Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1912-12-06

in our favor-that of the excess of ex-
ports over imports-will exceed $780,
100000.
1t is a year Of bumper crops The
total money value Of Farm products
will exceed $1,000, 100000. 1t is a year
when the bushel or unit price Of agri-
cultural products has gradually fallen,
and yet the total value OF the entire
crop is greater by over $1,000, 600
than we have known in our history
Condition of the Treasury.
The condition of the treasury is very
satisfactory. The total interest bear
ing debt is 1868. az, no, Of which $134,-
631 $50 constitutes the Panama canal
loan. The noninterest bearing debt is
S37S,301, 2S4.9O, including $346,6S1 .016
of greenbacks. We hare in the treas
ury S15O,OOO,OOO in gold coin as a re-
serve against the outstanding green
backs; and in addition we have cash
balance in the treasury as a general
fund Of S167, 152, 1889. or an increase
of S26,975552 over the general fund
last year.
Receipts and Expenditures.
For three years the expenditures Of
the government have decreased under
the influence of an effort to economic.
This year presents an apparent excep-
ton. The estimate by the secretary of
the treasury of the ordinary receipts,
exclusive of postal revenues, for the
year ending June 80. 1914. indicates
Y 30 G-In OnO nO0
The sum Of the estimates of the ex-
/ penditures for that same year, exclu-
| sive Of Panama canal disbursements
and postal disbursements payable from
/ postal revenues, is S732. 100000, indi-
/ eating a deficit of S22,OO0,000.
For the year ending June 30, 1913,
| similarly estimated receipts were 1857 :
! 100000, while the total corresponding
I estimate of expenditures for that year,
submitted through the secretary of the
/ treasury to congress, amounted to
| SG56, 100000. This shows an increase
/ of S76.OOO,O0O in the estimates for 1914
over the total estimates OF 1913.
Banking and Currency System.
A time when panics seem far remov-
ed is the best time for US TO prepare
our financial system TO withstand 3
storm. The most crying need this
country has is a proper banking and
currency system. The existing one Is
Inadequate, and every one who has
studied the question admits it.
The only part Of our monetary medi
um that has elasticity is the banknotG
currency. The peculiar provision OF
the law requiring national banks tt
maintain reserves to meet the call o.
the depositors operates to increase the
money str..CenCy when it arises rathel
than TO expand the supply of currenc!
and relieve IT, II operates upon eacl
bank and furnishes Il motive for tn
withdrawal OF currency from the chan
nelS Of trade by each bank to save 1t
self and offers no inducement whateve
for the use Of the reserve to expant
the supply oc currency to meet the ex
ceptionai demand
After the panic of 1907 congress real
lied that the present system was no
adapted TO the country's needs and tina
under it panics were possible tina
might properly be avoided by legisla
tive provision. Accordingly a moi
etary commission was appointed whic
made a report in February. 1912. TIL
system which they recommend involv
ed a National Reserve association
which was. in certain Of its facultie
and functions, bank, and which wa
given through its governing authorize
the power, by issuing circulating note
for approved commercial paper, by Fl!
ing discounts, and by other methods {
transfer Of currency. TO expand III
supply of the monetary medium wheI
IL was most needed to prevent the e!
port or boarding Of gold and general
/ 70 exercise such supervision over ii
supply of money in every part Of Il
country as to prevent a stringency an
panic.
n Certain il is, however. that the o
jectiOnS which We're made in the pa
history Of this country to a centr
bank as furnishing monopoly
r financial power to private individual
4 would not apply 70 an associate
. whose ownership and control is
n widely distributed and is divided b
tween all the banks Of the countr
state and national, on the one han
:, and the chief executive through thr
:. department heads and his comptroll
!, of the currency on the other
: There is no class in the communi
more interested in a safe and sa
banking and currency system, o.
which will prevent panics and aut
matically furnish in each trade cent
L the currency needed in the carrying
Of the business at that center, TIL
= the wage Garner. There is no class
e the community whose experience b.
- ter qualities them to make suggestio
D as to the suficienCy of currency a
e banking system than the bankers a
" business men.
e Ought we therefore to ignore tn
N recommendations and reject tn
q financial Judgment as to the prof.
method Of reforming our financial s.
d. TEN merely because OF the SUSPECT
&c which exists against them in the mir
O. Of many of our fellow citizens? Is
r. not the duty Of congress TO take
is the plan suggested. examine it from
Il standpoints, give impartial conside
lg ton to the testimony of those whC