The Topeka state journal., 1911-09-29

impossible, and it might as well be un-
derstood- The countries to which ref
erence is made are veering toward
state socialism This, indeed. if com
petition is to disappear, is the logical
escape from the evil of private mono
poles, because If private companies
are to be allowed to manage every-
thing and fix prices, then there is every
reason why the control thus exercised
by them should be transferred from
them to the governme ent, and this is
state socialism
Third With respect to tariff laws
Inc Inc business OF the country today rests
upon the protective tariff basis. Every
one knows this. and everyone must be
aware that a change of tariffs in such
a way that those businesses that are
dependent upon protection for their
existence shall lose it must injure pre-
sent conditions in all business, whether
dependent on the tariff or not The
change, therefore, from protective
tariff to tariff for revenue only is
necessarily hostile to existing business.
ana must lead to business depression
ana at least temporary business dis
aster- But there are many, and I am
among those, who believe that protec-
ton In the past has been too high, and
that it is possible to lower the tariff
SO 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 es-
sential that the interests of business
should be guarded by close inyestfsa-
ton into their leeds as to a protective
tariff, and this emphasizes the import
ance and vital necessity of the main
tenance of a tariff commission and of
its ascertainment of the facts with re-
spect to business and the difference be-
tween the cost of production here and
the cost of production abroad before
tariff changes are made.
Tariff Bureau.
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
oIhclals constituting tariff bureau or
commission who follow closely the
changes in trade in their own country,
and IN other countries through consul
lar bureaus and otherwise. and who
keep IN constant readiness for use a
olgested 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 guardian
ship over the business of the country
with the hope of promoting it's pros
perity and expanding 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 battIeshfps
or destroying their fOrtif1cations
we nave had in the past two years,
since the agitation and the excitement
growing out of the passage of the
Payne bill, a strong movement toward
the establishment of a tariff board or
commission which, by furnishing accu-
rate information as to tariff matters
and the comparative costs of foreign
and home production in respect to
manufactures and products should !
enable congress 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 it |
is not now necessary for me to recount |
ana by appropriations furnished by |
congress, have been able to establish |
a tariff board, and have declined to /
promote the passage of tariff measures
framed without the knowledge that !
within few months this tariff board |
can furnish; and 1 have done so be- |
cause I thought the business of the /
country was entitled to better treat !
ment than the slipshod framing and |
nasty enactment of measures the in |
furious effect of which upon the indus
tries of the country could not be call
culated.
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
bends 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
q and f01 t.
Such has not been the result and it is
1ue to the fact that the bonds which
were issued for the purpose of enabl-
ing them to be used as deposits paid
only per cent, at a rate which is
about 1 per cent below the regular
market rate for government bonds in
his country, and therefore prevents
the disposition and use of the bonds
Tor any other purpose than the secur-
ng of bank notes. This gives a stiff
ness to the deposit and withdrawal of
such bonds and a rigidity to the
amount of currency dependent on
hem that deprives the system of the
elasticity which is desired
More than that, the Independent ac-
ion of each bank when money grows
light, in reaching out for cash and in
its reserve, accentuates the
original cause for the contraction of
he currency. and doubles it's force. The
control by each one of the banks is a
Dy none OF LheIn, and we find
4 money famine growing, by the very
act of its existence, more and more
pressing and panic-producing
To Avoid Panics
There ought to be some central au-
hority that could take ever the quick I
Lssets of the banks in the form of
business paper and issue bank notes
m the faith of it to meet the exigency s
rising at any time in a demand for
money. If vested in one person or set t
f persons, the business can be inteui- {
emily done, panics avoided, and money I
efficient for the purpose of business