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About The Oregon daily journal. (Portland, Or.) 1902-1972 | View Entire Issue (Dec. 18, 1907)
THE OREGON DAILY JOURNAL, PORTLAND. WEDNESDAY EVENING. DECEMBER' 18, 1907. ADVOCATES NATIONAL CONTROL OF RESERVE j 'Annual ItVpoil of Comptroller of Cimviic.v KMi'ly 1 Contains Sup'stion for )Iaint(MiaiK'r of I'nitcd Statrs Hank Financial Situation Reviewed. i Am the only sure solution of the 'financial problem w.ili uhlch lh toun ,tfy It inrronU-J. William R Jlldgcly, ifnlt-d ritutce comi'lrolliT of the cur 'rency, urges the ncillon of u nations! 'central tink of reserve and Issue. In ,hl minimi report, Irun.Mnlttod to eon ,'tre DilM wri'k, tho comptroller dls euea at IctiRth tin) cmisei of the rr ?ciit runi' mid outline hi pn for re-. llef. Th report In hi pall im lunows. Th conditions M. i n icj in mo iui f October and Ni.vnnlHT. 1!U,. were Irot due to tin- f.illiir.; f a few Indlvld ,Udl hunks 'I hcv wre not 1" to 'he Jack of -"l! fllt n.o i.i the pi'ni l I" Hir 'bank, luit rnoi. to In. k or "iill.J. n. -J.f tlm banks In themselves n n.l th.lr iwrvri. Hunks hve l'cn fc.nlul that ithe rtwrvt sjMem would brink down, land In consciuclii c It h.m broken down. nH ih reserve i.ciHlt hsvo been only ' 'n.ril.liu h ., I lii bit'. 'Ihry fri aluo ilesrful 'that not MiffU'lt-nt currency tould be supplied to meet the itcinarid. ...I an Ihev nil ininie tne nemsnu ni nnrp. there 'has not boon sufficient cur !rency. The result li-s been a currency fim 1 n The remedy for tltla Mala of affalra 'la to Improve the ierve system so ' 'that the reserve deposits of tin- banks 'rmn he Went In a bunk where tliey are surely and certainly available. must Impart to uur currency system ome element of clrtstlcllv, so that when "there rumen m suddi n dcminrt for cur ,r'itcy It can be supplied In bank notes without Depleting me auppiy 01 it aerve nicnev. I These two most desirable chanios can Itie bst accnirir.liihcd In fact, tliey can onlv be sntisfactorlly accom'.i:.hc;i . . . i . i, u Kl i u I. m am I.-- I'ii. env "IIIIA.UKI. ii'l' roi.-ur in j ..... rnnient of n central bank of Immi" Hnd I reaervc. Thin la the Hyateni which hna been adopted and found to wotk most ' atlMfHi'iorily In tha great coinmercial Itountrlea of Kurope iirid Is the one that fglvea the aurewt promise of sutlefjctory . iprfatlon In thia diuntry. Such a b:ink moulj not only aolve the two grout problem of our bunking ays Item, but it would alao provldo tlm nia Jfhtnery for conducllng th: treaaury lopera tloiis In their relatlonn to the i)nka with the leaat dlaturbance. The chief wenkneaa of our preaent Stiatlotial bunking ayatem ia tho provla fjon In regard to rrjerve deposit, which trllea reserve on reserve. In reserve clt 'Jea and central reserve cltlea. without 'requiring a aufflcltnt amount of act llial cash reserve on hand. As we have Ken In the present crisis, when a real emergency arises these reserves are not Jreaerves at all. because they may in a (iay bcoma unavailable. Oantral Bank of Baaerra. r It will be an Improvement to add to Jth proportion of r?erve to be held in 'cash by the country Lanka and the re i serve city banka, but the proper aolu itlon of the dlfllctilty Is to increase the 'amount to be held In cash by all the .banka and require all the reaerv depos its to be kept with a central bank or 'rahlaed for that purpose. The Increase in canh reservea from to 10 or even 15 Hon has been allowed to Maud un i li.uigr.1 wlt'iout any attempt to improve pur ir. '1'lils alluutimi Is iwllilng ii. but hns l. .'I) known to all atu.li him of on r banking and cur rem y syMeni and wrltt.n anil talked iibjut for many yearn. It hna produced disturbance und stringency every HUtun u lor iO ears ,an.i panic after panic It Is dire, liy and InimwIlHlely due to this that the crl.la of October, 1!07, assume. the phase of a bank panic and spread all our the rountiy. Instead of being confined to the comparatively few people und concerts who were first In voked, und It iin.toiihtodlv added to Scrofula Is very often acquired, though generally inherited. Bad hygiene, foul air, impure water, are among its causes. It is called "the soil for ! tubercles," and where it ia allowed to remain tubercu losis or consumption is pretty sure to take root. Hood'sSarsaparilla Removes every trace ol scrofula. Get Hood's. For testimonials of remarkable atr4 end for Book an Scrofula, No. I. C L flood Co., Lowell. Mast, .on In a and spread l.'.u business rt dli w ions 'I lie people of u 1 1 the world have been overt rndlriK for years, especially In th I'nlt.-d Ht.ites, an. I the reaction was In vltnbl.t and doubtless desirable, bu nilKht and should have been more Kradii al and should not have had Ms greatest effect on our bunks Many firms might have failed and probably some banks win. h were badly ext. ruled or loaded up with epe. ii lat I e. loans snd seeurltlen We snoiil.t have had a itradil al, though coiihlderablc, redu. t inn In the volume (if all klnJa of business and wholesome period of economy and more normal living and trading J hla wouli have ben. in the end, beneficial and with the won.). M ful recuperative re sources and weallh of tho lulled Utile any business properly managed an based on iluhl conditions would soon have Improved Lnd have lieen as pros perotis an ever. I hero Is no reason s all that our banks, as a whole, ahoul have heroine In.voived aa they have an not only their business, t.ut that of nil their customers, have been so disturbed aa It la today. All that la nee.le.i to hv prevented this Is a proper system of cre.tlt bank-note currency and bank reserves, both of which could have been supplied by tho central bunk of Issue and reserve. If the banks had known that there were facilities for exchanging any rea sonable amount of deposit credlta to note credits without depleting -ash a.; serves, aud, further, ttiut the reservea that thejr had were on deposit where tney wou.d b Immediately and surely available In currency, there need have been no alarm among them. There would have been no scarcity of cur rency; no derangement of the domestic exchange; and there would hive been no panic among the banks nor among the people. 2Tot. cradlta. The only way In which bank deposit credits can ba properly protected from audden and unexpected culls, when all may be Involved at the aanie time, I by system or note credits which can b. at any time Immediately exchanged for the depoalt credlta. 1 hey are essentially th. aame thing, and should be. dally and hourly If necessary, convertible from one to the other, at the option of tho creditor who la toe depositor or note holder. Tha bank of Issue should required, and must In self-defense. keep the aame reserves against notes as agalnnt deposits. IT thin Is done, there is n expansion or Inflation when Trter eent In the rnillitrv banks 'AllM not itieln a bunk verv much when it had any (large demand for Hi deposlta. What fauch a bonk needa ia a safe reserve in 'raah and a further reserve with a bank Jtvhere It la surely available, at any (time, in currency. lnia wouia oe me a note ia paid out to a depositor und no contraction when a note Is returned to the bnnk for depoalt. with a given amount of reserve money, a given total of deposit and notes cm b. maintained. and It makes no difference to the bank or anyone else but the customer, who JcTae' w th reserve-debits "in a ccntr'al ' -e- 'h1?lV at 'T T'T V' bank. Further than this, the deposit-1 the ..f0",11 rtmlin? n the, bank ns a 1 ?Jng bank could be sure that at any time. "e.dU to be checked against or In taken ' Iona- aa it was so vent, t cou d io to "7"' "'"i" . . b ...c 'the central bunk and get any h mount 'Of cash needea on the notes or its eus jtoinera or other good security. With (such a bank to depend on, no aolvont ibank need ever have any fear of Its 'ability to meet all demands. J The present banking law prescribes i a minimum reserve on deposits In cen ; J tral reserve cities New York. Chicago . ..T and St. Louis of 25 per cent, all of (Which must be in the vaults of the bank. I In lawful money. The reserve cities !are reaulred to keep 26 per cent re I serve, one half of vhich may be on de IllOB't ln tne central reserve cities. Banks in all other cities are required to J keep 15 per cent of reserve, of which i three fifths may be on deposit with re- serve or central reserve cities, all three classes of banks being; given credit for I their C per cent redemption fund aa re J. aerve. whenever there is a disturbance among the banka and any Impairment t of confidence this system Is always a 'i. aim ianA n tir AO 1nona (tmtnflrl r at -nn dt.Vi i This Is what may make a panic among fins DunKs oeiore mere is even any decided uneasiness among their depos- ' itors. Tne bangs real in? upon what a .J small margin they depend, and each one, In elf-defense, is compelled not only 'to collect Its loans, b t withdraw its 'deposit reserves. ' I ' Weakness of Present System. ' J Under this reserve system, deposits Of $10,000,000 in country or non-re- ne'rve city banks would call for a cash 5 reserve to be kept In their vaults of but $600,000. They could carry and t count as reserve $900,000 on deposit - J 'with reserve city banks. These reserve frity banks would be required to have Jin the'- vaults cash to the amount of 1 only $112,500, and might deporit $112.- frtioo in central reserve cities, who in turn 2u per cent, i would have to have on hand oj-but $28,125 in cash. To recapitulate this, in the form of a i table, showing cash reserves on deposit ! of $10,000,000: The only thing is to make the note from the circumstances and conditions of its issue, perfectly secure to the holder, which ran be done with absolute safety in a credit note. Our bond-secured bnnk notes offer no help to a bank in any sudden cull for deposits. From their very nature they are fixed currency, issued on the se-eured-eurrency prlnrlple, as distin guished from the credit or banking prin ciple. When Isisued they stay out in definitely, without redemption, merely being renewed on the average once In two years because they are worn out. They can not be Issued or retired quickly, and the purchase of bonds for their security requires as much money ah they furnish when issued. It Is only when the bonds for security can be bor rowed or there Is some government de posit obtained that they nre of nnyj value in meeting oji emergency calling for deposits. Nor will it helD tno situ- ! atlon any to Increase the volume of j minus oiii.iniaojp hs security lor notes t by the banka has been found a very ef ficient m.aiis for their defense, and has, on many occasions, probably prevented a great number of bunk failures din lug I 'li 1. s panics, and there Is some merit In tho suggestion that t lie clearing ho iso should b lecngnlxed by law and au thorised, under certain conditions, to Issue clearing house certlflcules for use as emergency circulation The adop tion of this idea might make a girat Improvement in our banking system, but this Is only a hair-way measure The full development of the nut Iona 1 clearing house Idea In the adoption of thia principle should carry us further an to the Inevitable and logical '.in clusion ami leaaon to be drawn frot.i It, which la that we should have a national central bank of Issue and reserve. Instead of stopping at the issue of clearing bouse certificates, which are really credit notes on a Urge scale, if would Ihj far better to have these notes issued by a central hank under irovern- ment authority an.) under proper laws I unci regulations i nis eouM lie done tar more systematically and efficiently. It would have none of tho disadvantages of the other system, and would huvc all ita advantages, and more besides. It is useless to try to evade this qjueauon or dodgo tho Issue The need I I leal nuestlon Is far morn for something that will pre- I ajj to Postal Bavlnra vent emergencle. snd panics than tor , . aTinga. devices to be used In stopping one ufler n" "r ' "' J"''1"' problems In con- It has occurred The only way to make!!'1" '"" ."" J - I savings bank 1a our system what It should be Is throuah I oe ermine now inr deposits slmul.l i better for the government and would re suit In far better service to the people. Many plans have been suggest. d for the organisation and control of cen tral government bank. An essential feature of It should be that It must be under government control, eo that It could never be monopolised or uaed by any man or act of men. It should be kept out of politics. The men clios.n for Its manager and directors should b. men of the high. at character and ability, whose duties and int. rest would ne for the undivided advantage and In termt of the hank. It would not be difficult to accomplish thia end bv hav Ing the control divided between certain dlrnctora elected by the shareholders and a certain number chosen by the government. The bunk should not be allowed to do a general or commercial business, but should he confined 16 the transsctlnna of the government business, tha Issue or crodlt holes, receiving reserve de posits from other banks, the dlHcotint of their paper on approved security, or re.iis. ounllng notes of their cuatomere for other banks. It should also have the right to dual In I nlted Ktatea gov ernnirnt bonds, and probably tha bonda or ktntea ami nr.nili Itnlltles. but not ln stocks. It should have such authority for dealing In foreign exchange as will enable It to accumulate gold credits abroad and Import gold and bullion when needed for its reserves. Th. miln office of the central bank should be In the city of Washington and such branches established In the reserve und Nulitrciiaury cltlea aa are round nci essai y. Its note IsMies should be credit notes, the ".line as In tierrnuny and France, and they should iavc the Mini protec tion In the way of u very largo gold reor vc. the balance to be covered by bonds of Hie government or. other ap proved Issues or by the notes discount ed bv It for other banks. The central bank. If given the exclu sive right to Issue .rein bank notes, as II should have, could regulate the Issue of notes In i:c.irdance with the demand, which could be determined automatical-! ly and with precision, through It rela tions with the other banks of tho coun try This should not make any change In the preei,l bonrl-sec u red notes of Ihe national bunks, and would therefore not INturli the piiM'nl volume of Ihe cur t'etii y or make any change In the de mand for I'nited Slates government bonds u. a hssis for circulation Sin h a bank aa I .Ic.m rll.e.l. If estab lished, would be n very greil aid In the establishment of the postal savings hank system and make that a real pi.u. - HR raraws Save money by buying j'our clothing bf us we will boys' u th agency of a national aovernmertal bnnk. The experience nf all other coun tries nas nemonsirnieu tins. Kvery im portant commercial country In F.urope as adopted this general plan. If we had had such a bank In operation In 1 10 7. no such hank panic us we have had would have been possible. 1'nless we do something of this kind we shall always be In danger of a recurrence of the same thing, and we shall have panic after panic until we learn th plain lesson from experience and adjnr the only efficient, scientific and proper moans to protect our people In business from such disaster. This Is rt matter t hat s of even greater Interest und Importance to business men. and the peoi.le sen- erally, than it is to tho banks themselves. Where Paolo Strikes. When a panic occurs the banks are able, as they have been ln the last few weeks, to stund together and, throuali their clearing house nssoclatinns and other mesns, cooperate for their own protection. They Issuo clearing house certificates and other temporary cur rency, and by partial or more or less complete auspenMlon of payments tide things over und avoid luilure. Thev , cnn ror ana very properly receive nil the aid that can be given them bv the treasury department and the national government, and the net result Is that while a few banks that ure badly ex panded or Improperly managed fall, th great majority of them are able to tuko are of themselves. While such a condition prevails amonc the banks, the other business of the country la almost In a Ftate of chaos. All tho machinery of domestic exchange suddenly stops. Collections are al most impossible to make, and It is al most equally difficult to make remit tances. When a buslnes man Has obli gations coming due, not only his bank account is unavailable, but the people wno are indebted to him, and who may want to pay, are entirely unable to send him remittances, in any shape, which lie can make available. Manufacturers nre forced to suspend; workmen are thrown out of employment; business men are forced to fail, through no fault of their own, but simply for the rea son that suddenly and without warning to them, fill the banking machinery and laclllties of the country break down and cease to perform their proper functions. There is no cltlscn of the United States who is free from the dangers, losses and embarrassments produced by such a situation, and probably the worst feat ure about it all is that after such a or to accept as security for them other '"In,c there is always a long period of than I nlte.l States government bonds That would only add to the. volume of the rigid. Inelastic notes, such as we now have, and they would be no more responsive to the remands of business. There would be some power nf expan sion until they were all Issued, then they would May out with no more tendency to contract when not needed laan we have at present. They would tend to Inflation, but, having no tern' cy to conirncr. mere would De no ex depression, bringing suffering and pri vation to those who are the least to bin me. There can be no higher duty of gov ernment than the passing of the nec essary laws and the adoption of a sys tem to prevent occurrences which pro duce such widespread financial injury and disaster. The thing ubsolutely es sential for banking is system of tli.n- j( n ! oughly safe bnnk notes, which will bo ( it rpuiiBivc iu uiu u. iiiuims u.irtuien.T panslon possible to offer relief In any emergency calling for current cash or the payment of deposits. What Is need ed in such a case is note circulation which cnn change milokly and auto matically in response to the demand. and contract ihllity Is quite as necessary as expansibility. I he issue of the. so-called emereencv credit notes, with a high tax to retire them when not needed, would be some what better than more bond-secured and as readllv contract us expand; and in addition to this, u. system of bank reserves, which will be real reserves when needed and always Immediately available. ed and always immediately available. Method Successful Abroad. There have been many plans sug- I gested by which some elasticity may be Introduced into our national bank note currency. All or them have more or i Amount of deposits. Cash re serve in vaults. Deposited with re serve, agents. Possible loans. luin.llc I and Invested, or how deposited with the hanks. In m.ler to prevent the po.t.il savings Lank only a. 1 ling In the e mount if money the government now takes nut of circulation The postal savlugs bank funds could he deposited with the central hank of Issue and re serve, and thus be mado available f ir the business of he banks which would lend to their distribution wheievcr needed. I rulouhtei'lv the most practical plan which h..s Ii-oti siiRKe(,., would be to have the stock f the central bank sub scribed by Ihe oilier Links in a fixed pioporil, i to th.!, i.iplt.il. In addition tji this, the;,, micht nis,, lie some shares sold by public subscription, with a limit as to lh amount or number of shares wlll'll could be 1, .1,1 bv anv I n .1 i v 1,1 , , 1 If it should hn deemed advisable, there could be no rdijectlon to the government owning a certain proportion of the shares, which might be paid In cash or in government bonds, but as there would be ro trouble in getting all tho cajilt.il needed this would seem to he unnecessary. The better plan would he to have the stock subscribed by the banks of the country in a fixed n.-r- ccntage of th.-lr capital; have the stock nontransferable, and reoulrn lis .,r. render at It.i pir value when any bank failed r went out of business. The national banks should bo compelled to subscribe for this stock proportion to their capital on entering the system The carltal would thus expun.l as the number of banks Increased and thee would be mora business for It to do The directors of the ,ank should be chosen, two thirds by the shareholder's and one third by the Fnlted States gov ernment. Some of the government di rectors, if necessary, could bo given the right to veto certain transactions and the Interests of the government, and of the people generally, could be protected In tills way. The profits of the bank I Flinuld be Imlted. and the hanU ! i oi.. i. .i ioi uie cenera welfare nnt with a view of making nr. 'fits After providing for the accumulation of a moderate siupl'is the.re should be a re turn to the shareholders of, say. 3 or 4 ;i"r ccr.t. and the remainder of the profits should he divided as In Ger many a small proportion to the share holders and the balance to the United States government. A national central bank organized In this wry, with its profits limited and ts ownership widely distributed, main ly rtmong the banks who were to be Its customers, which wouM not be permit ted to d5 a commercial business, but be limited to trnnsactlrn of business with the povcrnmont and with ,.n,,.r i.ol.. would ret he orcn to the objection urged nrrrilnst the former Tnlfd States "Miks. that they wore really private Institutions; engaged in a general bnnk in? business. S ich a bank would be little more than a department of the government. ii woinn grentiv improve the efficiency and value nf the treasury department and make It a means of risslstnnce and benefit fj business, instead of a men ace nnd a danger and would make our currency nnd banking svstm a source of Impregnable strength in times of financial stress. r?;' the wise use of Its great powers on.I fnoillf i.. it i.i he rhlc to absolutely prevent the re currence in the United States of a wlde "rireid bank panic. Tt would add to the stc'dlltv cf our business In evrv line and irlve us n hanking and a financial system ecual to any in the world. In People'a Interest. The central bank of issue and reserve AW With every purchase of a Boy's Suit or Overcoat -Roller Skates, Watches, Magic Horns, Dancing chanical -Toys of all Lanterns, Tops, Bears and Me- sorts LEADING CLOTHIER this question is submitted for yoir con- The solution of such a vast problem as mis presents is not to be hoped fot In any short time. Opinions are still too diverse to bring about quickly any Mien agreement as is necessary to ac compnsn a neiinite ana rinai result. In the meantime we have a real emer gency to face. Confidence is only in a measure restored, and while there la real progress being made, It Is from necessity very slow. The banks are re suming as fast as they dare, and this Is increasing dally, hut it could bo done more quickly and with much greater benefit to business if some aid could be given oy legislation. If a bill should be passed by congress providing; for som; emergency issue of currency tnrouifh tne clearine- house as soclations or other machinery n&w or ganized and existing, so that the action might promise to be very prompt and effective, it would doubtlesg be very neiprui. If the action taken should meet with such approval and Indorsement as to convince bankers and business men that it would meet the emergency, it might operate as the suspension of the bank act has none in England on several occa sions, and give the relief needed before the provisions of the act ever were real ly in operation. Any measure of this kind, however, to be of any assistance in this emer gency must be adopted very promptly. The Victor Victrola fOR ELEGANT HOMES i i Country banks i Heserve city banks (amount above deposited by coun- 1 try banks ) T Central reserve city banks (amount as above deposited by reserve city banks) . . . . , Total . Per cent of total deposits $10,000,000 900,000 112,500 $11,012,500 $600,000 11?,600 28,125 $900,000 j $8,500,000 $740,625 112,500 $1,012,500 675,000 81.375 Moorehousc "Picture Framers." Traveling moulding men rate Portland at sou samples. They know. We carry 1,000 samples for selec tion, and have the goods all In stock. Posted people recommend our fram ing. K. II. Moorehouse & Co., 312 Alder street. .Both phones. 'Per cent of original deposits 6. 7 5 7.4 9.2 10.12 $9,250,375 84 92.5 i Amount of cash outside original country banks, $140,625, or 1.4 per cent. It will thus bo seen that the coun- ;try I .nk keeps but 6 per cent on hand 1n cash, and of the country bank's re 1 serve deposits the city banks keep but "1.4 per cent on hand in easdi. There is . J therefore but 7.4 per wnt of cash, or i $140,625, kept unlnaneo. anywhere against this deposit of $10,000,000 in the 'country banks. Of this but $140. 6 J." is outside the country bank's own vaults. ' ilf, therefore, there is a reduction in the deposits of the country banks of il5u, 000 out of $10, 000. tOO, or only 1 per cent. It calls for mote cash or reserve money than has been kept on hand for 'the whole $10,000,000 In tha reserve banks. . . - STe Money to Store Crops. Is ft any wonder, then, that the de mand In the fall for about $200,000,000 ' In currency for crop-moving always .makes a disturbance, and that when this demand Is accompanied by withdrawal of deposits and a ;urta"-nent of credits. caused by uneasiness rnd distrust, that the bangs were torcea in seir-derense ; t ' Tiartlally-- suspend payments, ailnnr cl earing: house certificates and various other expedients to furnish cufrencr to meet eucn en emergency t u ne surnt is-i-isr thing Is- not. that there has been such disturbance - -credit and busi ness, but that the situation has been met i wtll.il It has. Freaks vol umes for the credit of the .banks that . they have, done as well as they have, kiul ihan tha confidence of the fiennla in their ultimate solvency and strength. It is tb' greatest possible evidence f the wUdom, .patience,' forbearanoe and knund. conservative sense of our busl bex men. : does ne, "however, speak well . for a (ujilivel wieilora thut this condi- notes, but the high tax would prevent I heir use except when the situation had Ijecomc acute and the emergency very grave. Their Issue would at once be a confession of weakness and a danger signal that no bank would dare make until in desperate condition. They un doubtedly would be useful in emergen cies, and wuld be a great aid in re storing confidence and quieting a panic after it might be well under way, but they would not be an efficient means' of preventing panics, except so far as mere mtgnt be some moral effect from the. knowledge that they would be available in case conditions became bad enough tf justify their use. Oreater Elasticity. The Present hnnk.nntn imni.iin. ,)p "est, improved and made elastic bv permitting the banks to Issue a fixed percentage of their mte-seeured circula- less merit, and all of them have somo serioua objection. The best way, and i is urged mainly in the interest of reo in fact the only thoroughly efficient pie engaged in general business outside and good way. to issue these notes is of the banks as a protection t ,i,Jm through a central government bank. The banks would have no interest in it I 7? AQTi'TtTTPr' PATTVPTT, That is the way it is done in France, except us it aided the general welfare i JlUMlHJMr lAUlSLlJV wnere tney nave naa, lor more man a In la. t it would rather tend to reduce century, a central bank which Is the the profits of tho banks, and would in admirakioii of the world. It is tho ; ter ,cre wit h the business of some banks method adopted after several expert-: holding large reserve deposits The ad' ments in Oermany, and it has worked j vantage to the banks would 'be ln the with great satisfaction and benefit to protection afforded them in the relli all the German people. Business is bllity and mobility of their reserve and very much the same all over the world, i the steadiness and safety it wnuM in nine iu nusiness MAKES TAX LEVY r7 fit' fi Iff 4 s OPEN. CLOSED. A beautiful Cabinet Victor, rich, dull finish mahogany veneer. An ornament to the most beau tiful parlor. ind our problem is so similar to theirs that we should take prolit from their experience and learn from them how to perfect our system. The installation of a proper central bank would not only he a great bene fit to all the business of the country nnd a great protection to our people, but it would solve the problem of the relations of our treasury department to the business of the country. It would give us pot only a reliable arid efficient system in handling our government fi nances, but add stability and safety to our banking system. It would shield and protect the citizen In all the rela tions which are so vital to lilm for the conduct of hia business or the support of his family. From the very necessity of the case our treasury department mupt have vast transactions in the col- i Innianptlnno o nll kinds. If a satlsfact mutual guarantee of deposits by the banks can be worked out It could be done through the means of the central bank better than through the treasury department. Some of the objections to the guarantee of deposits bv the general government would not hold in the case or its l.in(r done by a central bank which might be given power to do that iri Its charter. If the experience of the country In the bank panic from 1 S57 to 1893 needed any further confirmation tho nnr,i e 1 )( r has demonstrated beyond the possi bility of drnlal that perfectly solvent banks, if independent. Isolated units with no power of cooperation except through such voluntary association as their clearing houses, can not protect oi n point; ana says them themselv. lection and disbursement of Its reve nues, which vitally affect the business selves from failure without .... of the country every duy of the year. I pension of payments as to produce dis on .i. i ii. iniiriuization ln all the busi lion or capital in notes uncovered by r against tnese notes. r-?ervArt Jelulre to carry the same reserve as against deposits it will pre serve the similarity vUlch is necessary L-f- Z.h8i110tes.can h" made perfectly per cent witiA ly l"?a ot not ove ve or .even. The addition Vf nuch noten to our system would do much tn i P0 ft lUt 81111 11 18 not believe,? that it would be as efficient or ai sat ,fac- notes Issued by central Think"? t,.,,-1 The use of dearlnir h- " P.""1' In Its relations with the banks and financial Institutions, not only through the funded debt and deposits made with them, but in the collection of revenues and disbursements, the operations of the treasury are so vast and their ramifications so Infinite that it Is of vital importance that they be conducted by the most systematic and efficient means which can be devised. For several years past the revenues of the government, have been largely In excess of expenditures, and there has been a constant problem presented to each successive secretary of the treas ury as to the best maanaof replacing in circulation the money which the govern ment is forced to collect. The method of replacing it by deposit with the nan km is probably the only one available and, although it has been handled with unuaual skill and ability, Is most un-satlsfact-y, unsystematic, and ineffl' cient. It always is a matter which pruvoKes critic-ism and complaint It could be handled with far better-results ir the government had under its control a, central bank to which all revenues could be paid and through which all dis bursements could be tujjde. it would be ness of their customers well maimged, sound, and solvent banks have been dishonored bv having to refusB payment and all, our "commer cial, industrial and financial affairs have been thrown Into . 'confusion be cause the government falls to provide the necessary financial machine m protect them In times nf and peril. No single bnnk or, group of nanus can no uus for themselves They must depend on the government of. tho United States. For this reason (Special Dispatch to The Journal.! Roseburg. Or., Dec. IS. The Rose- burg council last night, at its first ses sion since before the holidays, levied th tax for the year, 3 mills, upon a valuation of $1,822,000. a raise of half a I mill over 1907 and practically on tne same valuation. The mayor appointed three policemen. rne reappointment or Marshal Norman was unanimously ratified, with those of C. Palm and R. larnsworth. In view of the excellent showing the oia council maue. tne raise or tne tax levy was at first thought unnecessary. but when the more extenrlve improve ments that have been proposed were discussed it was figured that tne addi tional half mill would be necessary. The next big expense will be the erec tion or a bridge across Deer creek. COX.DS CATTSE HEADACHE. I,AXATIVl BROMO QCININR re moves the cause. Used the world over to cure a cold ln one day. K. W. Orove s signature on box 2oc. The lover of firood music who lias not a Victor ;hr f.t t.. cannot afford one or is voreiudirrrf hv roaenn iu l. l -a ' , - wi m, mvi uiai uc lias heard only the average cheap Phonograph. The Victor Company has developed the Victor to a beautiful. the Victor Records to wonderful, rich, mellow-toned, non-scratching, perfect RLPRODUCTIONS of the voices of the world's artists. a " Ihe "VICTOR VICTROLA" Has been designed particularly for refined h roundings. In this style all the ear-marW-nf th TML-inrr it-i,:. are eliminated. There is no horn no mechanism visible. Nothing is seen but a beautifully fashioned and finihe dignified and highly artistic the upper part containing the VICTOR Send vnue rfncrMnh,,. I . 1 .. - I 1 1 .. f ...;. . w , utoiiniurc viiv-oidi iiiu jii oi artist records. Drop in and inspect the VICTOR VirTRHT A r send you descriptive circular and list or artist records. Our demonstration rooms are open to von anv hnnr of .i, a,.. or evening from now on to Christnias. CASTOR 1 A Por In&nts and Children. Tha Kind You Kara Always Bought Bears th Signature of LINN'S DIVORCE AND OTHER MILLS GRIND Special nispateh to The Jonrod.) Albany, Or.. Dec. IS. There Is a de cided rush of mlsmated couples in Linn county for freedom. Since the holidays nave neen cieciarca orr 12 divorce cases have been filed and more are ln pros pect. Court business ln L.lnn has resumed normal conditions. Judge Harnett will cbnvene a special session of both de partment of the circuit court in the latter pun or January. Reorganizing Company G. Albany, Or.. Dec. 17. Adjutant Gen eral W. K. Flnser of Portland waa ln the city last evening looking: Into the condition of Company O and plans were perfected for reorganization. The com pany has been without officers for some time. It is probable that Captain C. B Winn of the staff of-the yhird -In. Sherman May Co. SIXTH AND MORRISON STREETS OPPOSITE POSTOFFICE Pacific Coast Distributors Victor Goods Pacific Coast Agents Steinway Pianos. fan try will ,be detailed to take the command. Thirty new names have been obtained. Eastern Bank Closed. (United Press Uti wms.) . ' Attleboro, Mass.. Dec. 18. Bv order of Bank ExamlAer Currier tha .Tr. tiers tutiemu . tank waa ordered closed today. No statement of the condition of the Institution has been made pub- Ho yet ? , Constipation causes headache, nausea dUslness, languor, heart palpltatlonT Drastic physics gripe, sicken, weaken the bowels and don t cure. Doan's Res--ulets set jrenjly and cure constipation. i' -cent." Ask' your druggist. " r I