Arizona republican., 1908-02-09

general government should be able to put itself in a position. through -he
 many agencies that it has to bring , bear upon conditions and requirsm snts of the country. financial and other
 wise which include of course the re- ports of bank examiners and Sta;isti
 | cal information always at hand. to
 determine with reasonable accuracy when and where government funds should and could be safely deposited for use in meeting legitimate urgency calls and demands calculated to serYe the best interests of all sections If the country. It will hardly be claimed by the most enthusiastic advocates of.
 remedial currency legislation that there is not sufficient money availa- ble at the present time satisfactorily to conduct the business of the ccun- try, or that there is likely to be any
 shortage for some time to come. | Therefore, it appears to me that. by
 the adoption of plan similar to the
 one l have outlined. the business h. 1 terests of the country would be req
 sonably sure at all times of having
 sufficient funds available for all legit- innate purposes. without additional leg
 islation other than what might be nec- I essary to make operative such q plan. | ard avoid the introduction of new and | experimental methods the result of ! which must of necessity be more or
 less problematlcal. The guaranteeing of deposits in national banks would
 secure for business uses the two or three hundred millions of dollars with | drawn from circulation by. frightened depositors, and the distribution of | government funds referred 10 would 1 furnish the elastic feature that seems to be desired. as the government would 1 have the power to expand and contract i the currency as might be found ncc- | essary and desirable, thereby retaining ! in the government the enormous power | to do good or evil, that would prob
 ably pass largely into other hands should either the Aldrich bill or the ! Fowler bill become a law. I realize 1 that there are many as a result of l existing conditions, who would object | to any plan calculated to enlarge or extend the powers Of the general gov | ernment in any direction. It might
 be considered wise to create an adyis- ory bureau to work in conjunction
 with the secretary of the treasury and | the comptroller, that would be a party 1 to passing upon the applications for deposits of government funds in na- | tional banks from time to time | throughout the country. with which to meet extraordinary conditions. The
 duties of such a bureau might emE | brace, among other things. the visiting | of different sections of our country | for the purpose of coming in contact and familiarizing themselves with To- cal conditions and requirements, con- ferring with bankers and business men generally. as well as consulting and advising with national bank examiners ! in the various districts under their | supervision.
 T would not wish to have it under stood that I think the suggestions I | have offered furnish an entire solu- | tion of the perplexing financial ques- | tion that is claiming so much atten- | tiOn at tine present time. but l do be- ! lieve that q plan somewhat along the ! lines I have indicated could be de- ! velOped. without departing materially | from policies now in vogue. that would serve all purposes for several years
 to come. giving ample time to formu- i late and present for serious legisla- | tive consideration some plan for final adoption that might possibly be bet | ter calculated to meet the enormous 1 financial requirements of the country | in the conduct of legitimate business, l including the development of vast and almost unlimited resources as yet un- | touched.
 T had no idea when l commenced
 this letter that l would string 1t out to such length. but l am in hopes you ' will find little something in it suf- ! ficicntly of interest to warrant you in wading through it. l realize that | the idea Of the government guaran- teeing deposits in national banks is not looked upon with favor, generally speaking. l cannot help but feel. how | ever when the government assumes control of the affairs of national banks
 to the extent contemplated in the na-
 tional bank act. it can afford to say to the people that money placed fin national banks is absolutely safe If national banks are not conducted so | dS Ap W dlI diil llit Stllcidl bpNti | in so declaring, they should be.
 After all. I think under existing circumstances it would be safer and better in every way if legislation on the subject were deferred while the
 business of the country is so badly upset. Judging from the trend of af-
 fairs. there appears to be little chance
 for improvement for some time. Con seGueruy. as previously suggested. ! there is. and will b., money in abun- dance for all legitimate purposes, crop moving and all, until q. decided
 change has taken place in tho pre-
 vaiing sentiment which is proving so disastrous to all kinds of business hurtful alike to employer and employc and in man,. cases ruinous.'
 MONEY VANISHED