Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1916-01-12

NJ the opDortunity of continued use1ui-
n... simply because an intervening Pc
Rod of depression subjects US again to
the charge Of Democratic hard times,
with its accompanying loss OF votes.
''It is said that the manufacturing.
the banking and the large corporate IN
terests are hostile to the Democratic par
ty and that their employees are also pre-
pairing to throw their weight against It.
simply because its administration has not
brought good times, but, on the contrary,
has in their judgment brought bad times
Too Fast on Tariff
"Regarding the tariff. my view was that
our undertaking was not to Immediately
adopt a theoretically correct tariff sys-
tenn, but simply to climb gradually down
from the protective heights upon which
the Republican party had placed the
manufacturing interests of the country
not to Jump down at the risk Of destruc-
ton. but to climb down slowly and labor
iously with a view to preserving. as far
as practicable. every American industry
and injuring none.
When We came to practical realiZa-
ton of what We had promised by legis-
lation. We were inclined. I thought. to go
too fast and too far.
Production Tied up ..
1.-The effect of the tariff legislation was
what / feared it would be. The tying
up of production in this country was the
result. not of a malicious effort Of the
manufacturers to teach the country a les
son, but of the caution and timidity which
in, ho m he vpith h.
out reason, but which nevertheless al
ways exist under like conditions.
so also with banking legislation. In
stead of providing some simple method
for modelling the banking reserves o.
state and national banks under the con-
troll of a non-partsan board or commits
sion resembling the interstate commerce
commission, which would gradually
through powers of investigation. public.
ity. correction and recommendation tc
Congress work out further reforms, we
were intent upon legislation which alarm.
ed the banks by the largeness Of our pro
posals.
We failed to make the reserve boa ri
non-partisan. tied it to an executive de
partment through the membership of the
troler. subjected the member banks tc
the investigating and correctional powers
of single partisan comptroller instead
of the composite judgment of a quasi
judicial non-partisan board, and exactet
addition and unnecessary capital from
member banks. thus organizing the re-
serve associations into profit making in
sttutions, purpose entirely foreign Il
: their nature as protective organizations
The result is that the union of banks il
incomplete. the state half being outside
and the national half inside the reserve
organization. with the prospect thai
those outside will remain so unless the
law is modified.
Il think it would be wise to shape tn.
work of legislation during the next ses
sion by making the reserve board non
partisan. merging the comptrollers Office
with all its powers and duties in the re
serve board and doing away with all cap
ita1 requirements beyond the per centag.
Of reserves Of member banks now ~
CURED
Senator Newlands said that while Their,
was no need of hysteria upon the subjec
of national defence. he favored a ma
tional scheme of preparedness.