The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1908-06-17

floats at par in our own country as
well as in every commercial nation
of the world 1t has developer inc
resources of the country, extended us
industries. EXPANDED its trade, anu
aided in keeping the pledge OF 1925,
that the national debt should De as
sacred as the soldiers graves
Currency System Needs Elasticity:
THAT il has its weakn esses Is
freely admitted The defects or the
system have been recognized from
the beginning by practically every sec
retary of the treasury, and WnliS
remedial changes have been made as
these defects have developed, yet the
one glaring fault, the want OF elaslic-
ity, has continued and remains AS
early as 1872 Hon. George ). Bout
well, the then secretary. OF the treas
ury, directed attention to this ueIect'
as follows:
THE circulation of each bank is
fixed arbitrarily by rule OF law
The aggregate circulation is there
fore. a fixed sum, and conSequeHtiy
there is practically no reserve to meet
the. increased demand for money
due occasionally to extraordinary
events ar home or abroad, and arts
ing periodically with the incoming
of the harvest. A degree OF
fiexibiIity in the volume OF currency
is essential. The business of the de-
partment can not be transacted prop
erly if a limit is fixed, and the power
to raise the circulation above or re-
duce it below that limit is denied.
81 There Is necessity every au-
tumn for moving the crops without
delay from the south and west to the
seaboard that they may be in hand
for export and consumption as want
ed. In the summer months funds &C
cumulate at the centerS, but the re-
newal of business in August and
September gives employment for
large sums and leaves little or moth
ing for forwarding the crops in DC
problem is TO find a way of increas-
ing the currency for moving the
crops and diminishing it at once
when that work is done
Secretary Windon, in 1890, reiter-
ated the warning
In my judgment the gravest de-
feet in our present financial, system
is its lack of elasticity.
THE republican party is not in
different to the necessity OF further
and comprehensive revision of our
monetary and banking system, and
to that end the congress just closed
authorized the creation OF a monetary
composed of IS members
of the two houses of congress, clothed
with power to inquire into and re-
port to congress at the earliest date
practicable what changes are neces-
sary or desirable in the monetary
system of the United States or in the |
1 ,a1o
rency, and for this purpose they are |,
authorized to sit during the sessions |
or recess Of congress- at such times |
and places as they may deem desir- |
able, to send for persons and papers. |
to administer oaths, to summons and 4
compel the attendance of witnesses, i
experts. and other assistants as shall 4
be necessary to carry out the purpose
for which said commission was ere
ated, and to make such investigations
and examinations, in this or other
countries, of the subjects committed
to their charge as they shall deem
necessary.
This commission has already Or
and entered upon its laboTs
and will diligently prosecute it's 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
He concluded with review of the
efforts of the state department and
showed the increased standing and I
position of the United States among
foreign countries, finishing with:
Roosevelt Peace Maker.
But the browning act in this
drama was that in which the presi-
dent himself took the Initiative, halted
the armies of Russia and Japan,
bringing about an honorable. and, it
is to be hoped, enduring peace.
yet nothing has added so much
to his just fame as mis- persistent and
irrevocable refusal to break the I'M
written law of the republic by accept
ing a nomination for a third term.