The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1911-09-29

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orary business disaster. But there are
/, many. and am among those. who
believe that protection Al the past
has been too high. and that ii is pos
sible to lower the tarifr SO az not to
interfere with business, give a living
rate Of protection to existing enter
prise and vet prevent excessive prices
growing out OF excessive rates. In
carrying out such a policy and rnaiY-
tanning such an attitude, 1t IL essential
that the interests OF business should
be guarded by close investigation in
to their needs as to a protective tar
1 tn. and this emphasizes the Importance
and vital necessity of the mainten-
ance Of tarin commission and OF it's
ascertainment Of the facts with re-
spect to business and the difference
between the cost Of production here
and the cost Of production abroad be-
fore tariff changes are made.
One Of the prominent and useful
features Of the administration Of the
government In Germany, ia Austria.
and in France is the existence of under
officials constituting tariff bureau or
commission who follow closely the
changes In trade in their own coun-
try, 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 gov
eminent with the utmost accuracy
what changes in the tarifr 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 the hope OF promoting
it's prosperity and expanding It's vol
ume. They would no more think OF
changing policy like that OF the pro-
tective tariff to free-trade policy By
one stroke, breaking down the bust
ness Of the country In many directions
than they would Of blowing up their
battleships or destroying their forth
ficationa.
We have had in the past two years
since the agitation and the excitement
growing out of the passage OF the
Payne bin, strong movement toward
the establishment of tariff board or
commission which, by furnishing ac-
curate information as to tariff mat
tiers and the comparative costs Of
foreign and home production In re-
II
should enable congress to act with
care toward the existing industries Of
the country and to save them as far as
1 possible In any changes that might
be made. Under circumstances which
1T is not now necessary for me to to
recount and by appropriations fur
nished by congress. ] have been able
to establish tariff board, and I have
Il a
| tariff measures framed without the
knowledge that within q few months
this tariff board can furnish; and I
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 Industries Of the country
could not be calculated.
Banking 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 mar
ket: that these national banks will
/ deposit bonds and float their notes
when money is needed, and viii with
draw the bonds and reduce the circu-
lation when the demand for money
is light. Such has not been the re-
suit. and 1t is due to the fact that
the bonds which were issued for the
purpose of enabling them TO be used
as deposits paid only Q per cent, a
rate which Is about per cent below
the regular market rate for govern
ment bonds In this country. and there
fore prevents the disposition and use
than the securing Of bank notes. This
| gives a stiffness TO the deposit and
withdrawal Of such bonds and rigid
ity to the amount Of currency depend
emit 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 in
creasing 1t reserve, accentuates the
| original cause for the contraction OF
the currency and doubles its force. The
control by each one OF the banks is
control by none Of them. and we And
a money famine growing. by the very
fact of It's 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 1t to. meet the exigency
arising at any time in demand for
money. If vested in one person or set
| Of persons, the business can be intel
l iigently done, panics avoided, and
money sufficient for the purpose Of
| business constantly kept on hand. The
present proposition OF the monetary
commission, which I believe will be
recommended to congress, Ia that this
authority shall be provided by q COM
| bination of all the banks OF the coun-
| try, reserving to the smaller banks a
power of selection greater than the
ratio between their capital and the
capital of the larger banks. in which
board or agency the government shall
have representative. not so 1t may
control, but SO that 1t 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 q
system is absolutely necessary for the
progress Of business in this country.
we must have system In which the
merchants have confidence that 1t will
be scientifically run. and with q view
only to the public interest.
I have thus reviewed four subjects
L.