The Ocala evening star. [volume] (Ocala, Fla.) 1895-1943, 1912-12-07
PRESIDENT MESSAGE
Continued from First Page)

The only part Of our monetary medi- |
um that has elasticity is the banknote
currency. The peculiar provision OF /
the law requiring national banks to
maintain reserves to meet the call Of /
the depositOrs operates to increase the /
money strinGpncy when it arises rather |
than to expand the supply of currency
and relieve II. Ii operates upon each |
bank and furnishes Il motive for the
withdra wal Of currency from the cEah
hels of trade by each bank I" 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 1901 congress real |
lied that the present system was not |
adapted 10 the cOuntry's needs and that |
under it panics were possible that
| might properly he avoided by legiSla |
| tive provision Accordingly a mon |
etary commission WIS appointed which
made a report in February. 1912. The
| system which they recommend invo!v-
| ed q National Reserve association.
which was. in certain of its faculties
| and functions bank. and which was
| given through its 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.
Certain it is. however. that the Oh
| jections which were made in the past
| history of this country to a central
! bank as furnishing a monopoly of
financial power to private individuals.
would not apply to an association
! whose ownership and control is so
widely distributed and is divided be
tween all the banks of the country
state and national. on the one hand.
and the chief executive through three
department heads and his comptroller
of the currency on the other.
There is no class in the community
more interested in a safe and sane
banking and currency system. one
which will prevent panics and auto
matically furnish in each trade center
the currency needed in the carrying on
of the business at that center. than
the wage Garner. There is no class in
the community whose experience bet
ter qualities them to make suggestions
as to the sufficiency of q currency and
banking system than the bankers and
business men.
Ought we therefore TO ignore their
recommendations and reject their
financial judgment as to the proper
method of reforming our financial sys
TEN merely because of the suspicion
which exists against them in the minds
of many of our fellow citizens? Is ii
not the duty OF congress TO take mp
the plan suggested. examine it from all
standpoints. give impartial cOnsidera-
ton to the testimony of those whose
experience ought to fit them TO give
the best advice on the subject. and
then to adopt some plan which Will
secure the benefits desired!
/ A banking and currency system
seems far away from the wage Garner
and the farmer. but the fact is that
they are vitality interested in a safe
system of currency which shall grad
uate its volume to the amount needed
and which shall prevent times OF ar
tificial stringency that brighten capi-
tai. stop employment. prevent the
meeting Of tho payroll. destroy local
markets and produce penury and want.
Il The Tariff
I have regarded it as my duty in for
mer messages to the congress to urge
the revision of the tariff upon princi-
pies of protection. 1t was my Judg-
ment that the customs duties ought TO
be revised downward. but that the re-
duction ought not to be below rate
which would represent the difference
] in the cost of production between the
article in question at home and abroad,
and for this and other reasons l vetoed
. several bills which were presented to
me in the last session of this congress.
Now that new congress has been
elected on a platform of tariff for
revenue only rather than a protective
tariff. and is to revise the tariff on that
/ basis. IL is needless for ME to occupy
the time of this congress with argu
ments or recommendations in favor OF
! protective tariff.
Army Reorganization.
Our small army now consists OF 3d.
500 men, excluding the 5000 Philip
pine scouts Leaving out of considera
ton the coast artillery force, whose
position is fixed in our various sea
coast defenses. and the present Sarrl-
sons of our various insular posses
sions. we have today within the con
l tinental United States a mobile army
Of only about $4,000 men. This little
force must be still further drawn upon
to supply the new garrisops for the
great naval base which is being estab,
ished at Pearl harbor. in the Hawaii
an Islands. and to protect the locks
now rapidly approaching completion
at Panama
The forces remaining in the United
States are now scattered in nearly
fifty posts. situated for a variety "f
historical reasons in twenty-foul
states These posts contain only frac
tons of regiments. averaging less thar
700 men each In time Of peace it has
been our historical policy 10 admins
ter these units separately by geo
graphical organization. In other words