Arizona republican., 1908-02-09
THE NEED OF
 CELEBRATION
In the Enactment of Reme- dial Currency Legislation
Opinion of MT. F.M.Murphy Given to the Baltimore American.

The Baltimore American of recent
 date says;
 Mir. Frank Murphy of Prescott Ari-
 zona, who was at the Belvedere yes.
 terday, has long been acknowledged
 as one of the foremost men of that
 territory. in the development of which
 he has been auspiciously active. As
 a financier and builder of railroads he
 has been eminently successful. and ne has been the direct cause of the iu-
 vestment in his section of millions of
 eastern capital. He Is a native of
 Maine, and brother of Hon. Oakes
 Murphy. who was governor of Ari-
 zona and likewise delegate in congress for many years. and who is one of the
 most influential and well liked of western republicans.
 Speaking not merely as a banker
 said Mir. Murphy. but with d view to the interests of all classes, 1 hope con- gross will proceed cautiously ani with the utmost deliberation in the enact
 ment of any financial measure. I do
 not think that either the Aldrich bill
 or the Fowler bill should pass in their present forms If they did tho wills
 under which we now suffer w0ull be Imagnified whenever the same condi-
 tions arose. There Is no reason. how
 ever. that the United States treasury
 may not come to the relief of the
 country when financial crises appear.
 Let the government institute a rigid.
 ironclad system of examination or na- | tional banks. which if has the right
 to do. and then after a banks sol
 vency has been indisputably shown,
 let it be given $1,0O0,0G or $5.OOO. .OO0
 of government money. no matter
 whether it is located in Boston or
 Omaha, in New York or Arizona.
 1 "I mean that there sholud be an
 equitable geographical distribution of
 these deposits. so that every section
 would have plenty of money in crop moving time or other period of need.
 When this period has passed the pub- 1 lie money can be withdrawn The de-
 tails of such a system are not hard
 to work out, and it is clear to my
 mind that by this policy we can give
 to our financial system the needed | flexibility."
 In reply to a letter from Mir. E. B.
 Smith of the Baltimore American. af-
 ter his return to New York. MT. Mur- phy entered more fully into the sub
 ject of remedial currency legislation
 in the following letter:
 Before the government should or
 could be expected to deposit funds
 with the various national banks | throughout the country for crop nov | ing purposes br otherwise, in excess
 of what is customary under ordinary 1 Rl hn arrssI | should be made. as mentioned. of
 banks making application for govern ment deposits. and an application pre- sented to the secretary of the treas
 ury through the comptroller. or direct
 to the treasury. in which case a cer- tified copy should be sent to the comp
 troller. Such application should set forth the condition and financial
 standing of the bank, presenting clear | ly the reasons for and justification of | the application, as well as the prob
 able date when the bank would be prepared to return to the government | funds that might be deposited as q | result of said rcquest,-all of which should have the approval of the na- ttonal bank examiner. or some com | petent person selected for the purpose l Then, if the comptroller and the secre-
 tary of the treasury were fully satis- | fled as to the reliability Of the bank and the justification for making such q request, it would appear to me 10 be perfectly proper and very desira- ble that the government should re- spond favorably providing funds were available for the purpose, making such charge as would cover all expenses connected herewith, and stipulating such conditions as might be found necessary and consistent It will be apparent that if some such method were adopted the financial assistance | that the government is called upon to render from time to time would be distributed where most needed and most helpful Where the government. as is the case under our national bank ing system, exercises or has the right to exercise supervision, so to speak. over national banks, it seems to me that it is not too much to ask or eX- pect that the right should be fully utilized. and if properly applied, the gOvernment could safely go a step | further and guarantee the deposits in national banks, imposing, if you please. an appropriate tax that would cover such additional expense as the gov ernment might be called upon to in- cur. directly or indirectly, in carrying out such d policy. and insuring the government against possible loss. 1t has been claimed that during the re- cent panic enormous sums of money were withdrawn from banks and cir culation by depositors who had become | frightened, for reasons justified or otherwise. which fact, taken together with the unusual requirements due to great business activity of all kinds | throughout the entire country. as re- suit of unprecedented prosperity gen orally recognized. developed a condi- 1 tion to meet which funds were not available. I submit. if it is true th3. funds were withdrawn from banks and circulation to the extent claimed. that
 the money so withdrawn. had it re-
 mained in use, would have prevented | the disastrous panic we have just passed through, and that a similar condition could never again arise if the