The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-09-28

and home production i'm respect to
manufacturers and products, should
ENABLE Congress to act with care to-
ward the existing industries of the
country and to save them as far as pos
sible in any changes that might be
made. Under circumstances which il
is not now necessary for me to recount
Iany by appropriations furnished by
Congress. | have been able to estab-
lish tariff board. and have declined
to promote the passage of tariff mea-
sures framed without the knowledge
that within few months this tariff
board can furnish; and | have done
so because | thought the business of
the country was entitled to better
treatment than the slipshod framing
and hasty enactment of measures the
Injurious effect of which upon the in
dustries of the country could not be
calculated.
Lame Currency System.
Fourth, and finally, we have a very
lame banking and currency system.
The theory of the issue of bank notes,
based on the deposit of Government
bonds by each national bank. is that
this will increase and decrease accord
ing To the needs of the money market;
that these national banks will deposit
bonds and float their notes when money
is needed. and will withdraw the bonds
and reduce the circulation when the
demand is light. Such has not been
the result. and IL is due to the fact
that the bonds which were issued for
the purpose of enabling them To be
used as deposits paid only per cent,
a rate which is about 1 per cent below
the regular market rate for Govern
nent bonds i'm this country. and there
fore prevents the disposition and use
of the bonds for any other purpose
than the securing of bank notes. This
gives a stiffness to the deposit and
withdrawal of such bonds and a rigid
llty to the amount of currency depend
ent on them that deprives the system
of the elasticity which is desired.
More than that. the independent ac-
| ton of each bank when money grows
Tight. i'm reaching out for cash and in
Icrcasing it's reserve. accentuates the
original cause for the contraction OF
the currency and doubles it's force. The
control NV each one of the banks is q
control by none of them. and we fine
a money famine growing. by the very
fact of its existence. more and more
pressing and panic-producing.
Panics Can Be Avoided.
| There ought To be some central au-
Ithority that could take over the quicf
assets of the banks in the form o.
business paper and issue bank notes
on the faith of il to meet the eXigencl
larising at any time i'm n demand fol
money. If vested in one person or Sc
lof persons, the business can be intel
Iligcntly done, panics avoided, and mo
Incy sufficient for the purpose of bust
ness constantly kept on hand. Th'
present proposition of the Monetary
Commission, which / believe will ~
recommended to Congress. is that thu
AUTHORITY shall be provided by a com
lbination of all the banks of the country
Ireserving to the smaller banks powe
Of selection greater than the ratio be
Tween their capital and the capital o
1.-The larger banks. in which board o
lagency the Government shall have
Representative. not so that IL may con
ltrol. but so that 1t may have voic
in the management.
/ do not go into the details excep
To say that they must be caretull
worked out FOR the purpose of prevent
ling the political crowd of the monetar
lsituation, or control by the large bank
absolutely necessary for the progress
of business in this country We mus
have system In which the merchant
lhave confidence that IL will be scien
ltincally run, and with a view only
1.-THE public interest.
Should Encourage Business.
have thus reviewed four subject
lin which the action Of the Governmcr
has a direct relation to business. an
II have discussed them with a view
the conclusion which | would now liz
TO state. The evils which the inter
state-commerce law and the antitrui
, law were adopted to correct are In II
, process Of being remedied. They wei
l - ----------.-.. l------ $500. $3.50