Albuquerque morning journal., 1913-11-14

though is administration was notable
Ia othef ways II made no acuye re-
lOrms IN tne tariiL ln pontcs an,
economies. this b.n which 8 ALREADY
accepted and In a large measure pre-
pared for. is perhaps the creates
change We nave mace in hali een'
tury. and the ease with which u d
made and the quiet with which i q
Ia.ceptea wnen compared With ths
ways such Fundamentally changes are
met In Europe. is good evidence OF
the inherent political ability Of th'
American people
Taeio vii be- certain problems 10 oe
considered by the banks of the c0un.
Try as result Of this Uil, prop.
...s .l4at toms NANNY 10 men wh,
deal entirely with credits. The re-.
i.ufai ~ ,.e t.f4t go WOOL on cat
tie, on grain and On lumber requires
ua TO consider carefully what the fu-
ture effect on vaues VIII De- Tine
7 advance In prices Of these commodi-
ties IN recent years has teen tremen-
dous. The hope Of the tariff reform
eru is that the new tariff VIII result
in lower piices. n this be the ease,
Ian u Us dealing with the commodi-
Ties. directly or Indirectly affected,
must give careful consideration % the
T probable results and advise our cus-
toners accordingly
An important feature Of the new
tariff bin Is the income tax. While .t
places q heavy burden on the banks.
I making them IN fact collectors of a
large proportion Of the tax, at the
same time the gacsti0ns involved are
not serious They are Of a minor
character, and deal mainly with de-
tails.
Il has been suggested that it would
be well for me to make some remarks
on tine new income tax law. but my
experience is that no one al this time
knows how TO interpret it, at least.
interpret the application Of IL. As e.
practical measure. II seems 20 be a
half-baked proposition Authorities
AZ Washington even are changing
their instructions almost daily AT
this time. the collection OF the income
at the source seems to be the STUN
bling block
The currency til now before the
senate IL one which Is causing more
uneasiness among financial institu-
lions than anything that has been be-
fore the American people Ia a gener-
alton. without question. the bin as
passed by the house is In the main.
good. but there are some features Of
% which raise serious question az
TO whether or not lt will be workable
and efficient The most dangerous
feature Is the contemplated political
control. the compulsory subscription
to capital stock. the reserve feature
Now as TO the present condition Of
our money market The situation is
not alarming. but it is not comfort
able. There is again AN over cXpan-
sicu of credits but not so great as in
1907. The fundamental cause Of this
trouble is the tendency OF the Ameri-
can Of today 10 get away from the
principle Of his father not to go too
heavily In debt The American OF to-
day feels that to make big money he
should borrow large sums, hoping
that circumstances win naturally de-
vclop 10 enable MIN 20 meet his
obligations Ia other words. he has
developed a tendency 20 gamble on
future probabilities
! am more familiar with the banks
OF the southwest than any other sec
ton. and I know this tendency to
over-expaud is true in all localities
New Mexico is no exception II Is up
20 the banks to readjust this condi-
tion. Unfortunately the banks Of the
country have permitted themselves 10
become contaminated with this desire
20 get rich quick, and too often they
are entering into speculative deals
outside Of their banking business The
man, when he enters the banking
business should make up his mind
definitely to limit his endeav0rs to his
and not be influenced TO
give his time or resources 20 out
side deals, especially Of "a speculative
nature The bankers Of the reserve
cities are finding an increasing
among bankers 20 become
sde partners Ia deals which their banks
are financing Where these cases are
the parties Interested are
being cautioned Such methods can
only result In disaster This condi- /
lion applies TO the entire southwest I
and / can safely say that it Is also (
applicable in some Instances TO the /
banks Of New Mexico. In their desire
10 make large profits bankers are I
taking on proposition of non-llquid I
nature are baslng their loans too
often on assets that cannot be real /.
lied upon readily AS time goes on, I
they are adopting the policy OF look I
ing to their correspondents instead OF |
their note files. for funds upon which /
10 operate This results In general !
accumulation Of credits. and | think 1
largely that Is the basis Of our present /
troubles / believe | am safe in say /
ng that the reserve cities today are /
more rediscounts from their .
than ever In the coun- I
ry's history This is a dangerous .
situation. and must be corrected.
The American people OF the present I
operate on borrowed I
'apital. II you tell a man he is bor
owing too much money he laughs at
'ou. That condition applies not only
O the individual but TO our municipah-
les and our large corporations also.
The market to a certain extent is
Unstable the securities are undigested,
,ut | am satisfied that these things
vim soon work themselves out. do I
Tot feel there is any extreme cause