.
JULY, 1914
11
The Commoner
sion and stagnation; our progress punctuated by
panics, discreditable, appalling to many ruin
ous. These have usually como at intervals of
about ten years, more or less, sometimes preced
ed by long months of sickening apprehension,
sometimes foreseen by the far seeing, sometimes
bursting upon us with dreadful suddenness. The
immediate results, seen by all, have been .crash
ing of banks and trusted commercial houses, the
Wholesale stoppage of industries, the wiping
away or cruel draining oC tho results of honest
thrift, denial to willing and hungry labor of tho
opportunity to earn bread and shelter.
We believe one of the most valuable and bene
ficial effects of this new banking bill will be to
make such panics as we have had in tho past
virtually impossible. When there is confidence
there can be no panic. The panic is, as its name
signifies, fear, distrust. When the people know
that their financial institutions are stable, that
behind them stands a Gibraltar of solid assets,
that checks will be honored on presentation and
that their deposits are safe, there is no fear or
doubt. It is a familiar maxim that a bank is
like a woman's reputation, likely to bo injured
by. the faintest whisper. When the banks have
behind them substantially the combined strength
of all other banks, and supplies of currency
ready to answer their needs, limited practically
only by their valid values, malice can not invent,
nor credulity or ignorance accept, reports to hurt
or drag them down.
Nor will their credit or their lives any longer
be held at the mercy of any so-called money
trust Help for their just needs will be theirs
by right, by requirement of law; they can ask
with high confidence of receiving aid, instead of
depending for it on tho doubtful answer of their
supplications. They will not know, as many of
them have known, the misery of begging vainly
for the use of their own money held by reserve
or central reserve banks, and of suffering im
pairment or disaster because of being denied re
turn of what they had intrusted for safe keeping.
'A leading banker of Ceattle, vice-president of
the clearing house, testified before tho reserve
bank organization committee sitting In that city,
a few weeks ago, as follows:
"Let us go back," said he, "for a moment to
the panic of 1907. If we could have drawn our
money in this district from Chicago, New York
and St, Louis, we would not have known that
there was a panic in existence. Conditions were
all right out here, but our resources were simply
tied up and we were helpless."
Understand It is not assumed, or promised,
that this new law will perform the functions of
Divine Providence, shower -lessings on every
body or establish universal prosperity. Nor will
it bolster up or save banks improvidently, reck
lessly, or corruptly managed. It is intended to
enable banks honestly and sagaciously conduct
ed to enjoy the legitimate results of their own
integrity and sagacity. Its purpose is to enable
tho natural and just laws of trade, beautiful,
symmetrical and sane, when undisturbed as is
the law of gravitation to work to their results
naturally and smoothly. It will provide no arti
ficial stimulant or prop. It will remove artificial
barriers to prosperity, unnecessary burdens,
perils and impediments. It can not provide im
munity from such disasters as short crops, great
fires or earthquakes, or disorders at home or
complications abroad. It will, wo think, restrain
the effects of these within the limits of the un
avoidable, and prevent them from being exag
gerated and wantonly magnified in their effects.
It will save prudence and good faith from
sharing the punishment earned by imprudence
and bad faith, perhaps a thousand miles away.
It will guard straight and open business against
the evils brought by crooked and crafty business.
It will protect sturdy conservation and well in
tended enterprise from the violence, the cupidity,
and the mastery of dollars assembled and used
for brigandage; establish barricades about capital
properly employed against what a distinguished
traveler and expert has described as "predatory
wealth." It is hoped and believed that this law
will prevent the alternating money gluts and
money famines daily reported in the newspapers,
by providing supplies of money to flow auto
matically, responsive to need. We can not see
how it is possible with this law that we can
undergo again the dismal, man-killing, heart
racking conditions of 1907 and 1893 and other
"panic years," when money could not be bor
' rowed for any emergency or on any collateral or
terms; or that it will hereafter be within the
power of any group or confederation of finan
ciers, however ravenous, cruel or crazed, to
force a panic or conditions to cause one; for the
money supply may not hereafter bo impounded,
locked up or deviated from its channels; but
should rise irresistibly to the level of tho neces
sity. Tho history of commerce teaches us that tho
business man can provide against ovory danger
that may come in the natural courso of things;
ho is overwhelmed by manufactured explosions
or insidious attacks coming suddenly from roar
or flank. Wo are told that for every disease,
loss or pain nature inflicts she provides n rem
edy; that for every sorrow and trouble permitted
by Divine Providence to como upon tho sons of
men there is alloviation. It remained for tho
rapacious ingenuity, or blundering blindness, of
man, or the two in diabolic combination, to do
vise hurts for which thero is no relief but com
prehensive changes of systems ,nd machinery.
NEW YORK HAS BECOME THE COMMER
CIAL CAPITAL OF THE COUNTRY, THE
GREAT CITADEL OF THE MONEY POWER,
THE RESERVOIR OF MONEY SUPPLY. IT IS
THE WALLED CITY FROM WHICH THE
BARONS HAVE LEVIED TRIBUTE ON A TER
RITORY AND POPULATION VASTER THAN
ANY LORD OR KING OF THE MIDDLE AGES
DREAMED OF, YET SOMETIMES USING
METHODS RUTHLESS AND SAVAGE AS
THOSE OF THE FIERCEST OF THE ROBBER
NOBLES FORAYS AND LEVIES DEVASTAT
ING BY SCIENTIFIC, ARTFUL METHODS; PIL
LAGING UNDER FORM OF LAW, SMITING
WITH SWORDS WHICH BITE DEEP, AL
THOUGH WE CAN NOT SEE THEM, CONSUM
ING WITH FIRE WHICH" COMES INVISIBLE
AND UNSUSPECTED. THE SIMILE SEEMS
STRONG, BUT IT IS JUSTIFIED BY FACTS.
NO SUDDEN SWOOP BY A FEUDAL MAG
NATE ON HIS PEACEFUL NEIGHBORS WAS
A MORE CRUEL OR SHAMELESS PLUNDER
ING EXPEDITION THAN SOME OF THE
TRANSACTIONS WHICH HAVE BEEN
BROUGHT TO LIGHT BY WHICH THE
SHAREHOLDERS OF RAILWAYS AND OTHER
GREAT ENTERPRISES, ESTABLISHED TO
BUILD UP THE COUNTRY AND TO PROMOTE
THE PUBLIC INTERESTS, WERE DESPOILED.
THEIR PROPERTY AND MONEY WERE
TAKEN FROM THEM BY THE MIGHT OF
MASSES OF MONEY WORKING STEALTHILY.
THE RAIDS HAD NONE OF THE ATTRAC
TIONS OF THE PICTURESQUE OR THE
MERIT OF COURAGE. THEY WERE COLD
BLOODED, RELENTLESS SEIZURE OF OTHER
MEN'S GOODS BY PLOTS, TREACHERY AND
BETRAYAL OF TRUSTS WHICH SHOULD
HAVE BEEN HELD SACRED.
Yet it would be foolish, unjust and wicked to
hold New York as a community, or her leading
citizens generally, among whom are men as high
and honorable as any country contains, respon
sible for the misdeeds, treachery and lawless
ness of certain conspicuous offenders. Without
doubt, tho overwhelming majority of the citi
zens of our great cities, as of our people gener
ally, have viewed such violations of laws, legal
and moral, with as great abhorrance as any of
us, and have felt the blush of shame that such
crimes are possible in this enlightened age and
under the form of government which has also
produced our long procession of heroes, patriots
and statesmen.
Every thinking and patriotic American must
exult in New York's splendid achievements; in
the glories she has built, which have made her
tho wonder and admiration of tho world. Tho
people of the south would be ungrateful if they
forgot the generosity of her people when trouble
had come upon them from fire, earthquake and
pestilence, and her purse has been opened wide
to every appeal from any part of the land.
The purpose should be to change the relation
of New York to the country generally from an
attitude of dominating ownership to friendly
partnership. Big as New York is. It is not big
enough to direct the destinies of this continent.
Fast as it has grown, it has not grown so fast
as the United States has grown in wealth, capac
ity, population, thought and aspiration.
No one reservoir is wide or strong enough to
hold and control the money supply for the in
conceivably tremendous activities in which we
are engaged, for our endless variety of industries
and enterprises, our different climates, seasons
and products, our requirements sometimes
crowding and conflicting with each other. No
group of men at any center, however broad In
mental grasp or earnest in intent to seek the
best results for all, can be entrusted safely with
the unlimited and unrestrained control and di
rection of the flowing and recall of supplies of
currency for the needs of the present, and the
increasing needs that will como with tho near
future. ,,'
IN OUR POLITICAL AFFAIRS WE IMPOSE.)
ON THOSE TO WHOM WE ENTRUST AU
THORITY THE MOST CAREFUL AND ELABO- .
RATE RESTRICTIONS. WE DRAW LINES
BEYOND WHICH NO GOVERNMENT OR REP
RESENTATIVE OF GOVERNMENT IS PER
MITTED TO STEP. WE HAVE DECREED
THAT THE HUMBLEST HOME SHALL NOT
BE INVADED BY STATE OR FEDERAL OFFI
CIALS, THE SMALLEST BIT OF PROPERTY
SHALL NOT BE SEIZED, THE MOST OBSCURE
MAN SHALL NOT BE DEPRIVED OF HIS
LIBERTY, WITHOUT DUE PROCESS OF LAW.
YET WE HAVE PERMITTED TO GROW UP
WHAT IS APTLY CALLED AN "INVISIBLE
GOVERNMENT," MORE POWERFUL IN MANY
RESPECTS THAN THE VISIBLE GOVERN
MENT, TOUCHING OUR DAILY LIVES MORE
INTIMATELY AND IMMEDIATELY THAN
ANY GOVERNMENT CAN DO, REACHING
INTO THE VAULTS OF OUR BANKS, THE
SAFES OF OUR MERCHANTS, THE CUP
BOARDS OF OUR HOUSEWIVES. ON THE
POWER OF THIS WE HAVE SET NO LIMIT.
WE HAVE LEFT IT UNRESTRAINED. WE
HAVE ALLOWED IT OMNIPOTENCE WITH
OUT RESPONSIBILITY; PERMITTED ITS
OPERATIONS TO BE CONDUCTED, TOO
OFTEN, WITHOUT POSSIBILITY OF APPEAL
OR REDRESS.
WE DEMAND OF A TOWNSHIP CON
STABLE, THE PETTIEST OFFICER OF THE
LAW, THAT HE GIVE BOND FOR FAITHFUL
PERFORMANCE OF HIS DUTIES; THAT HE
SHALL OPPRESS NO CITIZEN, SHALL FAITH
FULLY RETURN THE FEW DOLLARS HE
MAY COLLECT. UNDER OUR LAWS CONTROL
OF MILLIONS AND BILLIONS OF DOLLARS,
POWER TO CONFISCATE OR DESTROY RAIL
WAY SYSTEMS, GREAT MANUFACTURING
INDUSTRIES, TOWNS AND CITIES, ARE
FORCED TO THE KEEPING OF UNKNOWN
MEN WHO GIVE NO SECURITY, ARE RE
SPONSIBLE TO NOBODY, WHO REMAIN UN
DISCOVERED, AND ACT FREQUENTLY
THROUGH ACKNOWLEDGED "DUMMIES,"
UNTIL SOME ACCIDENT, SOME CHANCE
QUESTION BY AN INVESTIGATING CON
GRESSMAN, OR INQUIRY BY A NEWSPAPER
REPORTER, BRINGS THEM AND THEIR
TRANSACTIONS INTO THE LIGHT. EVEN
THEN USUALLY THERE IS NO PROVISION
FOR RECOVERY BY THE INJURED OR FOR
PUNISHMENT OF THE WRONGDOER, NO
BOND ON WHICH ANYBODY CAN SUE.
BENEATH HIS SKIN EVERY AMERICAN
CITIZEN OF EVERY STATION AND AVOCA
TION AND WHATEVER PARTY NAMH HE
MAY WEAR, IS A DEMOCRAT IN ALL THE
ESSENTIALS AND FUNDAMENTALS. THAT
IS, HE IS ATTACHED PASSIONATELY TO
THE PRINCIPLES OF LOCAL SELF-GOVERNMENT,
OF THE WIDEST INDIVIDUAL
LIBERTY COMPATIBLE WITH THE GEN
ERAL WEAL AND ORDER OF SOCIETY.
THIS NEW CURRENCY MEASURE IS DEMO
CRATIC ESSENTIALLY. IT LOOKS TO DE
CENTRALIZATION OF DIRECT FINANCIAL
CONTROL, TO FINANCIAL LOCAL SELF-GOVERNMENT
SO FAR AS IS CONSISTENT WITH
STABILITY AND THE GENERAL SAFETY:
TO A CURRENCY WHICH WILL BE WORTH
ITS FACE VALUE EVERYWHERE, WHICH
WILL BE BASED ON THE ACTUAL VALUES
IT PURPORTS TO REPRESENT, AS WELL AS
THE FAITH AND CREDIT OF THE GENERAL
GOVERNMENT, AND WHICH YET WILL BE
ELASTIC, EXPANDING TO MEET NEEDS
WHERE AND WHEN THEY DEVELOP, RE
CEDING WHEN NOT NEEDED; A SYSTEM
FITTED TO MEET ANY EMERGENCY; MOV
ING SMOOTHLY AND NOISELESSLY FOR
THE ORDINARY USES OF BUSINESS IN
TRANQUIL TIMES.
Too much money and too little money are
alike evil and dangerous. Opinions differ as to
which is the worse. Probably one Is as bad as
the other. The design of the new law is to sup
ply just enough money, or credit, whea and
where business needs it, to create for our com
merce, as has been said, foundations so even, so
broadly laid and o deeply planted that they can
not be shaken.
As it is, the country bleeds and sweats to the
big financial centers. Take the south as aa in
stanceand the conditions with which yom here
In North Carolina, are familiar exist rerywhere
in the country. Most cf or railway systems are
controlled, freyetly tmremg the trust kaow
as the votln tmefr fcy mm who are lntret4
(ComtlAtted om pave Ib.y
