Waterbury evening Democrat., 1908-03-07
ERRORS IN FINANCES
Lord WeIby Points Out Ameri- ca's and Suggests a Remedy.
EXPERT COMMISSION NEEDED

Let It Frame Laws to Improve Cur-
 rency, Advises Great British FinaN~
 cier-TeIIs of the Danger In Having
 Panic After Panic.
 No man stands higher in the world of financial science than Lord Welby. He was Gladstone's right hand adviser in financial affairs. AS member of the first London county council he es- tablished the existing system of financ- ing the metropolis. For score of years, as permanent undersecretary of the treasury, he practically con trolled England's financial affairs. Re- tired now, he watches the world with the keen observance of intimate un- derstanding, particularly the United States. To the New York Worlds spe- cial correspondent at London he re- gently said:
 T have read President Roosevelts recent message, and I think Europe regards him as man of great force and ability and has confidence in his absolute integrity. You have great problems to solve and conditions to remedy. We have an interest in what you do. Fifty years ago the financial world was divided into separate money centers. Slow means of communica- ton caused each capital to be depend ent to a great extent upon its own re- sources.
 Now, however, the entire financial world is cont bined. The old centers are closely interwoven. What affects one affects the other. Therefore your financial panic and its causes are of much interest to us in London. If our financial structure had not been very sound I hesitate to think what might have happened to us at the time of your October crash. As it was we pull ed through practically without fail- ure. I will not say we did not feel it's effects.
 Tt strikes me that you have serious need of remedying your conditions. You cannot go on having panic after panic every few years. It weakens both your prestige and your structure America has wonderful natural re- sources and has made wonderful prog ress. We divide that progress into two classes-the legitimate and the illegiti- mate The legitimate you must care fully foster It is very easy to over step the line and cripple it. Nasty, ill advised legislation often proves worse than no legislation at all am firm believer in liberalism, in freedom of action, of too few rather than too many hampering laws, and, having found the best remedy, apply it.
 'There seems to be general agree ment that your currency system has proved inadequate, and various legis- lative measures are proposed to im- prove 1t. If l may venture a sugges- tion, would say that before adopting nasty laws it might be we'll to get the advice of an expert commission on what is best to be done. Choose a body of men-distinguished men who understand the subject thoroughly and, above all, men who have the confidence of the public-and let them draft the needed reforms. You have men who are above personal interest
 "To my mind, one of the greatest evils of any nation is the influence of pernicious lobbying in behalf of spe- cial interests Having obtained the rec concentrations of your experts. enact legislation in accordance. Then the chances are that you will have fewer mistakes to correct than might happen after nasty action.
 You will pardon my criticism that one important thing you lack in the United States is concentrated, forceful public opinion I am speaking now in reference to what call your illegiti. mate progress. Your people do not seem to put into practical effect their condemnations. They permit evils to continue and patronize them because of the temporary profits they derive. They do not always withdraw their support and frown down upon practices that are wrong. You need that kind of pub. lie opinion which will infiict its punish. ments upon wrongdoers. This force need not always come from the general public. It may be confined to a small circle.
 There is no law in England to pro vent a bank from devotInS as much of its funds as it's directors please to sup porting any stock speculation or enter ing a risky undertaking. But such things quickly become known to othel bankers, and the practice is checked by their disapproval.
 ''The position of your trust eomps nies, combining banking with trustee ship. seems strange. You have plenty of banks to afford ample banking ia cilities without the trust companies which appear to enjoy rather wide lat itude. This condition, I believe, needi remedying.
 "AIthoGgh the people of the United States are exceptionally active and progressive. yet they are curiously con servative in stamping out evil customi that have gradually grown up. The, hesitate to remedy and are slow t punish.-
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