been made
Many of the suggestions that / now
make must necessarily be, II not wholly.
at least partly, in the nature OF repo-
tition OF the suggestions OF a year ago.
because the conditions and questions OF
that time are practically the same today.
BANKING LEGISLATION.
Certain incidents of the past few
months connected with the admnistra-
tion of one OF our financial institutions
have impressed upon us the absolute ne
cessity OF following the suggestions offer
ed last year ON this subject as well
those offered by my two respected pre-
decessors. The entire lack OF restraint on
the management and investment or mill
Hons OF dollars owned by those OF our
people In moderate circumstances was
never more sadly apparent than In Octo-
ber OF the year just past.
On June 30, 1907. there was, according TO
the returns made to the state auditor.
Si73 600 on deposit In the savings banks,
state banks. institutions for savings. and
trust companies fthe state Practically
one-half OF this vast sum was on deposit
IN the three largest trust companies of
the state. The failure OF one of them.
therefore, necessarily works a considera-
BILE and unfortunate influence. Had either
one of the other two OF these great in
stitutions not been in their usual excel
lent condition, the disaster to the state
would have been much greater In this
entirely unprotected condition OF affairs,
therefore, what is urgently needed is
law requiring close supervision Of all
the workings OF such Institutions; a law
which will thoroughly safeguard the in
terests OF the depositors, and at the same
time not unduly hamper or embarrass the
banking institutions.
AT the last session OF the legislature
commission of five was appointed TO con-
slider and prepare law covering this
subject. The commission has performed its
work diligently and thoroughly, and is
now almost ready to report. In view of
the high character of the men composing
the commission and the great care and in
dustry displayed by them. their report
should be given respectful consideration
by the assembly.
But however farsighted and sound may
be the legislation adopted, Il will be of no
value unless II is enforced by compe-
tent. energetic. and upright bank exam
liner. The most benefcent OF laws are fre-
quently nullified through unfaithful or in
different enforcement The greatest of
care therefore, must be exercised In the
selection of this official. IL Is not the
proper subject for the recognition of po-
litical services rendered TO any party or
to any clique The person selected must
fx. sxasix Alxr fVne Olsl in1 on N
any OF the individuals or corporations
whose actions he would be expected to
supervise He must be "a trained finan-
cIal man, knowing the banking business
thoroughly. the values and conditions of
securities and investments of every kind.
He must be a man possessing the cour-
age to take strong and determined ac-
ton In the face of business, political. or
other attractions.
l. therefore, recommend most heartily a
careful and thorough consideration of the
commissions report. which viii be sub
mitted in a short time. and the enactment
into law of an approved, modern and
strong, but fair, bank examiners act.
REPRESENTATION.
Both of the leading parties stand
pledged to an increased representation
for the cities and larger towns in the
general assembly. This has been, perhaps,
the most important reform urged for
years In the legislature of this state. No
commonwealth in the union has today so
unrepresentative and unfair "a system OF
legislative apportionment. our govern
mcnt, both state and national, was found
cd upon the principle that 10 the people
as "a whole belonged the right to govern.
Rhode Island long ago adopted the prin-
cple that to 10 per cent of the people be-
longed the right TO govern; and that In
order to govern, one must live In certain
sections of the state.
For example, TO quote an oft-used IL
lustration: Two towns possessing respec-
lively. In 1906 population OF 474 and TSe
have Just as much representation In the
state senate as two cities having at that
time population OF 1865 and 433Sl.
About II per cent of the people of the
entire state have n complete majority In
our senate, and can defeat or approve
such legislation as they see fit, irrespec-
tive OF the wishes or demands OF the
other s. per cent. This. Indeed. would be
little short OF burlesque on popular gov
ernment were II not so serious a matter
and II its evil consequences were not so
lamentably apparent
But while such a system Is a complete
perversion OF the idea of the rule Of the
people. the disparity along the line OF tax
alton Is even greater. The TWO cities
above mentioned pay In direct taxes for
the support OF the state government
$4,000 and $Sl,O42, respectively; while the
two towns above referred TO pay, respec-
lively. tho sums OF $500 and Sl029.
To declare that a system which per-
mIts OF a town paying 500 In taxes to
have as much representation IN the SEN
ate as the city which pays $4,000 Is tax
alton without representation. would be,
OF course TO repeat what has become a
well-worn truism. This condition OF af-
fairs cannot be- rcmedied too soon II our
state is TO maintain even the appearance
of q representative or a Republican form
OF government. IL is encouraging. There
fore. TO note the prospect for relief from
these conditions. The people, however.
will not be satisfied with anything short
OF bona flde relief. IL reform Is TO be
ATTEMPTED, lt ought 20 como primarily
through a reorganization OF the senate,
because Il IL In that body that the most
Riaring disproportlon exists. The house II
far from being representative, either OF
the population or the wealth OF the state.
but Il IS not 20 be compared 20 the sen
ate In that respect. Therefore. any meas
urc providing for a reorganization OF tho
houee but which leaves the senate as Ia