Perth Amboy evening news., 1912-12-06

After the panic Of 1907 congress real
lied hat the present system was not
adapted to the country's needs and that
under It panics were possible that
might properly be avoided by leg1sla-
tive provision. Accordingly a mon
etary commission was appointed which
made a report IN February. 1912. The
system which they recommend fnvolv-
ed a National Reserve association,
which was, in certain OF its faculties
and functions, a bank, and which was
given through It's governing authorities
the power. by issuing circulating notes
for approved commercial paper, by tx
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 eI-
port or boarding of gold and generally
to exercise such supervision Owe the
supply Of money in every part of the
country as to prevent a strtngency and
a panic.
Certain 1t Is, however, that the OBJ
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 n hand,
~-L A. n1y.$ a~aryyHrn throf1Nh throa
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. n
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 suf1ciency Of a currency and
banking system than the bankers and
business men.
Ought we therefore to ignore their
recommends tions and reject their
financial Judgment al to the proper
method Of reforming d financial sys-
tenn merely because of the suspicion
which exists against them in the minds
Of many Of our fellow c%itiSens1 II 1t
not the duty Of congress to take up
the plan suggested. examine 1t from all
standpoints, give impartial considera-
ton to the testimony Of those whose
experience ought to At them to give
the best advice on the subject, and
then to adopt some plan which Will
secure the benefits desiredf
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
tf1cial stringency that Brighten capt.
tai, stop employment, prevent the
meeting Of the payroll, destroy local
markets and produce perjury and want
The Tariff.
I have regarded 1t as my duty in for
uer messages to the congress to urge
the revision Of the tariff upon pr1nci-
pies of protection. 1t was my 1udg-
that the customs duties ought to
70 revised downward, but that the re-
luction ought not to be below 4 rate
which Would represent the difference
the cost Of production between the
in question at nome and abroad,
md 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 beer
on a platform OF a tar1n Tor
venue 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-
ments or recommendations In favor OF
a protective tariff.
Army Reorganization.
Our small army now consists OF 49,
300 men, excluding the 5000 Philip
pine scouts. Leaving out of c~onsidera'
ton the coast artillery force, whose
position is fixed in our various sea
coast defenses. and the present garri-
sons of our various insular possess
sIons, we have today within the con-
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 garrisons for the
great naval base which Is being estab-
lished 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 scattereS in nearly
fifty posts, situated for a variety of
historical reasons in twenty-four
states. These posts contain only a
tons Of regiments, averaging less h a
TOO men each. In time Of peace 1t has
been our historical policy to admins
ter these units separately by a geo
graphical organization. In other words,
sue army In time Of peace has never
be.,n h united organization, but mere
ly scAttered groups Of companies, bot
tslinns and regiments. and the. first
task In time of war has been to create
out Of these scattered units an army
ht tor effective team work and coop
erAhon.
A comprehensive plan OF army reor-
g~antiation was prepared by the war
>olla,> division Of the general STAG.
Undsr the influence Of this study
dsGnits and effective steps have been