The Detroit times., 1912-09-30

I. q 't a.a,. com.
me end de-
sh - - is no excep.
swes No > Of gold IS
q |. ' Sc ss'' s e. e..
1850 u 20 II. sT6s S~o.,dl gea stock o.
monetaH gold now exceeds $1,000
iO00, OOO. against S50255eO.e00 In 1901
and ssbol 800, 900 In 1892.
This, within years. the worlds
ontp1t OF gold has Quadrupled while
the ,stored-up supply has more thar
donbled. or course, there has been
no (similar Increase in the supply OK
other commodities--the things that
exchange for gold. That is the reason
why gold is cheaper and other thinss
fdearer. There Is no mystery about
4 IL. The fact that the gold output is
likely TO increase. the cost OF living
ito rise AID cur troubles TO multiply,
for some years 20 come threatens
still further discomfort. In my opinion,
congress made great mistake in not
acting promptly on President Taft's
message in favor of an international
conference TO inquire into the high
cost OF living, its extent. Causes eli
7 fects and possible remedies" Such
conference is urged by the leading
economists OF this country and
Europe, and by prominent business
men and commercial bodies in this
country. earnestly hope that there
will be no delay In this matter after
congress meets, in December. The
business and commercial world is en-.
Titled TO the quickest possible rehef
| from the present disturbed. conditions.
III there ever has been a need for real
statesmanship since the Declaration
OF Independence was signed, ii Is
now. Imitation OF prices = and land
values cannot continue much longer
without resulting in grave world
crisis. II, as I think probable, our
men OF science can devise a means
of stabilizing prices and averting
crisis, we should have the benefit OF
their knowledge as soon as possible,
Discussing the special conditions IN
this country. Mr.. Douglas said:
I'm addition to the evils growing
out of gold depreciation, this country
has two bad and dangerous pieces Of
Hesitation refer to our tariff and
banking laws. We made both OF
these laws and have only ourselves
TO blame II we suffer longer from
them.
Much of our imitation and of our
high cost OF living is due to our high
protective tariff II we would cut
the unnecessary protection out OF
our tariff the cost OF living would
quickly decline from 10 to 80 per
cent According to recent report
of the English board of trade, the
cost Of food. heating and lighting
was, In 1909, 3S per cent higher In
the United States than IL was In Eng
land. 1t is not easy to And rea
son, outside OF the tariff, for this
great difference. Inasmuch as we
supply large part OF EngIand's food
we would naturally expect food TO
be rs cheap here as IL is In England.
With us. however. important foods,
like sugar and rice, bear tariff taxes
OF SO to so per cent OF course, the
tariff taxes on our clothing and build
ing materials add enormously TO the
cost OF living, and, therefore. OF man
ufacturing and of doing all kinds OF
business. The removal of all unnec-
essary tariff duties would. by increas-
ing the, purchasing power of the dol
lar, have the effect OF increasing
wages 10 or 90 per cent, and would,
through cheaper materials, machin-
cry, buildings, ETC., reduce the cost
Of production and stimulate manu-
featuring and other industries. The
Democrats (assuming that they will
control the. next administration
should lose no time. after March 4,
i'm reducing the tariff imitation, and in
putting our industries and our homes
on safer and less artificial basis. In
this way they will, as believe. do
much to quell discomfort and combat
Socialism, ~ Es
Along with thousands OF other
business men, was sorely disappoint-
ed that congress adjourned without
doing anything to remedy our present
unscientific, inadequate and unsound
banking and currency legislation. The
1907 panic was largely a banking
panic, and the 1898 panic might have
been far less severe. had our bank
ing and monetary laws been more
adequate. Must we suffer from still
other panics before we learn our les
sonsg No other important country
experiences such frequent and Sc
we're panics as does this country. In
no other country Is the currency sys
tenn based upon and limited by the
country's bonded Indebtedness. In
other countries there is full co-opera-
ton between the ordinary banks so
that they rediscount each others com
mercial paper, and the total capital
OF all the banks in all parts OF
country Is utilized for the benefit OF
all the industries In all parts of the
country. Moreover, in most other
countries the banks issue notes based
upon business assets The Canadian
and Scotch currency systems are es-
pecially elastic and good Money
stringency is practically unknown In
these countries, because the entire
commercial assets are available as q
basis for currency. Thus, by means
of rediscounts and of we'll safeguard
ed asset currency, the rate OF interest
Is substantially the same in all parts
OF. most other countries. TO the great
benefit OF farmers and business Inter.
ests geneEally.
I'm my opinion, one OF the great
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