Arizona republican., 1911-10-03

Fourth, and finally, we have yer!
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 tina
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 mon
ey is needed. and will withdraw the
bonds and reduce the circulation wher
the demand for money is light. Such
has not been the result, and it is due
to the fact that the bonds which were
issued for the purpose of enabling them
to be used as deposits paid only pei
cent, a rate which is about l per cent
below the regular market rate for gov
eminent bonds in this country, and
therefore 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 rig
idity to the amount of currency depen-
dent 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, in reaching out for cash and
increasing its reserve, accentuates the
original cause for the contraction of
the currency and doubles its force.
The control by each one of the banks
is a control by none Of them, and we
find a money famine growing, by the
very fact of its existence, more and
more pressing and panic producing
There ought TO be some central au-
thOrity that could take over the quick
assets of the banks in the form of bust
ness paper and issue bank notes on the
faith of It to meet the eXigency aris-
ing at any time in a demand for mon
ey. If vested in one person or set of
persons. the business can be intelli-
gently done, panics avoided, and money
sufficient for the purpose of business
constantly kept on hand. The present
proposition of the mOtetary commits
sion. which 1 believe will be recon-
mended to congress. is that this au-
thOrity shall be provided by a COM
bination of all the banks of the coun-
try. reserving to the smaller banks a
power of selection greater than the ra-
ito between their capital and the capt.
tai Of the larger banks. in which board
or agency the government shall have a
representative, not so that il may con-
troll, but so that it may have a voice
in the management
! do not go into the details except
to say that they must be carefully
worked out for the purpose OF pre-
venting the political control Of the
monetary situation, or control by the
large banks of Wall Street Such a
system is absolutely necessary for the
progress Of business in this country.
We must have a system in which the
merchants have confidence that it will
be scientifically run, and with a view
only to the public interest.
I have thus reviewed four subjects
in which the action of the government
has a direct relation to business and
| have discussed them with view to
the conclusion which I would now like
to state. The evils which the inter
state-commerce law and the antitrust
law were adopted to correct are in the
process of being remedied. They were
evils that required hostile legislation
10 stamp them out, and need constant
vigilance in the future TO prevent their
recurrence. The difficulty is that the
indignation caused by the evils aroused
a spirit of antagonism and bitterness
which is now difficult TO allay, and
which manifests itself in action OF a
hostile character whenever occasion
arises. The same thing may be said
Of the excessive tariff. The fact that
banking and currency necessarily con-
Germs banks and those institutions that
gather together money attracts the
hostility OF men in politics. who thrive
by stirring up envy and hatred and
who live chiefly upon the denunciation
of the Industrious. the thrifty. and the
successful in business
| have considered these points with
a view to an appeal to the public In
behalf Of reasonable. moderate action
and treatment for the purpose of en-
couraging the investment of capital
and of promoting prosperity. l depre-
cate vindictive feeling against railway
corporations. against the competing
parts of trusts after they have com
piled with DEGREES of courts disinte-
grating them. against a reasonable
treatment Of the businesses dependent
on the tariff. or against the solution OF
the Monetary question, which appeals
to all reasonable and experienced men
We in this country are all in the
same boat Speeches made in one part
of the country to arouse the people OF
that region against the enterprises or
business of another are made by the
blindest men. Let there be prostra-
ton Of business in one large section
and that prostration will spread quick
ly to all the rest.
What makes men happy? What furn-
ishes shoes and clothes and good,
wholesome food to the afmily OF father
and mother and children but prosper
Gus times. in which labor Is in high
demand, wages are good, sales are
plenty, prices are normal. and every
body is sharing in the general pros
perity?