The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-09-29


their position can be supported in the
slightest They seem to think that there
ought to be some measure making Legal
the control Of competition and limited
monopoly, some statute enacted which shall
establish line between those monopolies
that are reasonable and those that are not
those that are benevolent and those that are
unconscionable. No such line Ia possible
and the supreme Court has expressly SC
decided Mourning over a condition which
Il inevitable is useless. and until they realize
that their views in this regard must be
radically changed their complaints must fall
upon deaf ears.
TIRE TRUSTS ABROAD
have seen argume nts based upon the
attitude of foreign Governments toward
great enterprises in which il is pointed out
that they have encouraged. fondled md
protected combinations of this character.
That is true. There is tendency among
some foreign Governments to encourage
what they call trusts, to take part them
serves In the management Of the trusts.
10 hS prices and TO depend upon Govern
mental control to secure their reasonable
conduct but such system with us Is abso-
lutely impossible. and II might as well be
understood. The countries to which refer
ence is made are veering toward State
socialism This indeed If competition
Ia to disappear is the logical escape from
the evil OF private monopolies. because
II private companies are to be allowed TO
manage everything and fix prices then there
is every reason why the control thus exer-
cised by them should be transferred from
them to the Government. and this is state
socialism.
Third-with respect to tarin laws The
business OF the country to-day rests upon
the protective tarin basis. Every one knows
this. and every one must be aware that
change of tariffs In such a way that those
businesses that are dependent upon pro-
lection for their existence shall lose II must
injure present conditions in all business
whether dependent on the tariff or not
The change therefore from protective
tarin to a tariff for revenue only Is ncces
sarily hostile to existing business and must
lead to business depression and AT least
temporary business disaster. But there are
many. and | am among those. who believe
that protection in the past has been too
high and that II is possible TO lower the
tarid 40 as not to interfere with business.
give living rate OF protection to existing
enterprise and yet prevent excessive prices
growing out of excessive rates. In carrying
out such a policy and maintaining such
an attitude it is essential that the interests
of business should he guarded by close
into their needs as to a pro-
tective tariff. and this emphasizes the i'm
portance and vital necessity OF the main
tenancs OF q tariff commission and OF its
sscertainment OF the facts with respect
TO business and the difference between the
cost OF production here and the cost of pro-
duction abroad before tariff changes are
made.
ErRoPE's TARIFF BUREAUS.
One Of the prominent and useful features
OF the administration OF the Government
in Germany. in Austria and in France Is the
existence Of under officials constituting a
tarih bureau or commission who follow
closely the changes in trade in their own
country. and in other countries through
consular bureaus and otherwise, and who
keep In constant readiness for use digested
mass OF information which enables them
to advise the Government with the utmost
accuracy what changes in the tariff law
would help the trade of their own country.
and what the effect of the changes will be-
They exercise the closest guardianship
over the business Of the country, with tho
hope OF promoting its prosperity and ex-
panding its volume. They would no more
think Of changing a policy like that OF the
protective tariff to free trade policy by
one stroke. breaking down the business Of
the country in many directions. than they
would of blowing up their battleships or
destroyinR their Notifications
We have had In the last two years, since
tho agitation and the excitement growing
toward the establishment OF q
tariff board or commission which. by fur
accurate Information as to tariff
matters and the comparative cost OF foreign
and home production in respect TO manu-
features and products, should enable Con-
gress to act with care toward the existing
industries of the country and TO save
them as far as possible in any changes
that might be made. Under circumstances
which II is not now necessary for me 10
recount and by appropriations furnished
by Congress ! have been able 10 esta blish
a tariff board and have declined to pro-
mote the passage of tarif measures framed
without the knowledge that within few
months this tarif board can furnish. and
! have done so because I thought the busi-
ness of the country was entitled to better
treatment than the shpshod framing and
hasty enactment Of measures the injurious
effect of which upon the industries Of tho
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 according 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 for money Is light. Such has
not been the result, and il is due to the fact
that III. bonds which were issued for the
purpose of enabling them to he used as
deposits paid only per cent. a rate which
il about | per cent below the regular mar
ket rate for Government bonds in this
country and therefore prevents the dis
position and use Of the bonds for any other
purpose than the securing of bank notes
This gives stiffness to the deposit and
of such bonds and rigidity
TO the amount of currency dependent on
them that deprives the system OF the elias.
ticity which is desired
More than that. the independent action
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 money famine growing
by the very fact OF its existence more and
more pressing and panic producing.
There ought to be some central authority
that could take over the quick assets OF the