The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1908-06-19

the fore the question OF our banking
and currency system, the considera7
ton OF which became and pontinues
to be a subject of pressing and COM
manding importance In the midst
of unusual prosperity, with 6,69s ma
tional banks under direct supervision
and control of the national govern
ment, with paid UP capital of over
900 millions, surplus and undivided
prohts of $50 millions and an out
standing circulation Of $50 millions,
secured by United States bonds, ev-
cry dollar of which was worth its face
IN gold, with an unprecedented hold
ing. OF coin in the treasury of the
United States, yet sudden paralysis
seized the banks, national and state,
and they were either reluctant or I'M
able to respond to the ordinary and
legitimate demands of trade.
CONSERVATION prevailed, confidence
shaken, and nothing but the prompt
and heroic action of the secretary of
the treasury averted widespread and
serious catastrophe. President Roose-
VeIt well SAD III commencing the Sec
rotary of the treasury:
congratulate you upon the adj
mifable way in which you have hand
led the present crisis | congratulate
also those conservative and substan-
tlal business men who in this crisis
have acted with such wisdom and
public spirit. By their action they did
Invaluable service in checking the
panic which, beginning as a matter
of speculation, was threatening to de-
stroy the confidence and credit nee
essary to the conduct of legitimate
business
mo one who considers calmly can
question that the underlying con-
ditions which make UP our financial
and industrial we'll being are essen
TALLY sound and honest Dishonest
dealing and speculative enterprise are
merely the occasional incidents of our
real prosperity. The action taken by
you and by the business men in ques-,
ton has been of the utmost conse-
quence and has secured opportunity
for the calm consideration which must
inevitably produce entire confidence
in our business conditions"
That such disturbance should
have occurred under such circum-
stances furnishes the strongest evil
dence that there is something inner
emily defective in the system itself,
which can only be reached by thor
ough overhauling. But this system,
hastily inaugurated by Secretary
Chase during the exigencies of war,
while confessedly defective in it's in
ability to respond at all times to the
varying and exacting demands of
trade, yet during the forty-five years
of its existence has served a wise and
beneicent purpose.
The recent panic called the atten-
ton of congress to the necessity of
further legislation, and measure has
been passed providing for an emer-
gency currency of $500,000,000 to be
issued under certain conditions and
limitations, an authorization, it is be-
lieved, which will prevent the recur-
renee 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 forming to avail them
selves of the benefits ofEthis act 1t
is doubtful if the provisions of this
act will ever be invoked, as the ability
to supply $500,000000 additional cur
rency whenever needed will of itself
have a tendency to make its issuance
unnecessary.
In the meantime, however, the Re-
publican party is not Indifferent to
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 a monetary commission,
composed of 10 members of the two
houses of congress, clothed with pow
er to inquire into and report to COZ
gress at the earliest date practicable
what changes are necessary or desir-
able in the monetary system of the
United States or in the law relating
to banking and currency, and for this
purpose they are authorized to sit
during the sessions or recess of con-
gress, at such times and places as
they may deem desirable, to send for
persons and papers, to administer
oaths, to summons and compel the at
tendance of witnesses, experts and
other assistants as shall be necessary
to carry out the purpose for which
said commission was created and to
make SUCH lHNSSllSdllOilS dliu CAdHliH-
ations in this or other countries of the
subjects committed to their charge
as they shall deem necessary.
This commission has already or
ganized and entered upon its labors
land will diligently prosecute. its du-
ties with the hope OF formulating a
monetary system that will meet every
legitimate business need and promote
the prosperity of all of our people.
But in the broader field of the
worlds drama, where the nations are
actors, our country has taken con-
spicuous and commanding part. Hav-
ing become a world power, Our in
fluence is worldwide and always ex-
erted in the interest of peace and the
betterment of mankind. When the
dispute between Germany and France
regarding the right of control in Mo-
rocco threatened to involve all Eu-
rope in war, the active influence Of the
United States, both directly and
through its representative at the
conference at Algeciras, was a potent
factor in bringing about peaceful
solution.
The participation of the United
States in the pan-American conference
at Rio de Janeiro in August, 1906, and
the visit of Secretary Root to that
conference and to all the principal
,r;+;,ne countries of South America