Montour American. (Danville, Pa.) 1866-1920, 1908-03-26
ERRORS IN FINANCES
Lord WeIby Points Out Ameri-
cas- and Suggests a Remedy.
EXPERT COMMISSION NEEDED


rency, Advises Great British Finan-
eier-Tells 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 a 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 I'M
derstanding, particularly the United
States. To the New York Worlds spe-
cial correspondent at London he re-
Gently said:
II have read President Roosevelt's
recent message, and l 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 combined. The old centers
are closely interviewer. 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 a fail
ure. l will not say we did not feel its
effects.
"1t strikes me that you have serious
need of remedying your conditions.
You cannot go on having panic after
panic every few years. 1t 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. 1t is very easy to over
step the line and cripple 1t. Hasty, i'll
advised legislation often proves worse
than no legislation at all. l am a 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 i'm
prove it. If l may venture a sugges-
ton, would say that before adopting
hasty laws It might be well 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.
ITO 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 hasty action
'You will pardon my criticism that
one important thing you lack in the
United States is concentrated, forceful
public opinion. am speaking now in
reference to what l call your illegiti-
mate progress. Your people do not
seem to put into practical effect their
condemnatons. 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 inhict its punish
ments upon wrongdoers. This force
need not always come from the general
public. 1t may be confined to a small
circle.
"There is no law in England to pre-
NCAl bsillh nun as lAuCu Ol
its funds as its directors please to sup
porting any stock speculation or enter
ing RI ky undertaking But such
things quickly become known to other
bankers, and the practice is checked
by their disapproval.
"The position Of your trust compa-
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. believe, needs
remedying.
although the people of the United
States are exceptionally active and
yet they are curiously con-
in stamping out evil customs
that have gradually grown up. They
hesitate to remedy and are slow to
punish"