The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1908-06-20


progressive legislation in the interests
of this class OF our fellow-ctizens.
THE COUNTRYS FINANCES.
Speaking OF the country's finances,
the Senator said:
Our recent financial disturbance chal-
lengcd the soundness OF our monetary
condition and brought 10 the fore the
question OF our banking and currency
system. the consideration OF which be-
came and continues 10 be subject of
pressing and commanding importance.
In the midst OF unusual prosperity,
with COOS national banks under direct
supervision and control OF the national
government. with paid-up capital OF
over 900 millions, surplus and un-
divided profits Of $50 millions and an
outstanding circulation oi 63o millions,
secured by United States bonds. every
dollar ~ which was worth its face in
gold: with an unprccedcnted holding
,. oi coin III the Treasury of the United
| States. vet sudden paralysis seized the
banks. national and state, and thcs
were either reluctant or unable 10 re-
| ,pond to the ordinary and Legitimate
demands for trade
' CONSERVATION prevailed. confidence
, shaken. and nothing but the prompt
and heroic action oi the Secretary OF
the Treasury avcrted a widespread and
serious catastrophe
That such a disturbance should have
occurred under such circumstances fur
, uiShc> the strongest evidence that
there is something inherently defective
in the system itself. which can only be
, reached by a thorough ovcrhauine.
Int this system. hastily inaugurated by
Secretary Chase during the cxgencies
ni war, while conicsscdly defective in
u, ability To- respond at all times TO
the varying and cxacting demands m
, trade yet, during the 4s years oi its
rN,>'cncc. has served wise and hcnc-
llccnt purpose.
Under il the public credit was re-
, stored and advanced until our bonds
] .loat at a lower rate oi interest than
those oi any other nation Under it
specie payments. were resumed. the
gold standard established and main
tanned. and every paper dollar issued
convertible into coin. Under this sys-
TEN questionable and worthless state
bank issues were driven ont of circu-
| lation. supplantcd by national cur
rcncy ~ unpuc>riuncd character and
| stability
| While other countries have added TO
their burden ~ debt. with an increased
rate oi interest thereon. this nation
ha, paid of r,4ol millions oi lis obli-
gatiogs and the present administra-
tion has csscncd the volume oi our in
dcb,cdncsS by SfoL ,62S. and in It's
rtiunding operations has reduced the
annual interest charge from S3o.77I.-
l6S to S2r.toLio6
During the period 81 its existence.
with aggregate deposits 81 g billion.
the average loss has been only onc-h half
ni per cent,
The national banks have served a
hcnchccut purpose in uplifting the
credit ot the government in lcsscning
the burden 81 taxation: in securing
sound and safe CURRENCY. that floats at
par IN nur own country rs well as in
every commercial nation in the world
II has developed the resources ni the
country. extended its industries. ex-
uandcd il, trade and aided in keeping
the pledge 81 1893. that the national
debt should be rs sacred as the sol
, dicrs' graves
That il has its weaknesses is freely
admitted The defects Of the system
have been recognized from the begin
ming hv practically every secretary Of
the trcasur" and while remedial
changes have been made as these de-
/ fccts have developed. vet the one plar-
ing fault--ih want II clasticitv-has
continued and remains
CURRENCY REFORM.
The recent panic called the atten-
ton uf Congress 10 the necessity OF
further legislation. and a measure has
been passed providing for an cmer-
gency currency oi Ssoo,ooo,ooo to be is
sued under certain conditions and limi-
tatiuuS, an authorization, it is believed.
which will prevent the recurrence Of
any such disaster as bcicll the country
last fall. The Secretary of the Treas
try has already taken the necessary
steps to give relief to this legislation,
| and banking associations are already
forming To avail themselves Of the
| benefits of this act II is doubtful iE
the provisions oi this act will ever be
invoked, as the ability To supply $500
oOoooo additional currency whenever
needed will Of itself have a tendency
, 10 make its issuance unnecessary.
In the meantime. however, the Re
J publican party is not indifferent to the
necessity for a further and comprchen-
Sivc revision oi our monetary and
banking system. and TO that end the
| Congress Just closed authorized the
creation of r monetary commission,
composed Of IS members Of the two