The river press. [volume] (Fort Benton, Mont.) 1880-current, 1912-12-11
inadequate. and every one who has
studied the question admits it.

studied the question admits il.
The only part Of monetary medi
um that has elasticity is the b~anknots
currency. The peculiar provision o.
the law requiring national banks tt
maintain reserves to meet the call oi
the depOsitOrs operates to increase the
money stringency when it arises rather
than to expand the supply Of currency
and relieve it. 1t operates upon each
bank and furnishes a motive for the
Withdraw wal of currency from the chan
nels of trade by each bank to save it.
self and offers no inducement whatever
for the Isl Of the reserve to expand
the supply of currency to meet the ex.
ceptional demand.
After the panic Of 1907 congress real
lied that the present system was not
adapted to the country's needs and that
under 1t panics We're possible that
might properly be avoided by legisla.
tive provision. Accordingly a mon
etary commission was appointed which
made a report in February, 1912. The
system which they recommend involv-
ed a National Reserve association.
which was, in certain of its faculties
and functions. a 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
1t 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 a stringency and
a panic.
Certain it is, however, that the OBJ
j~ections 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
distributed and is divided be-
tween all the banks Of the country.
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 arm There is no class in
the community whose experience bet
ter qualities them to make suggestions
as to the s%ufficiency Of a 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-
tenn merely because of the suspicion
exists against them in the minds
of many Of our fellow citizens? Is it
not the duty of congress to take up
the plan suggested, examine it from all
standpoints, give impartial considera-
lIOA W JAC lCSllAuOAy VI IAOSC AOSC
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
Of currency which shall grad
uate it's volume to the amount needed
and which shall prevent times Of ar
tificial stnngency that frighten capt.
tai, stop employment, prevent the
meeting Of the payroll, destroy local
markets and produce penury and want.
The Tariff.
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 a rate
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
bills which were presented to
me in the last session Of this congress.
Now that a new congress has been
on a platform Of a tariff for
revenue only rather than a protective
tariff, and is to revise the tariff on that
basis, it is needless for me to occupy
the time of this congress with argu-
or recommendations in favor Of
q protective tariff.
Army Reorganization.
Our small army now consists of 49,
BOO men, excluding the 5000 Philip
pine scouts. Leaving out of considera-
ton the coast artillery force, whose
position is fixed in u various sea
coast defenses, and the present garri-
sons of our various insular posses.
sions, we have today within the con-
t1nental United States a mobile army
only about $4,000 men. This little
force must be still further drawn upon
10 supply the new garrisOnS for the