Rensselaer Semi-Weekly Republican, Volume 35, Number 121, Rensselaer, Jasper County, 2 October 1903 — MODERATION URGED [ARTICLE]

MODERATION URGED

Senator Beveridge Gives Timely Counsel to Indiana State Bankers’ Association. FOR OUR COMMON PROSPERITY Conservatism the Keystone a? Business Stability—Steady Legislation. No Sweeping Changes—Bankers Noi the People’s Enemies; People's Prosperity -the Bankers' Welfare— Citizenship the Only Class. Id bis address to the Indiana State Bankers' Association that has just come to a close at South Bend- Senator Albert J Beveridge urged moderation as the word of wisdom in all legislation. The meeting wafc notable In point of both interest and attendance. Among the speakers besides Senator Beveridge were Congressman Fowler and Captain W. H Hart, exauditor of state. Particular interest attached itself to Senator Beveridge’s otherwise magnificent address by rea son of his prominence and Interest in financial legislation. He said: The coming session of congress will not enact any radical or sweeping financial legislation *" Except Id great emergencies moderation is the word of wisdom in all legislation. Of no class of legislation Is this more true than at the present moment The stability of financial legislation, ever though imperfect. Is more desirable than sudden and comprehensive changes, even though these changes are toward greater perfection of our financial system. It is Important in dealing with the delicate subject of finance that all changes, even though they are advances in the right direction, should ♦be Jiade with caution! The financial iyirams of every country are growths and not creations In reviewing the history of all legislation in this and other countries it has not been found that comprehensive schemes struck off from the brain of even the ablest men, which on paper and In theory seem perfect, were entirely successful In practice. On the whole a financial system gradually evolved out of the natural requirements of business works better than the most perfect system devised in the office of the statesman or in the study of the philosopher.

"Moderation, Caution, Safety.’* Some moderate firftmelal legislation which •will relieve the periodically recurring money stringency In the money centers is probably desirable and may be enacted. But such legislation •if enacted will be simple in its: nature and will not disturb or alartn ttje business interests of the country: because its consequences will not be farreaching and, to all thoughtful minds, will be plainly beneficial. No legislation Is possible at the coming session of congress which will radically affect our entire currency system and cause the business world to pause In our present prosperity until It Is seeu how such legislation Is going to work. Moderation, caution and safety are the words which will control the action of congress. Moderation, caution and safety are the words whidh are uppermost in the minds of the business men of the nation and of the .whole people. This is neither the time nor. the place for extended argument for or against any proposed reform in our financial affairs. tew simple and fundamental help to a common-sense underffajiding of the problem of finance as relafod to business more than any amount of argument. For example: The total volume of money of every kind and description In the United States Is a little more than two and one-half billion dollars. And yet the'internal commerce of our country each year amounts to twenty billions of dollars. That is to say, our own transactions among ourselves and which wo do not extend beyond our boundaries exceod twenty billions of dollars every year—» volume of business within our own borders eight times greater than the total volume of our money. Business Based on Credit. This twenty billion dollars of Inter-, nal commerce is a very low estimate. It is based upon the yearly value of our products and exchanges In larger transactions. It does not Include our countless small transactions. It docs not include the' flood of commercial paper not available for statistics which cannot generally be traced. Were all of these Included, it is likely that a fair estimate of our business transactions with one another would not be far from forty billions of dollars a year,. or sixteen times the amount of all the money there Is In the United States. This excludes the incalculable volume of commercial paper In renewals and exchange for other commercial paper, which might be properly Included and which If Included would swell the total of our Internal business transactions into hundreds of billions, or hundreds of times the total amount of our own money. As everybody knows, business is conducted upop various forma of credit Impair credit and business Is Impaired, no matter how much money you have. Sustain credit and business thrives In spits of the comparatively small amount of actual cash In U># nation. Bo wa iM that the maintenance of Credit la the one great flaanclal guts-. lion and always moat be. And credit

b only another name for eonfldenca. So the real 'question Is: What wilt continue the confidence that prevails throughout our business world. an& what will impair that confidence? Steady Legislation—No Sweeping Change. Cpnfldence la preserved by reason*, bly permanent adjustment of business to any given lineq of financial and com mercial policy more than by ill other things put together. I do not mean that there should not be gradual changes in all 01 our laws as those laws here and there become oi late; but t do mean that it is better tor business to steadily adhere to some settled line of policy than to suddenly and radically change it. Be-, cause if some sweeping change were enacted Tnto law, no mattei nqw perfeet a system that change would bring about, the bankers ,and business men of the country would alt tight tor a year or two years to aee how it was going to work. That would mean that the whole machinery of our business, which is running on credit, would slow down almost to the stopping point during this period of waiting it would meaD the ' temporary destruction of confidence and therefore the temporary abandonment of our prosperity The Common American Brotherhood Confidence Is also maintained by the belief that everybody in the country is working for the common good The most fortunate development in American history is the spread of this conviction of common American brotherhood and the corresponding decrease of prejudice among ourselves. Of this the relations of the people to the bankers are the most conspicuous illustrations. It has dot been many years since selfish politicians attempted with some success ~0 make the people" believe that the bankers were their natural enemies It was said and believed by many that the bankers’ business was to despoil-the people. It was said and believed by many that It was the hankers’ interest to rob the people of thfeir prosperity It was said and believed by many that the pros perky of the ban kens meant the poverty of the people Prosperity of People and Banker inseparable'But this period of folly h'as passed. No one but the crude demagogue now makes assertions so absurd Everybody understands today that the prosperity of the people and of the banker is inseparable Everybody knows today that the banks cgnnot make any money except when 'the people are making money. Everybody knows today that the banker has no source of Income except Interest on loans and charges for exchange. And when times are hard the banka make fewer loans and have fewer exchanges, and therefore smaller Incomes. When times are good loans are numerous and exchange rapid and abundant and. . therefore, the bank’s Income Is .ejp larged. It is now-well understood that the farmer, the laborer, the storekeeper. the manufacturer and the banker are a great partnership whose inter est.s are not only similar but whose Interests are one and the same. Tbe prosperity of the banker, storekeeper, workingman, farmer, manufacturer and ail men of legitimate occupations stand or fall together. Citizenship the Only Class. §o that any man who wishes to continue bis prosperity must set bis face against any agitator who attempts to influence the people against the banker, the lafioringman against the eraplover, the against the manj ufacturer, or the reverse of any of ; these. I do not think our country has any serious dangers in Its future: but if It has one, that one Is the possibilthe creation of separate - classes in the republic and the warfare of one class against another class. A republic cannot survive class hatreds. The word ''republic” and the word "classes” are In deadly antagonism. In a republic there can only be one class, and the name of that class Is citizenship. There can only be one watchword and that watchword Is brotherhood. There can only be one policy and that policy is loyalty of every citizen, not to or to some class to which he belongs, but the common good of all the people of the republic. Preach and Practice Prudence. We all become Intoxicated In periods of good times with a desire for too rapid Increase •of our Individual wealth. This of courso Is a subject which no legislation can reach. All that any man can do Is to preach prudence and to practice 1L And so again. In the conduct of the business of every bank In the country that word should be dominant which also ahould he dominant with us who are sent hy tbe people to enact Lpe na... tloo*a laws, and that word Is the word wjth which I opened this address —the all-W!se word “moderation.” There never was a period when the tide of prosperity has risen so high as now; and Its highest point Is noL yet reached. But upon tbe shoulders of tbe bankers of the country more than upon any one set of business men depends the continuance of this fortunate condition. But If confidence In the business world is impaired, the Influence which welds all these elements Into effective and practical prosperity will fall. And yet If the bankers without reason indulge in vague apprehensions they will tbemaelvas bring about the very thing which they unreasonably fear. If the bankers begin to Mercian cowardice Instead of prudence; If without any_reason except timidity they begin to contract their loann and reduce* their credits, that confidence upon which all business rests and of which the bankers them* I salves are the beneficiaries will be bar •aired. • L