Norwich bulletin., 1912-12-07

Tue only part at aHF monetary medi- uD that has elasticity is the hanknett currency, The peculiar provision oi the law requiring national banks to maintain reserves to meet the call of the depositors operates to increase the money stringency when it arises rather than to expand the supply of currency and relieve 1t It operates upon each bank and furnishes a metive for the withdrawal of currency from the chan nels of trade by each bank To save it. self and offers no inducement whatever for the use of the reserve to expand the supply of currency to meet the ex- ceptional demand.
 After the panic of 1907 congress real ized that the present system was not adapted to the eountry's needs and that under 1t panies were possible that might properly be avoided by legisla- tive provision. Accordingly a mon etary commission was appointed which made report in February. 1912. The system which they recommend inyolv ed National Reserve association, which was, in certain of it's faculties and functions, bank, and which was given through it's governing authorities the power by issuing circulating notes for approved commercial paper, by fix ing discounts, and by other methods of transfer of currency, to expand the supply of the monetary medium where it was most needed to prevent the ex- port or boarding of gold and generally to exercise such supervision over the supply of money in every part of the country as to prevent stringency and & panic.
 Certais it is. however, that the eA- jecti0ns which were made in the past history of this country to central bank as furnishing a manapoly of financial power to private individuals. would not aPply ts an association whose ownership and control is so widely distributed and is divided be- tween all the banks of the country. state aad national, eR the one hand, and the chief executive through three department heads and his comptroller of the currency oR the other.
 There is no class in the eommHnity mere interested in & safe and sane banking and currency system, one which will prevent paRies and auto matieaily furnish iR each trade center the currency needed in the carrying en of the business st that center, than the wage earner There is ne class in the community whose experience bet ter qualities them te make suggestions as to the suficsency of currency and banking system than the bankers and business mea.
 Ought we therefore to ignore theit recomnaendat tiens and reject their financial judgment as to the proper method of reforming ear finaReiai sys tenn merely because of the suspicion which exists against them in the minds of many of our fetlsw citizens? Is it not the daty of congress to take up the plan suggested. examine it from all standpeiRts, give iRapaFtiai eoBsidePa ton to the testimony of these whose expesience oaght to St them to give the best advice ca the subject, and then to adopt some plan which will cooy1rn thu hann4s4e lnrS-nIS
 A banking and currency system seems far away from the wage earaef and the farmer, but the fact is that they are vitatly interested iH safe system of currency which shall grad uate its volame to the amount needed and which shall pveyeat times Of ar tifeial stringaaey that frigbtea capi- tai. stop employment, prevent the meeting of the payraal, destroy leeai markets and produce peaafy and want.
 The Tariff.
 have regarded it as nay duty ia fer mer messages to the congress to urge the revisian of the tariff upon Prinei- pies of protection, It was nay iadg ment that the eastenas duties eaght ts be revised dowaward, but that the re duction ought not to he below rate which would represent the difference in the cost of BrQdHetien between the article ia question at henaa aAa abroad and for this aad ether reasons vetoed several hi}ls which were pseseatea tG me in the last session of this congress Now that neM congress has been elected on a platform of a tariff fel revenue only rather than a RFeteetiEe tariff. and is to revise the tariff on thai basis. it is neeAless for me to oecuRs the time ot tIis congress with argu ments or Eeeosaueudations in favor oi protective tadG
 Army Reorganization.
 Our small army neN eoaslsts of S.. s0s men, exrlaaias ihs s099e Philip pine scouts LsaSiAg aat 9f e;ssnssassaleEa ;sasssl tio9 the coast al!se astAserE feFss: whheae position is hxsa iH enr Earisstas aists sss coast asfeRssa nd thAe RgEssfennt gaEfl sons fofs 9nr 1yariieHs lnassntar asiI R9sses sions, -Hs hare today s z'it i hlg tis the seq tipentaa sBpitsa States 4 me9hsNHe aEmss of ensy ahSIlt Ss A9es smea, EhIs HlittItIs aoses aaas Ss sstl M M aaFsheF sla asEaaE asEaaE apasEE to gaRRsy stbe saeE a gaEF.saAs ler tRes grsat aSsll a l hass N sf h eseh fg RssRg esEaR 1shsa at ReaH hashsE: h ths HaEsA Ns1a ap SIglaHs,s ana sfgs pEoteet the aSeki neW- rspaaT Ianavcac chang eompietiez # gasaa