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About The Oregon daily journal. (Portland, Or.) 1902-1972 | View Entire Issue (Nov. 24, 1912)
THE OREGON SUNDAY "JOURNAL, FOIITLAIJD, .. SUNDAY i:c :NING, NO' l :SES SEPARATION OF Dairy Commissioner-Elect Owes Start to Modest Cow ccrctary MacVeagh ' Says This Would Solve in' Part Currency Reform Tasks, B Y 1IOX. FRANKUN MACVEAGH, Secretary of the Treasury. No reform of our banking end cur renoy system can be adequate which tloea not take the United States treas ury out of the banking- business, we have beoome ao accustomed to the bank ing operation of the treasury that we have not realized how It has developed into a powerful central ; bank. The treasury has greater power and greater assets than the anK or isngiana, wnun for years, has been the Institution at the foundation or international creun. The treasury la the strongest bank in the world rs regards metalllo reserves. Its enormous store of the yellow metal is not approached by' that of any of the great central banks of Europe. At una time the-treasury-was the greatest note-Issuing bank,. and It mltht become to again,;&V;'MV t yrmY. The Bank of -Ensrland, reg-arded throughout the world as the strongest of all banking institutions, supports the BtrHRtura of 'English, credit on a iroM reserve of . less than .1200.000,000. Our treasury! in addition to $l.OQ0,000, 000 of gold held in trust against goiu certificates carries a net gold surplus varying from 1200,000,000 to IJ0M00.O00 Our treasury's hoard of idle gold, in other words, would aupport a greater hank than the Bank of England. When the" independent treasury sys tem was established, the idea was that all the funds of the government should be stored in the treasury vaults in the form of money,- Just as the mediaeval tiar lords kept their treasures in strong boxes. - The Independent treasury sys tem was established In troublesome fi ... ji - . a l tira nunciai cays, r wnen t uw were not the safest places for the de posit of money. Tha people decided that the public funds must be kept in government vaults for fety. r BaUroads Could Soaks a aalo." ; But in these days of well-organised national banks, conducting their" busi ness tinder, the watchful eyes of the Kovernment, everyone keeps his surplus funds in some bank. Not only do pri vate individuals and great corporations bank their funds from day to day, but all the .municipalities and state gov ernments use the banks for the safe keeping of their money. The national government' alone holds to the mediae val custom of keeping its funds stored away in vaults; No other great govern ment does this. In England, France, Germany and other leading countries, government funds are deposited In banks like the funds of any other busi- "; Imagine the v storm bf indignation . that would be aroused If the railroads of this country should insist on being paid for transportation in money, and then board this money for weeks and months in strong boxes. The gross re ceipts of our railroads are in the neigh borhood of f 3,000,000.000 a year. It the railroads - boarded ; their receipts In nioney for only four months they would pile up a billion dollars, or nearly a third of all the money now circulating in the country. If this money were taken out of the vaults of the banks, it would mean such a panic as no coun try has ever seen or ever will see. The banks of the United States have about )lf ,000,000,000 of deposits on a money foundation of $1,600,000,000. The experience of the leading banking countries is that deposit liabilities can be built up 10-for-l against cash la It nL v la central banking centers like New York and London larger metallic J funds are needed, because in these cen ters are accumulated the basic bank ing reserves. The New York banks, for example, keep about f50W,TJ 007000 cash reserves against (2,000,000,000 de posits. loss, of CashOuts .Cradit,L In this country with our rigid laws : fixing the minimum reserves the banks must hold, any loss of cash by the banks means an instant contraction of their loaning power. If the banks of New York and Chicago lose 1100,000,000 cash, . they must at once reduce their liabili ties by 1400,000,000. This means that they must reduce by that amount their loans to the business community." With, the volume of bank credit mov ing in the reserve cities four times as - fast aa the iVdlume of cash, and through out the country 10 times as fast as the volume of cash, It is plain that the ma chinery of credit is eatremely sensitive to variations in the amount of cash held by the banks. For this reason, an in- . jstilution like the United Slates treas ury, alternately accumulating and dis- , uursing many millions of cash, is likely to reat widespread disturbance in the money market. " The funds , held by the great European governments vary from 126,000.000 to 50,000,000. The coin, bullion and paper ' . money - held as assets In the United States treasury during the present ad ministration has varied from $300,000, 000 to $350,000,000. In other words, nearly one-tenth of all the money in the country is field idle . in the treasury1 yuus, u tnis money were all deposited-, in the banks, it would Increase their reeervrtr 2 per eeht. . - ' Soacdiag by Uncle 8am. Tne receipts, and disbursements of the ' treasury are most Irregular. The treas ury receipts in 1907 exceeded the dis- i..un,rincuin uy ,uvu,uuu. Two years 4icr me aisoursements exceeded the re- ; ceipts by $ll,000,000. For the past two years receipts have again exceeded the .disbursements. The general fund in the - FREX TO ASTHMASDFFERERS A Hew Home Cure That Anyone Can Use :; Htuivu iivvum vr jjOgt Of Time. We have a New Method that cures Asthma, and-we want you to trv it at our expenee. No matter whether your cane is of long standing or recent de velopment, whether it is present an oc uaBional or cIronic-ABtbma. our method is an absolute cure. No matter in what ..iiii'i.ir jvu, jive, m mailer wnat 1'Qur f or occupation, -our method wilt cer tainly cure you risht in your own home. We especially want to send itto those uiuiciuiji' ni)tirn cjikps, where all torms ot inhalers, douches, opium prtp Hiiitions. fumes; "natent Biiiokm : U i ltavw failed. AVe want to nhow everyone t our own expense that thlu new irieth , oi will ?nd all difficult luathinir u bi'rln. and all those terribly parux ni at once and for all time. Tills free offer U too important to nepW't a oingl- day., Write now and U.M.-U1 ine cure at uwe. neim no woney. i Dt'iiw " vuupon ueiow. uo tt today run ASTKJttA cotrpoa. VUim?lKM,THM-4ie.v Hewn fi;u C, Niasara and liMdson ts.. But- t;.!o. N. Sf. - . . .. . tend iree irlsl of your piethod to: vlT? Photograph copyright by J. E.' Purdy of Boston. : . Honorable Franklin MacVeagh, sec- retary of the treasury.- treasury was $272,000,000 in 1907; three years later It had fallen to $108,000,000. Under our present system of keeping a large surplus government fund idle in the treasury these wide variations in the yearly balance not only seriously dis turb the. money maraei ana me Busi ness of the oountry, but forctthe sec retary of the treasury to enter actively into the money- market as a paternal overseer of the machinery of tredlt. It not infrequently happens that sur plus revenues accumulate in the treas ury just at a time when the banks are straining their resources to grant all the credits needed to finance a business boom. The treasury then takes money out of the banks and hoards it Just at the time when the country meat needs It. . If the .UWrteM"boom goes so far as to atrain credit to the breaking point, then the treasury must come "to the relief of the situation." by depositing some of its hoarded cash In the banks. In recent years the treasury has been carrying a large surplus, and it has been in a position to relieve financial tension by depositing funds in the banks. In December, 1907, following the money panic, the special deposits in the banks by the treasury had reached $258,000,000. Three years later they were reduced to $4,000,000. In the fiscal year 1908-1909 the treasury withdrew $100,000,000 from the banks. Secretary Has Dangerous power., This' state of affairs places in the bands of the secretary of the treasury a power greater than any American should have, The power or me secre tarr to Influence the money market by .nn.f(, nr withdrawals at tiublln funds' is always dangerous. No government I officer should have this power. It has been a great burden, I believe, on the shoulders of every recent secretary of the treasury department. If the people realised how dangerous is the power in the hands of the secre tary of the treasury, tney would insist that the treasury be at once taken- out of the banking business. Accustomed ss we are to government interf erence rri th th money market,- ?evT" of "lis rearizo" how the treasury in the past ,few yearn has exercised the central bank function fit. regulating, the discount rate. The treasury, by alternate deposits and with drawals of the public money in the banks, as well as by other, devices, has attempted to regulate the discount rate. The treasury department should be divorced from the money market and from the banking business, and the way to effect the reform is plain. We should have in this country a quasl-publie in stitution not only to hold the ultimate cash reserves of the banks and to regu late the rate of discount, but to act as the fiscal agent of the government. Such an institution would hold the govern ment balances as deposits, and the gov. ernment could check against them Just as any , large business concern checks against its balances in bank. - With the government balances deposited in such an Institution, the business of the coun try would never be disturbed by the treasury hoarding up cash, and the sec retary of the treasury would no longer be forced to meddle in the money market-. - ; ; Vew Banking System Urged. Taking the government out of the banking business is only one phase of the reform of our banking and currency system in which all Americans should be deeply interested. The principal re quirements of a new banking and cur rency measure are that it shall provide a practical immunity from serious pan ics such an immunity as is enloied by the oilier leadliig financial nations! that it shall abolish the habitually re current ordinary stringclcies in the money market, which, .keep relations between ,the bankers and the business men of the country almost continuous ly at sixes and sevens; that it shall re move the defects of our domestic ex changes; that it shall enlarge and devel op the facilities of our foreign ex change system; that it shall properly develop the discount market; that it shall wholesomely assist in regulating uie interest rates and making them uniform throughout Uie-eoinrtrrr'-tKflr'rr sheH v an "erid"To the tendency which lorces our bank balances into specu lative channels, and save them for reg ular trade and commerce. To meet the case it ls necesaary to have an elastic I currency, available reserves and every! necessary provision and power both to yenuii. ua j.o cnecK tne expansion of loans. The new banklne system will alxo have to provide with distinctness and completeness ample banking facilities for our foreign, commerce a commerce that with the proper governmental en couragemetk will be world-wide and world-varied. It lx idle to. expect that we Bhall ever have a deveioned for. 'Aflxn '.commerce without a developed rortign hanking system. , Ak long a we have the present bank ing und currency system, we shall have panics and no longer. Does not this alone create a stute of emergency? VVIiat doubt should there bo of the urg ency of this legislation? Why should it take another wasteful and degrading v a'uu 10 impress congress? Why cannot t i iijittrn htm TTianv ninis nothing were to be secured but emanci pation from panics, there -would "be abundant imperative reasons for im mediate action by congress. . ?s Vl:h'lrnn knitting mill is maklng" arnnclal silk from vegetable fibre snd oT.vertlng u juto. hosiery .and. under- w ear. pobd mm DISCUSSALLPilASES OF MONEY PROBLEftl Methods of. Currency Reform -Advocated "by A. Barton Hepburn Meet With Approv al of Banking Men. ; ..In the Sunday Journal for November 1?, !A. ; Barton Hepburn, president of the chamber of commerce of the state New .ygrk,--discussed the striking weaknesses of the prevalent money sys tem, declaring them to make the way comparatively easy for panics In times of financial stress. - This article. 1 the first of a series on currency reform to appear in The Sunday Journal, was J wldely read and elicited much comment front' local bankers, who are deeply in terested In tha manner in which the in coming administration will tackle the money problem. ; In this connection the subjoined statements are of Interest. -;vf. ,.-!, ..mi ,f HEPBURN'S SUGGESTIONS PROVIDE SIMPLE REMEDY FOR ALL FINANCIAL ILLS By J. C. Ainsworth, President United . t. states National Dank. . The article in laV Sunday's Journal by A. Barton Hepburn, president of the New Tork chamber of commerce, on the glaring faults In our present monetary system sets forth in a very simple man ner Its many shortcomings and its aim pie remedy. First, there should be a cen tral reserve under government control, which could be used in time of need rather than an individual .- reserve in each Of our $8,000 banks, none of which by the nature of things can be used when most needed. Secondly,' an elastic currency, backed by the banks' best commercial paper, should supply a me dium of circulation which would move our crops and care for sny legitimate demand, and relieve, rather than aggra vate matters, in time of trouble. Third' ly, and one of the most essential factors in a reformed system, is the creation of a central market for the sale of corn merclal paper, which all banks might avail themselves of. This would make our accounts receivable as flexible as currency itself, whereas they are now locked up for safe keeping until ma turity, and of no avail until that time. Lastly, if this suggested change is shown to be so simple and has proven so practical and successful in' other countries, why has it not been long ago adopted in this country? Tha only rea son it has not been adopted is the fear of many good Americans that the pro posed national reserve association might be misused by politicians or by mon eyed Interests, a fear that, in my Judg ment, is absolutely groundless. The actual gold reserves of our coun try are equal to . the combined holdings of Germany, France and England, and with the above reform in operation this country' would immediately Jump to the front ranfih of . financial oenters of the world and the development of our com merce and industry would increase an hundred-fold. It Is to be hoped that the publicity given this subject by such 'articles as Mr. Hepburn's and those to follow in tha Sunday Journal will help to create widespread Interest 1n a sabject that is the most important that our new admin tot ration will have to nenl mi THE COOPERATION OF BANKS AND PUBLIC IS DECLARED ADVISABLE By George W. Bates, President Geo. W. Bates & Company, Bankers. Tha bank's attention has been called to Mr. A. B. Hepburn's article in last Sunday's Journal, in which he places the blame for panics on our money sys tem. He names three main faults In our present system and shows how the banks were able to relieve the situation during th 1907 panic by co-operating through the clearing-house. . This is a matter that should be of in terest not only to the banks but to the business world In general. If the public could be made to feel the seriousness of the situation It would not be long before it would co-operate with the banks and demand the proper legislation. We hear considerable criticism to tha effect thai banks do- not extend needed credit to the public during times of Loveliness of Skin and Hair CuticuraSoap . - Cuticura Ointment No other emol- f Ucnts do so, much for: poor com plexions, red, rough hands, dandrun, and dry, thin and falling hair. , ; -' Cntlera Bov sad Ohrtmet sold ttimuslWit tke world. Ubval upl of Mali maUed tm, wltk 12-0. knok. AAOrnm "Ootlcurn." Dept. OP, Boston. 1 - r N-TIMmMI km la aambirt mith OtSM curs Bod salvias Suck, liberal wjayM a, Preservedby Oritfnal Investment of f 23 in Bovine; Together With Display of Raw Mark and Well .Directed Energy Ac compllshes Wondcra for John D, Silckle. ;.'..' J . - . . .. '; i ' ffll " 4 h 7 ' t f Nnv A r V (- ' M ' ' " tVi-" "TmZ TL:,.:"-.V' it tt , i t'l' U I'. H , f ,1 i ;; :Vy W'kUi" iV-f'.' -Hi? -if, ff . ? ' . V f X ' J IVf - c?"f J. D. MIckle of Forest Grove, dairy Who ever beard of a cow leading a man Into public office and honor. Hard work and early rising are ordinari ly associated with the care and keep in of the genus bovine, if one. would have profits. . But John D. Mickle, the Oregon dairy and food commissioner elect, will tell you that he owes much of his advance ment to "Daisy." " Daisy Is a cow who is growing old. When the dairy and Iood commissioner- elect, decided to quit a Job in Portland some eight years ago because his health was suffering, he followed the sign, Back to the Sou." He hadn't much stress. Any tendency on the part of the banks to Increase their reserves at this time is due to our system and not to the wish ot the banks. X believe that the plan formulated by the national monetary commission opens up a solution to this problem. It pro vides a plan whereby institutions under state and national charter can redis count their paper and furnish their cus tomers with the amount and form ot credit that they require, This means tha establishment of an elastic . currency system..-.. There has been considerable opposi tion to this bill, brought about, I think, through prejudice and .misunderstand ing. As a result of this there has been no legislation to meet the demand of the times. It Is very necessary that the publlq become familiar with conditions and co-operate with the banks for the common need. . " " . PROPOSED CURRENCY . BILL WOULD HELP SOLVE DIFFICULTIES By Maynard Redmond, Cashier Geo. W. Bates & Co., Bankers. Iii Mr. Hepburn's article on our money system,'! note that he favors a central bank as a remedy. I. too, am in favor of a central bank, providing it can be cre ated politics proof and for the benefit of the national and state and large and small banks alike. I am very much in favor of (he currency bill proposed by the national monetary commission. know there is considerable prejudloe against this bill, , which I think is caused through Ignorance Of the bill, and principally from the fact that Mr. ildrTcfi? wnose" actions ""In the senate have been somewhat, criticised) was chairman of the commission. Under this bill a discount market would be created and a uniform discount ratemalnra3nedr ThWTlntlmes wBen more money is needed to take care of the cropa or in any case of financial stress, it woulj only be necessary to raise the discount 'rate, with the result that the foreign countries would imme diately ship money to 'this country to take advantage of the higher discbunt rate. This is xlearly shown in the case of the Bank of England during our 1907 financial panic The Bank of England raised its discount rate,-and immediately 2&dlfferent countries began shipping money to England to take advantage of the-high discount rate. - As it is now, the only discount' rate we have Is the one created by the operations in Wall street, ' ..... The proposed Reserve association or central bank plan might not be ideal in all respects, but it surely would be a start in the right direction, and one j hlng-l-rrtlirvinthMe-'tt-erTti(d-nwt fall to be a great improvement over our present system, vwbereunder -you might say the banking bus!nessSf this country is dominated by "Wall street. In my opinion the bankers, business men and public at large should put forth 1 every effort to secure the needed' Jeg'iS' latlotit along this line as early ss nogsj- and food commissioner-elect, and some me lop ib juiaisy. -, capital. But he did have a purpose He wanted to start in the dairy busi ness, But he bad to start modestly. He went to a sale of cows' and bought 'Daisy,1 a grader Jersey, for f26r She was five years Old. Since that time she has served a mission of importance. She has produced milk sold for $1040. Her three daughters and four grand daughters sold for J640. She, herself, sold for $80 when Mr. Mlokle wound up 4ia-affairs-on the farm in nrdsr that he might give his entire time to his office. "Daisy" has- represented the best In cows. She has furnished conspicuous return on that original In vestment of $26.. Mr. Mickle became known as one of the most progressiva and Intelligent dairymen In the Tualatin country. His influence spread. His neighbors fol lowed his example and Insisted npon having cows found by test free from consumption. He was called here and there throughout Oregon to deliver ad dresses on advanced dairy methods.- He was daily proving that a dairy of high standard can be made profitable. In his eight years on the farm he In creased his property Interests more than by all his preceding life In town. , When It came to be a question of securing a successor to the present dairy and food commissioner who said that "five gallons Of tubercular milk fed to pigs will kill them; fed to babies. will - make- them," - the popular 'choice turned to Mr. Mickle. The old dairy and food commissioner had rented dingy and dirty offices to administer the duties- of his -off ice in protecting the puDiio against amy and impure rood products and milk. Mickle says he is Dellcions "Syrup of Figs" Best for Their Little Stomachs, liver and Waste-Clogged- Bowels. . Look back at your childhood days. Remember the physic that mother in- slsted..fin?rcastor oil. calomel, cathar tics. How you h-ted them; how you fought against taking them. ." With our children it's dlfferenti The day of harsh physic Is over. We don't force the liver ana au reel or , noweis newTw'iTScWt .' tiUHnVv' :.w " m r dreaded after effects. Mothers, who cling-to the old form of physio simply don't realize wnat tney ao. Tne cmi dren's revolt is well founded. Their little stomachs and tender bowels are injured by them. ;if your child is fretful, peevish, half sick, stomach sour, breath feverish and Its little '- system full - of cold; . has diarrhoea, sore throat. stomach ache; doesn't eat - or ' rest well remember look at the" torfgue.lf coated; give a teaspoonful of Syrup of Figs, then don't worry, because you surely .will have a well, smiling child in a few hours. - Syrup of Figs being, composed en tirely of luscious figs. senna and aro mattes, simply- cannot be harmful. It sweetens the stomach, makes the liver active and thoroughly cleanses the little one's waste-clogged bowels. In a few hours all sour bile, undigested, ferment fin onaUpatad-waala .matter generally moves on and. out of the sys tem witnout griping or nausea, . . Directions for children of all ages, also -for grown-ups, plainly printed n tne paCKage. .v.;. ;:; !- .rr, , Bv all means get the genuine. Ask your druggists for the full name "Syrup Of Figs And Rlixlr of Senns," prepared by .ths .Csllfoi nia. . ilg.,Sirup. CoAci cept nothing else. . , of his prlye milk producers." At . . 1 going to have the brightest, cleanest offices In Portland. i Mickle is planning for the most ef fective administration of the duties of his office. It is said the office Is more closely related to tha health and welfare of tha-people than any other. Bperlmehters with paper" automobile tires In Europe have round them, to have the strength of metal and the re bbejU.. , . . 2L: You Cannot BerTob Particular in Selecting Your A combination only possessed by very J4w dentists. . Our skill is admitted and -vouched for by hundreds of bur clients in all parts of Oregon. " , - Our experience covers a, period of 17; years' active "practice" in Portland always busy. - ; Our reputation for good work and fair dealing has never been questioned. " . ! . Gentleness is one of the cardinal featuresat this office. . Our resourcefulness has "been shown in handling successfully some of the most difficult and unusual dental operations. t OUR PRICES ARE E . DR;:B. V ' t ; ' ;( : and Associates v 1 ' . ; . .PAINLESS jEXTRACTION OF TEETH v'-ti V,:trvJi--:-'-.':'"ir 'i, ? ' '.rf.;-v:';' '.. -t : . :. , . , .r-;:1. V . . . V-i'' "342ViWa8hington-StrfGor.7Seventh - PHONES: MAIN 2110,: A-2119 viv " v ' "t OFFICE HOURS-T 8 A. M. TO 6 P. M. SUNDAY; 0 TO 1 SEVENTEEN YEARS' PRACTICE IN PORTLAND ' ' lea imi) . TO WE 1DAFFB William Eno, Rich New Yorker, to .Tackle Job Made Diffi cult by Willful Speed Viola ''tions of. Drivers. . v , ' ; ; (Onlttd Nm Leased Wire.) -' ; . Paris, Nov, -13. Despairing of eve? bettering ' traffic : conditions' in" the streets of the capitalofficials here have turned to an American, the wealthy New Yorker, 'Wtlllam. P, Eno, to solve the problem for them. But old-timers are doubtful. 'x They say even the man who did so much to regulate the circulation of Vehicles, in New York can have little success here -because -fot ; the, character ' of tha taxi chauffeurs and the cab. drivers, the chief offenders against the rules ot the road. , The police admit that for fcard-headed-ness and willful law-breaking propensl- ' ties, the Paris public vehicle conductor can't be equaled anywhere else in 'the , World. - ' V..-- i ,i'''-'. Vi However, a marailno printed hers, "Je Sals Tout," has asked Eno to tell how he thinks the pussle might be solved, and it is understood he has agreed to give the public the beaefit of hisN years of study on the subject. In New York, ' London and Paris. He has already re- arranged the . movement of vehicular ' traffic in ..several of the more congested streets, and squares. There1 has been a notable relief. But there is still much , to be; done,'', the "police y?j'-'t-? The fault is not with the police. They' are as strict here as in London, "the ideal 4 city for trafflo regulation.; The trou- l; ble comes from the dare-devil taxi driv ers and the: lickety-spllt, stop-for-noth-log cab drivers, who openly defy the po lice, crying Insults in their faces, very " often,' whenever Interfered with. "Give roe tha obedient . drivers and chauffeurs that London has," District Inspector of Street Trafflo Jol train de clared, "and I will guarantee to have as much order In the streets of Paris as they have in the streets of the En glish city." .,..,. v(. " It the rich Mrw Eno can revolve a -scheme, by which he can curb the unruly crars of the automobile, and cabs, he will surprise' the Parisian who knows his Paris also the trafflo squad offi cials. ..:. .v,;:v- r;- ; FIVE SOLDIERS GET- MEDALS OF HONOR tneitH Pm LraMd Wire.) , Washington, Nov. IS. The highest award . that a soldier may expect medal of honor waa presented to five members' fiihe United States army i at the White House today. Four of the number came from San Francisco. They are First Lieutenknt Archie Mil ler, Second Lieutenants Arthur H. Wll- . son and Johnny Kennedy and Quarter master Sergeant Joseph Henderson, all of whom figured prominently In the cap. ture of the Filipino chief, Jlkiri, three years ago. It was for this work they were decorated. The fifth member of the party was Captain Julian Gaujot of the First 'cavalry, who Under a deadly -fire at the battle of Agua Prleta, rode across the border' and Induced the Mex icans to stop the combat as they were endangering American Jiyes and prop erty. President Taft summoned all the medal of honor men. in' and around Washington to be present at the cere mony. . 1 ' He Should Possess Skill Experience Reputation Gentlenesa "Vr "and ; , v Resourcefullness VERY REASONABLE . WMGH T if A