Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-05-22
JOHNSON TALKS FOR REFORM
GOVERNOR MAKES ADDRESS TO
COTTON MEN AT RICHMOND.
Declares Change Is Needed in
Finances-Says Uncle Sam Is
Responsible for Conditions.

RICHMOND. Va. May 2.-The speech
OF Gov. johnson OF Minnesota last night
was the feature of the days session of the
convention of the American Cotton Manu- :
facturers' Association
Gov. Johnson dwef at length on the
wonderful development OF the cotton grow
ing and spinning industry OF the United
States. and predicted that soon the south
would have a practical monopoly of the
cotton milling business OF the world, as /.
now has In production
Speaking Of the great need Of adequate
and cheap capital for the development Of
American Industries, Gov johnson said:
The financial conditions of the cotton
industry demand broader national rec
oenition. Our country is today the great
est banking power on the globe. The
bank deposits and banking capital Of the
American people are in value the great
est financial force in the modern world.
Inc danger Is concentration in cOngest-
cd centers of speculation. We have the
greatest gold stock and circulating me-
dunn In the world. but it's congestion in a
Few reserve centers Is such that when the
south and west desire to use a part Of
their surplus to move their crops their
Just demand produces a panic In Wall
street. For this unnatural and dangerous
condition the government Is responsible in
two particulars:
For National Banking System.
First. In establishing national bank
ing system which concentrates the bank
ing reserves of the country in a few Gen.
sers: the second. in depositing the govern
ment funds in those congested centers in
stead of at the industrial points. where
the money is needed for the legitimate ne
of o,S fron q.
ton. These conditions are in the power.
as 1t is the duty. Of the government to
remedy and thereby provide banking
system for the whole people instead OF
for the bulls and bears of the stock ex-
change.
Improved routes and strengthened
public control of the means of transpor-
tation constitute the third great necessity
of your highest industrial development,
and your interest in this regard Is that
of the nation.
You need the development Of the in
ternal waterways Of America, now for
century almost neglected. Today the gov
eminent spends $25O.O00.OOO year on war
preparations and maintenance to guard
the nation against an imaginary foe. and
a petty $4,000 600 for the development
and maintenance of the greatest natural
waterway resources on the globe.
Duty Of Americans Today.
1T is the urgent opportunity and plain
duty of the American people today by i'm
provement and canalization of the streams
which empty into the Atlantic and the
gulf to develop forest rows of smoke
stacks upon the James. Savannah and
Chattahoochie TO the cotton fields. and
up the Mississippi and its tributaries to
Minneapolis, Pittsburg, Chicago and the
great lakes.
The necessity for firm public control
&c tH4 v~~fry t. A1 = IL.
entrenched in the American mind that
agitation is now less needed than a prac-
tica working plan for calculating that
control. States and nation are alike
aroused. The largest present problem is
to avoid conflict between states and ma
ton in defining the boundaries Of con-
troll. and the greatest danger now ap-
parent Is the temptation of the federal
government to attempt a Capitalization OF
all railway control in itself.
Minnesota has just passed through the
unfortunate experience OF witnessing the
setting aside Of federal lower court OF
three state legislative acts regulating and
reducing rates. and the sovereign power OF
the state has been arrested by a United
States marshal who with the approval OF
stopped the enforcement of state law.
Such a condition must be met with pa
thence and wisdom.
Prospered in Spite Of Tariff.
During the twelve years that have
elapsed since the panic Of 1sB3-98 the net
exports of domestic merchandise. or the
aggregate volume of the balance OF trade
in favor Of the United States, over and
above our foreign imports. reach the vast
total of 5000, 100000. and the net gold i'm
portations approximate OOO0O.OOO But
this trade balance and gold inflow repre-
ssent almost wholly the surplus agricul-
tural production Of the west and south.
which was accumulated by hard indus
try. without tariff protection or govern
ment bonus or special privilege of any
kind and in spite of Determinations and
tariff taxes of hostile character.
only last fall. when the Wall street
panic of 1gW7-OS sent call money to a crazy
height and the clearing house banks Of
the large centers ordered a general sus-
pension Of cash payment to depositors
except to meet small necessities. it was
the south and west again which produced
the magnificent trade balance that in
sixty days brought to our shores sos Co.,
600 of European gold for the relief of the
eastern money centers and the adjust
want Of o,rr unsettled finances