Newspapers / The Charlotte Observer (Charlotte, … / Feb. 29, 1908, edition 1 / Page 8
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8 : CHARLOTTE DAILY . OBSERVER, FEBRUARY 23, 1003, SljlMOSS OX ALDBIcn BILL SPEECH MADE IX U. & SENATE. Senator From North Carolina' IV-liv ers Masterly Address on the I o-log- I Inanrial Measure. Known "the Aktrlch Bill Ue rolnta Out Objection to eioiiie of tbe Main C Provisions of l)e Billhead Approves . the Provision Which Removes Lim itation From the Ketlretnent of '--. linrtal Bank Circulation-Ttterly . Opposed to the Railroad Bond J'ca- tore. .' ,. ' : , Following' t .the. address of Senator. F. XI. Simmons, delivered In the Senate ot the United State Monday, tha Senate having under consideration, aa -committee of : the whole, the Aldrich bill to amend 'the national banking laws. , t Sir.. President, In . the report of the Comptroller' of the Currency for 1307,' on page It, under the. head of "Profit on circulation," the statement is made that approximately 97, per ' cent, 'of the. bonds on depositees security for. national bank circulation on October 21, JS07, were 3 per cent' consols of 1930 and S per cent Panama canal bonds;, that notes secured by these two classes of bonds are subject to a- semi-annual tax of , one-fourth of 1 per cent, and that the average price of 2 per cent consols in .October, 1977, was about I. The bill under consideration authorises national banks to issue notes upon State, municipal, and railroad bonds, but inv poses -rigid restrictions at to the charae ter of these bonds, and notes secured by this cjas oi,.bondg.aramada-subJet to monthly tax of one-halt oM per cent The Senator from Rhode Island Mr. Aldrich, in his speech delivered In ths Senate a few dais ago, stated that there were only about 12,000,000.000 . worth of railroad bonds available as a basis -pf bank-note, circulation under this act. have before me a, pamphlet Issued .by the Inter-State Commerce Commission en titled. "WatUtlca of Rallroada In the Inlted States for the Tear Ending June 30th. 1906." On page 61 of this pam phlet the statement Is made, that the total amount of railroad bonds of various description outstanding on the J'Ha day of June, JJ08. wss y.,Kt.Tn.9dZ. being an increase of ISlJo,ai5 for the year 190. Allowing the same Increase for the year 1907 the. present outstanding ponded . In- debtedneas . of the railroads should be bout t7.000.000.000. . In . other words, the standard fixed !n the bill Is so high that only a little over one-fourth of the railroad bonds out standing are available to the banks as security for these notes. Railroad bonds of .this select, htgh-elasa, gilt-edge char- ecter. do not bear . a rate of Interest . ex ceeding 4 or 4e per cent., and command. tinder ordinary conditions, a good pre. pilum. . I have' not" been able to ascertain the . total . amount . of State - and municipal bonds at .present outstanding, but it Is safe to assume, that on account of the rigid' requirements of this bill with Pret ence to them, not more than two-thirds of 'those outstanding will be available as a, basis of circulation under it. Of the entire Issue of State, county,-and munici pal bonds outstanding In 1'j02, that being the last census report of this Indebted ness, about two-thirds are 'from t to per cent' long-term' bonds. . These gen erally sell. In normal times, at a small premium. Th Comptroller of the Currency, In fhe. report' to which I have Juat referred, makes . a calculation of the profits en bank circulation Issued upon 2 per oent. United 8taes bonds, subject to a tax of one-half of I per cent, per annum, and allowing per cent, for the use of the money invested In the purchase of these bonds, reaches the conclusion that there is a profit of 1 per cent on these notes. COST OF BANK NOTES. . ' In I speech' made 'In 'the House of Renreseatatrvea on the-4th day of Feb- rtiarv. of this year, Representative Mill, of .Connecticut, .who, I believe. Is , re garded In that body. as an authority on banking and finance, employing tha same method of calculation aa the Comptroller, make a calculation of the cost of bank notes based on 4 per cent, municipal and railroad bonds subject to a tax of 6. per rent per, annum and reaches the con clusion that Instead of a profit, aa In the case of notes Issued on 3 per rent. United States bonds, there will be an actual loss of about 1 J-3 per cent a, coupie oi weeics ago I addressed a communication to about twelve or fifteen leading bankers lq North Carolina. In closing a' copy ' of ' this bill, and asking their opinion witli regard to-lt In their replies most of them lay great stress unvn ine cost, oi issue unoer suen a law. Several of them, allowing 4 per cent. In come from bonds deposited with the Treasurer and ( per cent. Interest on be . money Invested In their purchase: and. adopting tho Comptroller's method of calculation, estimate the cost of bank note Jesued against this class of bonds at 'from Mfc- to t per cent ," . , Mr. President, there' . Is one. uritWwuH fact which, mill add greatly to the coat of bank note . Issued upon railroad and municipal bond which both -Mr. Hill nnd the bunkers to whom 1 have Just refer red dk not take Into consideration In their calculations. I refer to t!ie fact that while government bonds ere non taxable, municipal, and railroad bonds are-taxable, not nnlv by the Plate, but the county and Hie city In which ths bank owning 1h-ro i lorn ted. I do not know: what Is the general average: of there combined taxes, taking the countri es whole, but I am confident It Is not less than ltj p-r eeat. In many Htatee 1 Itaow Jt ts In eices rf that amount. In North .Carolina It will avcraxe at lesat 5 'per cent... end in the larger cities of that State, .whre the hanks are. chiefly Vcated, It will average over per cnt Allowing fnr Ibsae local taxes, the net Income of 4 pr cent., or even at tvt per cent. railroad or municipal bond Is. not materially, if sn.v. greater than a ; pr "cent nontisble gnverpruent bond. ff this bill should bwnme' a law the ' great commercial banks of the East and North, especially those which at all tlmee carry the select, hlgh-clase rail read and municipal bonds as a part of thebr permanent assets, or control them through, their trust and Insurance company-affiliations or connections, may bt able. to issue notes on them without any material cost except the tax of per cent. . per' annum and. the expense IncJ. dent to their tsaue and redemption, esti mated to be from nne-t-alf to two-thlrria of 1, per cent Hut Mr. President. th commercial banks of the agricultural ffputh and. perhaps. West do not carry these bonds as part'of their permanent assets, bees use they can pot efford to oo iu'ano tney nave no trust or msur- ance- company affiliations, NOT ATTRACTIVE TO SOUTH.' . Bonds of tld rises may be attractive for li.resttnent In sections where the 110 ; rrr of money 1. usually In exces of the , dulgence of tbe Senate, I wish to read a l!?-".! t?Lm L" .,.?I?;w'r!!?.f..,?Ltor.r5rtwd..l,,r sreaW demand in 1e Bou.h. as In th.iJoh O, Brown, present of th CltU North, for money dut-ina- th eron-mov-I sen.' National Bank, of Raleigh. N. C. 'ntT aaaon than dnrlnr tha mn nl.niln. ; and growing sesaons. the crops of the oiith.are expensive crops ar.d their cut tivation calls for vast sum. of ready Neijh!orhtod Favorite ' Mrsi p, CTar-ea. or ijlarbor. Main, epeskir.g of Electric BUter. says: "It t a neighborhood favorite her with os." It deserve to be a favorlje every, where. . It glvee quick relief la dyspep sia, liver complaint, kidney derangement, rflln?r1fksn. nervousneas. weakness and gcral ovnllity. Ita action on the blood, a a thorough purifier makes I -fpeciallf t f il as a ar-tlng rnidurtne. Thla grand i. 'r-a'ft to' U- la ot under guarantee at a.i drug tt?re. iC. . cash. ' Cotton la an 'expensive crop. Cane is an expensive crop. ' Tobacco Is a still more expensive crop. And truck - crop ping is more expenslve'tnan either can. tobacco,' or cotton. - This demand of the farmer-. In, the spring ar.d summer for planting end cultivating- and in the fall and winter' for -'harvesting and market ing Ms crops,- together with the all-yea r reund demand of the merenant the man ufacturer., and the town builder strains to the -utmost' the limited resources of the banks of that section at all seasons of the year. . The-emergency Is greatest In the fall and winter.-but to a- degree It continues throughout 1 the year, there belng"pra,ctlcall.r no time w-hen ' the 'sup ply of Tnoney. to any appreciable degree. exceeds 4he demand for-money. .with-1 steady 'and constant demand for practi cally .all' of. their -loanable "funds-, of per cent. It Is obvious that there-banks can not afTord te Invest In and carry as a part of ; their-permanent-aseets' high- class, low-biteresf-yleldlng Becyritl.es. . Mr. President-we have In recent years Issued' a 'great many municipal bonds, in the South., and our local-. banks aome tlmea buy these bonds... but 'almost in variably,' except when they are' bought by depository . banka to be used aa se curity for government deposits, they buy them for. the purpose of . selling them again at ' a profit They do not carry them, aa I said before, as a permanent Investment .It Is. a fact. ' which is' a matter of .common knowledge, that the great bulk of these bonds, especially the select class - required ' by this .bill. , are purchased and held aa Investments by the great trust and Insurance companjea and" savings .banks of. the East and North,- and to some extent of the Middle West - '' "There are two 'ways In which the com mercial banks of the agricultural, sec tion can. secure-these bond for us in Increasing their bank-note circulation In times ot emergency. : One la to borrow them, aa many of them did during the recent panic, for use a aecurity for Gov ernment deposits, and pay for' their use the usual rate of 2 per .cent The other is to buy 'them with, money taken from their vaults. '- 4 ' . . There are . two reasons why Increased bank circulation secured In this way will not be profitable or beneficial either to the banks, In these, agricultural lec tions or. the communities In which they are located. First because It would add from 3 to 4 per cent to the cost of bank notes; and secondly, because while the general stock of money In the country at large would be increased. the amount In the particular section' where the bunk is located would not only not be Increased, but, on the contrary, would be decreased precisely to the extent of the difference between the coet ot these bonds and the amount of new notes allowed to be is sued against them. HIGH COST. ' ' , Mr. Preeident' I have undertaken to show, and I think I have shown, taking the. situation of the country at large and the condition which surround the com mercial banka, except possibly those in the great financial centres, where the supply of money Is usually In excess, of the . demand, that bank notes Issued sgalnst municipal and railroad bonds un der, the conditions Imposed on this, bill will cost .ordinarily between and i per cent, and therefore could not be loaned at a reanopable profit at less than, say, 19 or 10H per cent Now, If. the municipal and- ralroad bonds required In this bill could be bought at . par. If they carried full per cent. Interest and if they were not sub ject to taxation by the State and Ha subdivisions, on account of the tax Im posed, the Cost of bank notes secured by these bonds would still be between ti-l and T per cent, and they could not be loaned at the usual commercial rate of per cent.' except at a loss of from two- third to 1 per- cent, nor be loaned at a profit of 1 per cent., a In the eaae of;'" note, aeeured by 1" nlted State, bond, for less than 7 2-8 per cent I have before me a letter from en of the leading banker of North Carolina, In t which, . after declaring that circulation under thl act will coat Ah bank of the South and West at least i per cent, he asks the pertinent question: "If the banks have to pay these ratea for thl circulation, what will their borrowing- customers have ' to pay. and what will a law-abiding banker do In a State like -North Carolina, where the rate of interest is t per cent?" Mr. President, the law ' of North Carolina not only fix the i legal rate of Interest at ' per cent, but they Impose heavy - penalties and forfeitures If a greater rste Is re served for the use of money. The sumo I true pf most of the Southern State. and perhaps of' many other States of 6tl)r sections of the country.- t-'o that the banks of North Carolina, and other Htntea with like Interest laws; could not. without violating these laws against usury and Incurring the risk of the pen altlea and forfeitures they prescribe, lend hese notes without a certain loss of gt least 1 txrr cent, and a probable loss of from. 3 to 4 per cnt. , ' ' Mr.' Aldrich rose. - ,,-. The Vice President Does the Senator from, North Carolina yield to the Senator from rthode lalnndT Mr. Simmons. I wetitd prefer to present my argument consecutively, and If it will suit the Senator from -Rhode Island Just ft well. I will ak Mm to withhold hi interruption for the presnt. . Mf.' Prealdent I Was gln! to have the view I ; have beerr expressing confirmed by the resolutions recently adopted by lhe committee on commercial liiw of thej Mer-'.liants' Association of Nw; Tork; which , mere called to mj' attention by i editorial which appeared In The Oh server, a newspsm-r of Charlotte. N. C; In Its Issue. of Saturday last." Th part nf the revolutions to which I wish to call attention rtsds a follows , . Received. That this committee on bank ruptcy and commercial law disapprove .Senate Mil No. JZt. -entitled "A bill to amend tb national banking laws," intro duced by Senater Aldrich. for the follow ing reasons: Second. . The high as which this bit! propose to levy upon the tactic or emerncy currency, and which Jn the. last atialysla would be paid by the borrower to the bsnks. when In creased as it would - be In practice at leaat one-third by reeerv requirements. Is not only unnecessary, but oppreaslve. and In this and other Stale would pro voke an immediate disregard of -the sta tu toe sgalnst uaury. It Is not becoming that a great- nation should fill It coffers from, the neceaaltle of borrowers; and ; 0f It la manifestly Improper to oa" one law which offers -inducement to the viola tion of another. . Undoubtedly, Mr. President as the resolutions of , this committee of the Merchants'' Association of New York wn - nav- ,uai reaa . oeciare. in tne axalnst the banks. but In the last mil . maiMm linn uia- vniio will la I ,l analysis the borrower, who In th case I have been dismissing. la. the farmer, will , - have to ray It - Because of Its pertinent bearing upon : tltJ ph4 f till ftlfUO'1, With th ill Jlr Brown Is Bot nnlv ana n h , ng bankers of my giate. but h I an able man and a great student of finance. ' ' If is known In banking circles through- i out'tl.t country, having delivered aeveral notable speeches at meeting of the Na tional Bankers" Association. Is thla let ter Mr. Brown a) a: BANKKl DROffX's'nEffJ. What w nd to provide -for ts the an-iling of . the crnpa at harvest time without th fearful advance In intereet rates to whioh we have Wn subjected The farmers are entu4 to ss low rates as are the bond dealers. At preaent In the crop eeaaon I lie country banka call on th-lr New Tork correspondent, the rate of Intereat ia foro-4 upward by the demand, and although the charge l sgainrt the banka, yet In th nnal analrrls. the farmer' has to! pay It ""A well-devised scheme would furnish need ed currency at euch a. time at minimum cost' and without delay, nor would the iesue of this currency be' regarded as an indication of -weakness on the : part of the bank..' Whatever plan may toe adopt ed ought to prevent the' banka -of one section being any longer placed entirely at. the -mercy ot another, as heretofore not only uncertain ,as to whether th,ey can borrow the necessary funds, but un certain as to whether their actual bal ances will be -paid In cash if" wanted. . Mr. - president tne- aemana - iur emergency currency .1 not of ; recent origin." The panto - -through . which- we have Just passed did. not create It it: merely -emphasised C This panic, though; leaving - widespread depression In ' Ita : wake, has paeaed. and another, will not be 'due in the ordinary course' of event for; many years to come. The . present demand for an emergency currency I not to provide for conditions created by the-htte panic, , but to supply, the extra ordinary demand which recur during each, autumn and winter' for ; from two hundred to three-hundred million dollars In fspot cash' to. enable- the farmers of tb country:to harvest and market their crops. : To gupply this demand of the farmer- we need more money, but not a different kind of-money, not n lilgh-prlee money. Already we have aeveral kinds of - money In this country gold . and liver, gold certificate and allver certifi cates. United- Statea notes." Treasury note, and national-bank 'notes, all.oi.it Issued directly or indirectly by the gov ernment, but there la not a lngle dollar of ,thi money that tan not; far a the cost of Ita Issue and flotation la concern ed.. be loaned at a'rirdfit at 'per eent This' Is the' money with which the banka supply the 'dally oemano.s ot. mo nir chent and the manufacturer, the mines end : the railroad. .'Tbl Is the money w-Jth which the ordinary business of the country Is done and there U enough to upply tfil demand In ordinary times. . . A HIGH-PRICED MONET. ;'Tt In now nronosed by.'thl bill to make another kind of money-rg heavily taxed, high-priced .money. A money which cn not be Issued upon a 6 per cent nonu.ex- ccpt at. a cost of. not -less man rrom 8 2-3 to 7 per cent... -which can not be Is sued by the average bank upon a 4 per oent bond except at a cost 'of from 9 to Vj per cent; a money which can not be Issued and loaned at: a profit by the banks ot. the . agricultural, sections, for less than S or 10 per cent If this bill Is All- T-JU nm "ZPl'tZllZ . - .... . ... 1. 1 L. Ill V.. pense lncldent-to the picking and baling . of his cotton, to cutting and curing hi tobacco, to gathering a,nd houalng hi corn, and to harvesting and warehousing his .wheat ' ; - Mr. President' when the. financial aky Is overcast with . clouds, when Wall Street I filled with' a surging mob. when the wlrrt are burdened with demands for Increased - margin. and stock are thrown upon the market in blocks, and the call for money Is leaping from 10 to ..JTa , f. .u,. diri.rd of"11", must be done by way their duty to their depositor, and to the i T . w k"' largely con publle have made possible the specula- i "J "i haVe ,,"'d ?l tlve venture and . reckles gamble, of "0,r' to ln "th,f objection, which which these unhealthy conditions of the c P8'""'- market are but marked .ymptom caniT"" obJecUon. jnay be minimised or rford to pay almo.t any price for money!, aom mendnwnt but I to . atsy the tempe.t . which their de- j nt aty re- parture from the principle, of aound and "m W emergency y.- wfe banking ha. r.I.ed." The remedy , b." "."fJl for condition, like the doe. not He In ! ..c -' " legislation, but in a return to sound and and a sltu.tWthu. created and fostered ' call not so much for remedial a. tor ..,,,, ,.,,,.. fnr , , tl . i move the cause rather than to cure the disease. The emergency to which we are ' ad dressing ourselves, or to wMch. in my Judgment, we should address ourselves. "ol emergency causea Dy unneaitny - "7T"t,wn"' "" woiT;r.n.- tTVa!? !!! wonderful productiveness of th Amrl-i,h. -flTf "i.t! nJ.Ta- U 1 Pnaion of local currency rnc,f- That can only be supplied by leg- profit, of hi occupation mako high In- ,4 n t be eliminated by reducing ' i"'t,on- ' Trd balance, are uncertain, tere.t charge on the advance, he re-, th( reserv, .i,owed to -be deposited In The output-of gold I uncertain. Good quire to market hi. product, burden- i reerv c)teg io the minimum required 'rt.un. which In the recent year of our "JI.1 fPPreMlve' ' 4U - for purpose, of exchange and requiring ' -bounding prosperity has smiled upon us Thl bill 1 the response of the majority tha remander of tneIr lesa reserve to!nd ved us. may at any time desert u. In Copgres.to the demand tot mor, fce)t ,n tne,r own vaultJ ,nd peTn,it- ! Our recent experience should -admonish money to meet emergencies growing outjt, them , UM of tnt c,aM e. .1 us that It I the part of wisdom to put of the great buslnes sctlvity during the crop-moving season. If ft becomes the j law In Its present .hape It will be a con- i tession on tne Pm w n, m;tl(f v,uU, nd ,uppljr tn,m wtth , that It can not supply this demand with a bond-secured currency except at an ex orbitant end usurious rate of Interest Mr. President, there I. no greater handl cuf on the business of a people than high-priced money. It Is a burden upon thrift and Industry. ' It I. a tax. upon every transaction of the people where money Is used as an agency ot exchange. If thla usurious charge Is the result of individual greed. It Is odious; if It Is the result of economic conditions. It Is. de plorable; If jt Is the- result of burdeps Imposed by the government . . on the pioney of the people., whether In the form of taxes or otherwise. It Is lndefeuslble. If this bill becomes law currency Issued . under It. .will be high-priced money, not because of Individual greed or eronoml conditions, but because pf. burdens Im posed by law upon It Issue. Every eent which the fanner or business man. may have to pay for thla money. In excess of C per cent would be an 'exaction by way, not of lnterest'but of tax. '--The. power of .taxation, Mr. President Is the greatest power conferred by the people upon the ;rov.rnment, and lt.l'tIl atso in us misuse tne moei oangeroua I ha-e no sympathy with the modern-day fnd'that every abuse can-be remedied, every evil cured. and every needed re fornt obtained bv- resort to tb taxing power. It la a. power, which opght un der- all circumstances, tb; be grudgingly used, and never used where -the object In view. -can 'be obtained In any other practicable' way. ;..- ". ANOTIIEft .OBJECTION.' - -Mr. President." the high , tax imposed by Ihls bill-upon the currency It suthorlies Is. not only objectionable, because It Will make high-priced tnoney. . but , It la ob jefltlopable becatiee It Is not necessary to accomplish, the object -and purpose for Which It Is Imposed. Jf this bill allowed notes secured by municipal sod railroad bonds to be Issued In, the. 'discretion, of the-bank.-both to time and. amount . aue,-as. In the rse- of. notes Issued on: United. States-bend. . a i high tax would be necessary .to prevent "their is sue -when not ' seeded to meet .an emer gency and to force their retirement when the emergency which called them' forth had passed. - Hut that la not' the case , ThU DU expressly. oafrs upon the Secretary of the Treasury the power . to' determine when these notes may be . ..t . V.S ak et-v1 1 at . oat vk . Tha letsiiiaaMf h ' "l W.; trmifleKl by the financial head of the , v.i . n ... an- i s. t MTawit Knalnaai f1mnt1 Thl w ,lM ,spr,r providea not only that the-amount of the- note, outat.ndlng . Bff VwJrf of' th. Trflt T'iV .II !.k.- .v.J ' "" " -"' ..- "f'Uon, "iV. "t "y ven time, be - "J"" - " "l l"r "'"""n. in. rrciary oni- clally find to be needed. There Is, there for, no necessity for a high tax ao far aa the amount of Issue and time of Issue are concerned. ' and every consideration GrlrP 1s sweeping th country. Slop It with Preventic. before It gets dee-ply abated To check early enlds with the little Csndy Cold Oirs Tablets Is surely aenelhle and safe. Preventkoe contain no Quinine, no laxative, nothing Imrah . or sickening. Ptii-rf -nonia would never is pear If early colds were promptly broken. Alio good for fvrtah children. Irge box. 4 tablets. ?S cents. Vest pocket bone I cents. Sold by Mullen Pharm aey. . of wisdom expediency, and Justice Is against an unnecessary tax " on ' them while they are honestly at work relieving the situation and keeping, down the rate of Interest by making money plentiful. The only need for a blgli tax is to force their retirement when the emergency. is over. and. we know from experience that the stress Is generally over --In1 three .or four months,- though In -casea - of . string ency, culminating In panic, .'the Incident depression may continue " long after wards. Why, then,' would not a' small tax during the first three or. four months of the life of these notes.' with a tax of per cent ever thereafter until redeem ed, accomplish the' object' In view,' with out saddling the business of the country , while the emergency Is on with n ;tin- necessary and burdensome ' rate of In terest?" , ;'; . .:-"' ' . In . thl ..country the right " to '.make tnoney rest with the government vjt Is, a aovereign function. The'people hav divested themselves of this, function and vested It In the government to be exer cised . for their benefit Not a dollar of money can be Issued except . by the. gov ernment.or it authorised . agents. Our people will, not tolerate n unsound cur rency, but they demand as cheap money, a respects ' the Interest, rate aa any commercial nation, enjoys. They are en titled to a per ent rafe for. all pur poses. - If.it is. Impracticable, to. supply the peole with -low-rate emergency money through a bond-secured currency, guaran teed by . the government, sooner or later recourse will have to be had to the-alternative system' of asset currency. X do not advocate In present conditions an .as set, currency, although such a currency, property safeguarded, . Is not a bugbear to me. I "da not regard It as undemo cratic, a soma do , if it la undemocratic to advocate suck system of currency, then, there are a great many updemo? rratlc Ekemoerata In this country to-day. But I. do believe that an asset emergency currency," limited .In amount, covered' by a reserve,; the same as la required for deposits, secured by a lien,, the same as given' to depositors, and re-en foreed by a guaranty fund ralaed by a tax on the Is sue of all the banks sufficiently ..large to force it withdrawal when net needed In response to the demands, of business would be, an infinitely' better currency system than the one provided in this bill; and that In addition to giving tha people a safe, cheap, and elastic currency It would bring about a degree of co-opera an1 ""Pwriglon.be and between the would do ten .time. more then government supervision now doe toward the protection of depositors and the establishment and enforcement of conservative and safe banking. . . POINTED OUT OBJECTIONS. ' Mr. President,- recognizing that the majority party in Congress' baa made up ita mind to work out thl problem of emergency money through the medium of a bond-secured currency along the lines of the bill now under discussion, and that all the minority can do, if apy- of amend- ' " ,J""""" "lu" .i... . . .i i.,, .. t k.."" ;'!L "i l'0- ZuTJl ?f.the,toX, V"' or 'ub'tituttK ?T fvel of ( per cent for the whole time the nnta mrm nutat nttlnr AnmMMtlnlv small taa- fnr th flrat thru nr A1,- ,' month and a heavy one thereafter. At I . But Mr. Prealdent. for thl great bless the proper time I haU propose an !n' n " ' Tet D,1K. amendment to thl effect The objections Ut,ta thBt to our tatutory monetary en the srround that tha an-MlIdd "ciin. t DnJl, a not invest in th class of securities sDecIfled nd would have ! iW tnem n "mote sections and that I ... . .,. . , lnated , the , for one.haIf.of the UUer amount Tmg would tneae bnkg ,ntnrMt on one.half the reserve In eurlties to the extent of 5 per cent ot their deposits as a basis of note Issue In rases of . emergency". Both of these ob jections might be largely. If not alto- ; gether, overcome by extending the list of securities against which thee note ! mny -be Issued to hlgh-cla.a commercial paper, as Is done In Germany . and In some other proareselv nations, but I do rot advocate this uggetion a a pan i1 of a i-rstem such a this bill proposes, snd if I did' I would not' discuss It now. because there is no poBslEfllty of Hs adoption at thl time. I am utterly op Dosed to the use of railroad bonds as a bast, of bshk circulation, and while ; I ,baU not enter upon any discussion of this question now. I wish to -say at- the prooer timeilf no one else doe. so I ilmll offer an amendment to strike these bonds out of the bill. t ; . ; . t ' Mr. President, I am glad to be able to give my. approval to one provjsjon of this bill, which I regard as being of great 1 gold reserve of tl50.000.0t 1 now support Importance, and -which it .eem.s to - me ( ing more than that amount, but we bave may be of great benefit In solving this . about tT50.000.000 worth of gold in the rxirranr. ffiroHlm T rafr. tn : TMBtniMr whti-h la .atinnortine nnl a lllrfl prevision which removea all llmita-1 (on from the .retirement of natjonil- bank circulation. If this provision. , had been adopted year ago. ' I believe, our j bank currency would .have played j a more benenoiai pert in our ' monetary system, both a respect "volume -and elasticity.' Our naMtnal-bank ''circulation has never at any tflha made the slightest response to the buslnes demands of 'the j . ' . Woman's ReUef J ; v Cardui,' the : woman .remedy, has been known for many, years iasV'.Woman's Relief,', since it has positively proyen its great yalue in the treatment of .womanljr aiseases. ' ' ' - - Twill help you, if you are a sufferer from any. of the ills peculiar to women which can be reached by medicine. Why ? Because it has done that for many thousands of other sick women,' as 'grateful letters from them, received every day, clearly describe. Because its ingredients are exclusively vegetable, and'eontain no mineral or poisonous drugs. For headache, backache, pressing-down pains, ' country except' under government pres sure and inducement During the last thirty years, except under the galva.ils- Ing influence of what was tantamount to government -subsidy, - our ' bank circula tion has dwindled until it haa become at tiroes almost a -negligible quantity In our monetary system. ' - - -.. : In 1882 there -were, only 3.000,000 more Of these noW-s outstanding than In 1SG6. only about two years after the Inaugura tion or our national banking system. In 1S91 there were tlSO.OOO.OOv less outstand ing than 4n IS? J, and In. 1500 the number of these notes were only about the same as in 1SC8.. : It Is true that aince 190J over 1270.000,000 have been added to ' our national-bank circulation, but this .Increase haa not' bene a., voluntary ln;reae. It ha not been In response tothe business demands ofthe country, exigent as they bave at time during thla period but in response to great "governmental solicita tion, pressure, and inducement To se cure this Increase the government had to loan to toe. hank, by way of ' deposits practically dollar for dollar. ' In order- to induce. them to increase their circulation It sold to the banka the recent issue of Panama canal bonds nd S per cent certificates at ..urns less la . many In stances than were offered by Individuals, and In . effeet' loaned' them- the money, without interest with which to pay for them. ' And -yet.. Mr. - President, dur ing all these years' there, baa probably been no time when these 'Ibank could not during ,mot.of -the1 year, especially dur ing the fall and winter months,, when the demand for currency 1 always great and the rate of tnterest higher, have' used these. note" at a. profit of at least from 1 to J per cent.' t ".. . -" ' -" - I may be mistaken," Mr. President, but I am strongly Inclined to believe that the reason our national bank, have' not to a - larger degree taken advantage of the privilege of iasue conferred by the act .of .thelr'creatlon and more readily, re sponded to the need of business ha been largely due to the fact that the three aqd then the nine ; million dollar per month limitation imposed ny law on ne retirement; of . their circulation made it impossible to V adequately retire these notes when, they -were no longer-profit able -or needed. INVITES CONTRACTION. ' I ' do" not ' profes ' o " know enough about pratlcal finance to have an opinion on thl. gubject entirely, satisfactory to myself, but I do not believe the removal of this limitation will. Invite undue con traction, and 1 have a hope whioh is but little removed from belief that it will Im part a Ufa anil elaaticlty to our govern-bond-secured '-circulation which would give to .the people a cheaper cur rency, than that authorised by the ' bill undr consideration and which, by a readier response to the emergency de mands of trade and commerce, will con tribute to the solution of the problem" which now confronts u. , - - . Mr. 'President, we have at thl time an abundance of money to do the ordi nary bulne. of the country. We nave a larger per capita circulation than any other commercial nation in the world ex cept France. . France .has more than we have and has to have., because in that country business is done largely upon bank note. Instead of upon bank credits, a. In. thl country. We have twice aa much money per capita aa Great Britain, we have .even time a. muoh a. Jaoa". four time, a much a Russia, and 110 ner camta more man uermanv. on tne flrt day of February. IMS. we had a per capita oi aoo.Di. x.uininaiing every one of our national-bank note, our stock of money per capita would still be larger than any other commercial nation ex- Cept France, m ouipm OI our mines ana tne International balance of trade in our hava been our financial aalvation. have done for u. everything except to supply u with an - emersrencv cur- our itnanciai nouse in oroer against a possible adverse - turn of the uncertain wheel of fate. We cannot with common prudence much longer delay a general remodeling of our amaxlngly .Incongruous monetary system.; '-.,- The paramount question" which will confront us In- remodeling our monetary system will be whether the government r bank hall furnlah the money of ne peopie. n is toiiy io taut aoont tne government not going Into the banking business. The government Is already In no raunini "' up m ti fimpm Beside. It. collections for currept ex penses, it haa on deposit in the Treasury over tnoo.0no.000 In gold and more than half this amount , In silver. It ha. out standing tt82S.pnO.0) in paper notes, for which It Is solely responsible,' and It has nearly 1250.000,000 of loanable fund...' The government . is already r In ; the banking business, but it ought to do thl. business on sound banking principles.' ' f .Mr.: President, the experience of com mercial nation, show that tl in gold will amply support t3 of paper currency. Our number of paper dollars. The' $150,000,- fOOIn gold Is overburdened, but the seven hundred and fifty '.millions Is carrying only about one third of the burden It is capable of carrying and should be made to carry, it necaasary io auppiy an aae- quate amount of currency. . In my opinion.' this vast hoard of gold. now- approximating' tn hundred million dollars, should ' be - converted Into a re- demptlon fund and "with notes drawn against It we should pay off the several klnda of paper currency which we have now outstanding and for .which the government Is solely responsible. Vpon the basia or three, or even two and , one half, dollars of paper to one of ; gold. there would be an ample margin left for in additional Issue of JjUO.OOO.OOO, as. pro vided in the substitute of the Senator from Texas Mr. Bailey, which could be loaned to the banka a emergency re quired In amounts and at a rate of In terest within fixed limits, to be determin ed by tha Secretary of the Treasury. In thi way the Government could, through tha rate of Interest fixed from time -to time, largely control movements tending to undue .expansion or contract ion of .the currency. Such a system would give the oountry an ample supply of money to do the ordinary business of the country, covered by . gold, backed by the eg urea-ate. wealth of the nation, with an elas ticity which would respond to "tho re quirement, of busineaa and afford ample protection against undue Inflation or con traction. . DOINGS AT? DAVIDSON. Junior Oratorlals. With Other Attrac tlona, on In Fnll Swings Xew Cat. alojrue Makes-It g Appcrance. ; '.'.- Speclalto The Observer. - ., pfivldson.. Feb. 58. Th Junior ora torical began laaf night "with in In- tallment of eleven epeech.e. with a musical Introduction and Interlude by the orchestra, Tho oungr men start ed out -well and . the' occasion promise's to he a nice auccesa.. Basketball fol lowed the speaking; at 10 o'clock. Al ready a large number of vlsltlag young ladles Is here. , -...... . . , , Fornial Invitations win not be sent out . to' .the 'young ladles, of tho vl.Ujtge " -. of to ' a these visitors for the faculty reception Sat urday.nlght, but the young; men of the Junior class In whose honor it ,1s given hUve bees authorised to ex tend their own invitation, to the young lady whoso company ' they ask the pleasure of-for the evening;. Saturday's recitations are transferr ed to Monday, . A number of the seniors, who. bave received en Invitation to attend a re ception at , Elisabeth College on the evening of March 2d. will be permit ted to accept the same. The new catalogue has Just appear ed., it is a publication of it rxiaes. The total enrollment la 818, some thir teen or fourteen 8 Cites being; repre sented. The isaue 'ilno . contains a number of Interesting announcements especially In regard , to entrance , re quirements. . - To-night thirty-three Junloradellver ed orations In Shearer Hall and music was furnished by the college quartette snd orchestra. After the speaking mere was a game oi baaketbfeut and. a wrestling match between Messrs. Crawford and McCaw, both' of Colum bia. C. To-morrow morning -the last of the oration will be delivered and at 2 in the afternoon the glee club will give a, concert At night comes the reception, winding up the three days entertainment Dr. Shearer left thl afternoon for Columbia, a C, on hi. way to Flori da, where he is to deliver several ad dresses. inGH SHOALS NEWS ITEMS. Tint Parochial Bstwl New-Country Clab to Bo OpeS in May Jtoiei to JUO uprnccl iu May. Special to The Observer. ' . - High Shoal. Feb. 2S. The paro chial school conducted by Dea conesses Eva and Mary, under the auspices of the Episcopal Church,. Ms flourishing. . - The public school of which Mr. Rhyne is principal Is doing excellent work and is well, attended. Miss Llneberger, who assisted Mr. Rhyne up to the present time, has gone borne on a visit. The public roads 1n this end ' of Gaston county are in bad condition. The High Shoals Hotel, under the new management, is giving excellent service and is building up a good trade. Mrs. N.- A. Henderson, who was Miss Alice Hickerson, of Ronda, t is running tne noiei. - m,. t ...I t i.i. i- - . .1 w www uulwiu Aiuu luuihi y Club, which has Just been organized by General Hoke, has a fine club hnlHInr r,A mnr. kan krn. -fc. dred- acres of land. - located about four miles from High Shoals. Th club will be opened in May.. Be- sides the club house, which was the hotel, there will be erected at once several cottages. Champagne Instead of OplunO . Singapore Free .Pre. . . Kwa take th vnrlanca n ' h'a . . ciaaraiina. cianey iTODDls or we taiie tne experience or tru i0J kindred din eaae, write to as lor a trial bob colony, we are arriving at a stage in He of a-DBOPsT . , which the better classes of Chinese are PURELY VEQCTABLE tending to drop opium and take to ' "s-drops- ia entirely free from opium, eo the consumption of . liquors. - Jalne. morphine, alcohol, laudanum, and other Champagne Is by no means tin- to"sr ingredient, known, and whiskey and soda is a aeW." commonplace of domestlo consump- gwiitni iKmaarie easa ensiaaaa tlon w(th, well-to-do Chinese residents.. Only On "BROMO QXJlNItiL," that ia Laxative Promo Ooiniae Cures a Cold h One Day, Cripln 3 Days nervousness, irritability, and gcueiai leuiaie weakness, jaraai nas been found quick and safe relief. ' .. . Mrs. R." L. .Denney, of Huntsville, rAlsut writes: "I think Cardui is far ahead of anything for weak women. It does me more .good than any medi cine I have ever taken.- X cannot praise it too highly. I think it is the best woman's medicine on earth" Sold everywhere. Try it ; ' FREE BOOK Z2&!-?&- fATl T nrrn .etc. Sentfc. Chatianoora aaadielne aas CaaaBat t-inniajj mVmmmmmmM ' (aaas CALDWELL COURT IX SESSION. Two Men to Bo Tried I'or Murder of " Lawrence Nelson Much Robbery'. Keported In tliei Connty Many Turn , Out lo Hear tfc. fVnlc Kneak. Rut He. Dors Not hliow I' p. Special to The. Observer. .. ... ' - i Lenoir, Feb. 2S. Caldwell Superior Court is in session with. Judge Fefgu-" son on the bench. " The docket is f (-fultthat it will likely not be exhausted misjrerm. The case exciting the great t-st interest Is that of Samuel Green and Omie Grter, against whom the ' grand Jury foond true hills. They will be tried next Monday- for the murder ' of Lawrence Nelson, which took place ' a -year ago last September. - A venlra calling for 200 men ha. been issued " by Judge" Ferguson. The officers- are , busy . summoning these ' men fronx - whom will be selected s special Jury to try the caae. It will be remem bered that two young men. Vlckers and Kendall, ar notir unrhv their. sentence in the penitentiary for the murder of Nelson, but since their trtat other evidence has been adduced, In-,' volvins Green and nmtn CirKnr: Lenoir was full of people Wednes- day. They had come from the four corners of the county to hear Mr. Locke Craig, who was billed to speak here- It has not been learned why Mr. Craig failed to come. Rev. E. L. Bain, of Charlotte, Is conducting a series - of meeting ' at Davenport College this week. - ., The entertainment given-hyithe.es- presslon class of Davenport to - the trustees snd their wives was much en joyed. Miss Annie Bowman, -of Cleve- , land. Tenn is In charge -of the de partment ' - " T From reports theft by the woolesale has been going off In the xounty. A case. Is-reported at Garhewell; 'one at Patterson and another at zack s rorx. where Messrs. Lovln eV-SberrlU's 'store . was ' robbed of 140 worth - of goods. None of the thieves has been sppre- bended. : - ' . J ' ' '' . Hon..R. Z. Linney is 'nere attending court. ' ir. Linney,. as ,1s well knowp. U opposed to the Appalachian forest - reserve, and he is losing no opportunl- tv'to propagate hi. ideas. . . After a week's Illness from grip, which is so prevalent In this section. The Observer's-correspondent Is able to be out of his room again. - XI,.. ii.rv V. Tnttlai - vlitnv nf thai late B. MrTuttle, of Ilartland, is vry jll with- pneumonla.Mr. Will Mar tin, of this place, has accepted a place mr Wllkhnro' and hft'MondaV to be gin work. Mr.. M. ' M. 'Courtney has been elected a delegate to the mer chants prosperity convention, wmcti meets ' in Baltimore - next : week. and , expects " to leave 'Monday, to attend Its ' sessions. , Addresses by - President Flnley, ' t of the Sputhern Railway, and Oovernor Fow ler, of ' New Jersey,-are included, In the programme, which promises many treats to those In attendance. . A GARAGE FOR SALISBURY. -i , . " i- " ,.,.' blt For a Building, to Be Erpoted at r Once, Secured -.Vnother New 1 En . terprlse. . -. .- Special to The Observer. . ... Salisbury, Feb. '. 28. - Thompson Bros., the automobile agents, have secured a site for Salisbury's ' ftrst garage and a building "will be started immediately. ' The new enterprise win be. located , at ' the corner ..-of. Fisher and Lee streets. In this con nection it is interesting to- note that ' the first automobile in-Stanly county was purchased a few days ago, when l?t, Thompson disposed .jf. Ford runabout to Mr, R. I Sibley. of Albemarle. - ' r ...... ..j . . A new moving picture enterprise opened here last night with Mr. T. E. Becknell as manager. Dream land" l. the euphonious title given and it Is situated In the new block on Council street, quite close to the Southern depot. -The opening was largely attended and decidedly en couraging. It is the intention of the management to secure, some good vaudeville talent and so vary,. the usual show. " a promst. rrrrnrivt ' SaaaaBrnv ana ii i amnaaA aav nmwwnmtm , w naa rvnme wr mm Pf Jt af l""! If HH IJ 1.1 LA i I 5 I.I "m m WS umrnmt toaaany Bolmtlom, Hmwmmittm, OaV Imrrft, Amthmm, Lm Orlpmm, KMmy Ttmtbtm sYaWafrwef Utmm. BWAN SON'S 5-DROPS" applied externally, affords almost instant relief from pain, while permanent reaalte are being otkwu or taxing internally, purifying tb olood. dissolving (be poisonous subataoo sad removing It from tbe irate m. If yon are aufferlnr with Rheumatism, IrVSl- dm. ea. it iumi. caiM I ' : I . . on every yT'VXasswkox. 25e mother symptoms of ', - 1 raqoaat. la plain wrapper, by snail Coonpeny, Ouutaaooga, Teno.
The Charlotte Observer (Charlotte, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
Feb. 29, 1908, edition 1
8
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