Yellowstone monitor. [volume] (Glendive, Mont.) 1905-1928, 1912-12-12

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. IL $732, COZ, 900. fndi-
eating a deficit of $22,OOOOOO
tor the year ending June 80, 1913,
similarly estimated receipts were s667.
| OOoOOO. while the total corresponding
estimate Of expenditures for that wear
submitted through +he secretary OF the
treasury to congress, amounted to
S656,OO0,O00. This shows an increase
or S76,OOO,OO0 in the estimates for 1914
over the total estimates Of 1913.
Banking and Currency System.
I I time when panics seem far remov-
ed Is the best time for Us to prepare
our financial system to withstand q
storm. The most crying need this
i country has is a proper banking and
currency system. The existing one il
inadequate, and every one who has
studied the question admits 1t.
The only part OF our monetary medi-
um that has elasticity liz 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 stringency when 1t arises rather
than to expand the supply OF currency
and relieve Ii. 1t operates upon each
bank and furnishes d motive for the
withdrawal Of currency from the chan
neIs OF trade by each bank TO save it
self and offers no inducement whatever
Tor the use 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 were possible that
might properly be avoided by legisIa-
tive provision. Accordingly mon
etary commission was appointed which
made report in February. 1912. The
system which they recommend involy-
ed a National Reserve association
which was. in certain OF it's faculties
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
il 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 II is. however, that the OBJ
sections which were made in the past
history OF this country to central
bank as furnishing q 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 safe and sane
banking and currency system. one
which will prevent panics and auto
maticaIly furnish In each trade center
the currency needed in the carrying on
of the business at that center. tnan
the wage Garner. There Is no class III
the community whose experience pet
ter qualities them to make suggestions
rs to the sufficiency Of currency ana
banking system than the bankers ana
business men.
Ought we therefore to ignore their
recommends tons and reject thelf
financial Judgment as to the proper
method OF reforming our financial sys-
tenn merely because Of the suspicion
which exists against them In the mlnds
OF many OF our fellow citizensf Ii u
not the duty of congress to take up
the plan suggested, examine IL from a''
standpoints, give impartial eohsiaeFa.
ton 10 the testimony OF those whose
exnerience ought to fit them to give
the best advice on the sup1eet. anu
then to adopt some plan whieh "i''
secure the benefits desired7
A banking and currency SYSTEM
seems far away from the wage Garner
and the farmer, but the fact Is that
they are vitaIly interested IN sale
system of currency which shali gfaa,
nate its volume to the amount neeueu
and which shall prevent times o. a.
tifacial strfngency that frighfen cap'-
tai, stop employment, prevent lns
meeting of the payroll. destroy loca'
markets and produce penury ana want
The Tariff.
/ have regarded IL as my duty N Ior.
mer messages to the congress 10 nfse
the revision Of the tariff upon prlhsl
Dles of protection. II was my 5uus
merit that the customs duties oaght -
be revised downward. but tnat ane :.
duction ought not to be below : sase
which would represent the difference
sn tha cosf of production between ea1@