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WEDNESDAY, DECEMBER 31, 1913.
PAGE TWO SANTA FE NEW MEXICAN. I I 1914 77 i Happy New Year! 3 3 bright with prospects and the realization of your many hopes, is the Sincere Wish of Your Friends, WINTER GROCERY GO, IPECOnSTJEC 40. HH3 RADICAL LEGISLATION WHAT NEW CURRENCY POSTPONED ! LAW TRULY MEANS A WAIT WILL BE ORDERED UNTIL A MORE NORMAL AND BETTER CONDITION THIS IN ANSWER TO THE POLITICAL HOWLS OF STANDPATTERS. illy Gilson Gardner.) Washington, I). C, Dec. 31. Presi dent Wilson has determined to post pone all radical legislation indefinite ly, pending the return of more normal and better business conditions. The l trusts are not to be prosecuted, the i Sherman law is not to be amended, l he telegraph-telephone monopoly is i.ot to be postallzed, the New England railway merger is to be settled by ar rangement between Morgan & Com pany and Attorney General McRey- CAPITAL COAL YARD CrOSl AND RETAIL WOOCl PHONE 85 MAIN. SWASTIKA LUMP FACTORY WOOD CERRILLOS LUMP SAWED WOOD STEAM COAL CORD WOOD ANTHRACITE COAL, ALL SIZES. Montezuma Avenue, near A., T. & S. F. Railroad Depot lUe Denver & i Grande 1 1 Go. Great Salt Lake Route Scen'tctLh'e"Worll Round Trip Excursion Fare $34.50 SANTA FE, NEW MEXICO, -TO-- SALT LAKE CITY, UTAH, Account Convention NAT'L WOOL GROWERS' ASSOCIATION January 15th, 16th and 17th, 1914. Tickets on Sale, January 12th. and 13th, 1914 Final Return Limit, Jan. 31st, 1914. Stop-Overs Allowed in Both Directions Within Final Limit. IT REALLY ESTABLISHES A GREAT NATION AL CLEARING-HOUSE FOR CREDIT AND OPENS A NEW ERA FOR AMERICAN BUSINESS! (By Prof. Jas. Laurence Laughlin, head of Department of Political Economy at Chicago University and Author of "Principles of Money.") (Copyrighted, 1H13, by the Newspaper Enterprise Association.) This measure stands out as the most important legislation on banking and currency since the Civil War. Its ob-1 vious purpose is to make both our currency and credit system more elas tic, and to remove the possibility of frequent paroxysms of credit. Before nolds and possibly the railroads are Wilis, we have had a highly individual' tj have a five per cent increase of listic system of over 24,000 banks, each lieigli rates. Everything is to be done ! acting for itself. The new law is In fer "better business." I tended to introduce co-operation for This matter was talked over at a j tlie common good. In our principal iccent cabinet meeting, and while cities the banks, without any legisla some members of the cabinet have!"0". have through clearing house as not agreed with the president as to jfoc.atlons established local co-opera-the wisdom of this course, all accept tion. which has helped to mm.mize the abundantly secured not only by 120 per cent of picked commercial paper, but also by a gold reserve of 40 per cent, and a first lien on all the assets of the respective reserve banks taking them out. If, however, the reserve banks should ever fail to redeem them an almost impossible contingency tbey would be redeemed by the treasury of the United States. Banking experience has long Bhown that a note circulation cannot stay out in excess if there is prompt and imme diate redemption. This is fully pro vided for at the reserve banks and at the treasury. iMoreover, when in the course of business, these new notes come in to the reserve banks, they cannot pay out any but their own notes, being obliged to send the notes of other reserve banks home for re demption. Thus the possibilities of undue expansion of note issues are re : iced to the minimum; while elastici ty is secured. Expansion through 'cans not based on sound transactions i i the one thing to be watched. The new system can be successful only by careful scrutiny of loans. If wisely managed in this respect, the country will have entered on a new stage in its dt velopment of banking and currency, ami business will greatly profit there-j by. ! TlGHTl I PRACTICAL JOKE WENT WRONG WAY recognized that the president is the t,ian most responsible and most large ly affected by political happenings and il is his right to direct the course of his administration. Vice-President Marshall was taken into the president's confidence and has been correctly quoted in his state ment that no immediate trust legis lation is desirable or necessary. The Vice president declared in favor of waiting to see how business would adjust itself to the tariff and currency laws. it is known that Postmaster Gener al Burleson has given up for the time being at least his intention to press for poslalizutlon of the telephone tele graph wires, although he recommend ed this in his annual report and of fered to furnish congress with the data proving the desirability of gov ernment ownership and operation. In accordance with this decision Repre sentative John A. Moon, of Tennes see, chairman of the house committee on postofllce and postroads, has with held his proposed bill, and Representa tive David J. Lewis, of Maryland, is I lie only one who is still actively at work for postalization of the wire services. IN THESE DAYS OF MODERN METH ODS, Electricity playa a most Impor tant part. The grandfather would be amazed at the radiance of the mod ern home and why all this light? To make the home more homelike to make the home the most pleasant snot on earth for father, mother and children. Good light that is easy on the eyes is very much to be desired. effects of stringency and panic. This I act aims to extend something like cnnii;nlunl anHnn mm,, all n'lt'fo nf tllO I Pittsburgh, Dec. 31. A supposed , 4 . . I practical joke almost ended fatally Unconsciously to many, our business ; fabric has been developing in such a j ,e ,,, a contractor, way as to enable an exchange of goods i Christmas turkey. to take place mainly by checks drawn , u""h on bank deposits. Only in purely rural j The next morning the turkey was districts are money and notes abso- Ue. He told his friend, Louis Trax, lutely necessary to buy with. Yet i i wagon manuiaciurer, oi me iu6B, ; the idea is widespread, coming down 1 and Trax "joshed" bim. j to us from times when our money- ; That day, at noon, Trax bought a i economy was generally "rural," that ! turkey and in the morning it was tak- J our great need in time of crisis is en. j more "money," although any hard- : At mjdnight, Trax, thinking Cuu-1 pressed borrower who can get a loan ; uingham had taken the turkey for a ! at a bank can meet his maturing debt by a check on that hank. In fact, the more we look into the facts as in the panic of 1907 we find the center of the difficulty in the lending power of the banks. When panic-stricken per sons draw down the reserves of the banks they lessen the power of the banks to lend. Therefore, a measure which will, in time of danger, help out the reserves and the lending power of the banks is of chief importance nf far more importance than lncreasiiiR the money in the hands of the public which serves as a means of exchang ing goods; because we have a highly developed medium in checks (a tie- WM. M. SCOTT, T, F. & P. A.. 244 San Francisco Street, Santa Fe, N. M nnsit currency). This organization or Following the compromise made by credit should be the central point in a the UellW estern union telephone-tele-1 great currency measure. I. A. HUGHES, C. L. POLLARD, R. J. CRICHTON, President. Secretary. Manager 4 Treasurer. laph monopoly with the department nf justice and the dropping of the suit against the trusts, it is understood there are to be other compromises with the trusts which have been un der threats of prosecutions for vio lations of the Sherman act. President Wilson voiced the new policy in his speech to congressmen at the signing of the curfency hill. This epoooh mny be liberally interpreted as an assur ance to big business that It is to be permitted to go along for a while on a species of probation without govern ment harrassment for violations of trust statutes in order that they may t:hov their good faith and willingness !o live up to present laws, and pos- jFibly to escape drastic regulation by hgisalion or prosecutions in the fu- The Organization of Credit. How has this purpose been carried out in the new act? Instead of one central bank, we shall have at least eight regional banks in as many dis tricts into which the country is to be divided (probably in Boston, New York, Chicago, St. Louis, San Fran cisco, New Orleans, etc.) The banks in each Uatrot pbo.tjtjr ihn oupitnl to their own federal reserve bank which can lend to any member bank, but not to the public. In time of stress when a member bank Is hard pressed by borrowers, that bank can lake its picked short-time commercial paper (these are the notes given by borrow ers and held by the bank in its assets) to its federal reserve bank and with this as security get a loan (called a joke, went in an automobile to the latter's home in a suburb which is without police protection. He was prowling about the house when Cun ningham appeared with a revolver. He saw the "burglar" and fired, the bullet passing through the arm of Trax's coat. Trax was chased into a hayloft and Cunningham kept guard until daylight, when the mistake was discovered and explanation made. POWER NOTHING IS QUITE SO CONVEN IENT as to touch the button and your stove is ready to cook your Iron ready to use, your toasted ready for the hurried breakfast, your vacu um cleaner ready for the fray, your washer ready to cleanse, fan ready to cool the heat ed rooms. Electricity will do every thing for you. We furnish it at reasonable rates, day and night' Estimates and full infor mation cheeerfully given. SANTA FE WATER & LIGHT CO. RABBITS RUNNING THROUGH STREETS ASK Foil TICKETS SHIP YOUR FREIGHT New- York, Dec. 31. A plague of habbits, which according to those who i have suffered, is of maguiture equal j to the various plagues of the days of I the children of Israel in the land of 1 Egypt, is today preventing residents of certain section of Brooklyn, Flush- j ing, L. I. and other water front dis tricts from worrying about their own troubles. In Flushing the animals run through the streets in herds and men and boys ; WPre bxicy for hours clubbing then tft 1 death. j Several persons were injured during j the battle. . i FROM SANTA FE To El Paso, Bisbee, Douglass and all points in New Mexico, Arizona, Mexico and to the Pacific Coast, via NEW MEXICO CENTRAL to Torrance thence. I FAIR EXCHANGE lure. It is hoped that during this rediscount ). i lie proceeds ot uns period a feeling of confidence will be I loan ta" ue um " """"" restored and if there is any lack of Lumber and Transfer Co. (INCORPORATED) HEADQUARTERS FOR LUMBER OF EVERY DESCRIPTION. Shingles, Cement, Plaster, Roofing and Build ing Materials of Every Description. AGENTS The FAMOUS DAWSON COAL GENERAL TRANSFER BUSINESS AND STORAGE Your Business Solicited. Phone 100 and 35 W. :: Foot of Montezuma Ave. I prosperity it cannot be attributed to j political or governmental action. This policy is an answer to the po litical calamity howlers like J. Mann, Joe Cannon, Joe Fordney, Jim Elihu Root and Boss Barnes, who have pre j ducted that reactionary Republicans I would be called upon later to save the j country from the hard times inevitably l i-roduced by Democrats, j Secretary of the Treasury McAdoo looks for a general expansion of busi ness and confidence from this time on. The tightening of money Is due, he be lieves, largely to the fact that tin national hanks have discounted the passage of the new currency law un der which statute the national banks are required to become investors In ihe reserva banks. The national banks have been contracting their loans and accumulating cash reserves in order i New Back for an Old One How a Santa Fe Resident Made a Bad Back Strong. The back aches at limes with a dull indescribable feeling, making you weary and restless; piercing pains bank as a part of its reserve as long as shoot across the region of the kidneys they are left on deposit with the fed- and again the loins are so lame that eral reserve bank. to stoop is agony. No use to rub or What is the result? The member iapply a plaster to me Daciv n .ue riu' The Best Route East or West For Rate and Full Information, Address EUGENE FOX, G. F. & P. Aft, El Paso, Texas. bank has now its lending power touch ed, and as long as its customers can present short-time (90 days, etc.) com mercial paper, based on a sale of goods, that bank can lend to them. That is, no firm doing a legitimate business in buying and selling goods need never in the future go into bank ruptcy for lack of a lean. This fea ture is the core of the new act. Control by Reserve Board. Obviously, if there are several fed eral reserve banks, they must be uni fied by some supervisory control. This is the function of the federal reserve board of seven to be appointed by the president. This board may examine accounts of the banks under it; su pervise note-issues; locate reserve cities; suspend officials, if necessary to be ready on the passage of the bill lin reserve banks; suspend reserve re- NEW MEXICO MILITARY INSTITUTE R0SWELL, NEW MEXICO. 'The West Point of the Southwest. Ranked as "Distinguished Institution " by the U S. War Department. E Lokted in the beautiful Peoos Valley. 1.700 feet above tea level, sunshine every day. Ocen alt work throughout the antlre ses Ion. Conditions for physics! and mental development are IDEAL such as cannot be found elsewhere In America. Four teen officers and Instructor, all graduates from standard East ern coheres. Ten buildings, modern in every respect. accents : E. A. CAHOON, President. J. E. RHEA, Vice President J. P. WHITE. Treasurer. JOHN W. POB, Secretary. W. A. PINLAY. ' For particular and illustrated cats- fue. address, COL.JAS.W.WILLSON,Sopt. M to take their shares in the new re serve banks. This contraction of leans has made itself felt in the credit markets throughout the country, and has had a direct and indirect effect cn all commercial business. This cause, added to the shortage of crops, are the two principal reasons, it is be lieved for the present industrial let-up. The second reason will soon cease to Operate and the first has already pro duced its maximum effect Therefore, with assurances that business is to be free from legislative or executive interference for an indefinite period, the uptrend is confidently expected. BRAN AND CORN ARE BEST TO MAKE MILK Washington, Dec. 31. The depart ment of agriculture has just concluded a series of experiments to determine the effect on the flavor of milk of feeding different kinds of rations to cows. The department has decided in favor of bran and corn. The experiments were conducted ta ascertain the corrections of tlie the ory of some dairymen that the feed ing of crushed oats to cows would im prove the flavor of milk. Six cows were used in the experiments. In all. 50 opinions were passed on the various samples of milk form those cows. Of these. 1C showed a prefer ence for the milk from cows fed on crushed oats, 5 preferred that from the bran and corn rations, while nine expressed no choice. The resudts says a statement issued by the department, "show the ration containing bran and corn was most successful in producing a fine flavored milk." i quirements for a period of 30 days; and, in an emergency, require one fed eral reserve bank to lend to another. Objection has been made that a board (appointed by the president places our credit system under political control. That might be true if banking opera tions were conducted by this board. As a fact, the work of this board, while important, is chiefly administra tive and supervisory, but the lending on commercial paper is carried on only by the federal reserve banks (whose customers are the member banks in each respective district). This is a pivotal matter. Elasticity of Notes. The elasticity of credit to be gain ed by the provisions just mentioned is of first importance; but the elasticity of the bank-note issues, although sec ondary, is in a high degree essential to daily transactions. The act makes no change in our gold standard or In the greenbacks. Our present nation al bank notes have been long admit ted to be unelastic; and these are to be gradually replaced in twenty years by a new kind of money called federal reserve notes. That these notes may be properly elastic, not only automatic expansion, but contraction is essential. Thus, while there is no limit placed on their maximum amount, they can be expanded only in proportion as picked short-time commercial paper is taken by federal reserve banks to the fed eral reserve board and exchanged for reserve notes. Thus they can be expanded only as the transactions in goods are expand ed on which the commercial paper Is based. This is the only way these notes originate. They cannot be cre ated and paid out by the government for Its debts. Thus they are essen tially bank notes. Their safety is neys are weak. You cannot reach the cause. Follow the example ot this Santa Fe citizen. Miss Adela Arias, Santa Fe, N. Mex , says: "I suffered from a dull, heavy ache in the small of my back. I was frequently bothered by headaches and dizzy spells. I felt tired and didn't have any ambition. Doan's Kidney Pills cured all these ailments, and I have been in good health ever since. If a cold settles on my kidneys, I take a few doses of Doan's Kidney Pills and they fix me up all right. When I first used Doan's Kidney Pills was so grateful for the benefit they gave me that I recommended them. I think just as highly of them now, as I did then." For sale by all dealers. Price 50 cents. Foster-Milburn Co., Buffalo, New York, sole agents for the United States. Remember the name Doan's and take no other. MULLIGAN & RISING, FUNERAl DIRECTORS License Numbers, 66-67. Day or Night Phone, 130 Main. Next Door to Postoffice. LUMBER, LATH, CEMENT, WINDOWS, DOORS AND MOULDING 1. J. SAWYER 22 San Francisco St. Phone 206 W SANTA FE, N.M. YOUR: ijfGw Years PURCHASES Will get perfoml cttention, and the goods you get will be first-class In every respect and just a trifle cheaper, because we are not investing our mon ey in Plaza High Rents. See the point ? Phone FACUNDO ORTIZ, Store, Galisteo Street. Phoni 177 J. CHRISTMAS HOLIDAY RATES ONE MID OK THIRD FARE For the Round Trip Between All Points on the A.T.&S. F. R.R. IN NEW MEX., Also to All Points on the A. T. & S. F. R. R. IN COLORADO, Trinidad to Denver inclusive. Dates of Sale, December 23rd, 24th, 25th and 31st, and Januaay 1st, 1914. Return Limit, January 5th, 1914. HOLIDAY RATES FOR STUDENTS I TEACHERS For the benefit of Students and teachers tickets will be gold at rate of one and one-third fare for the round trip be tween all Do-'nis in New Mexico, including Coast lines west of Albuquerque, on December 19th and 20th on condition that such parties present certificates from teacher or princi pal of the school, showing attendance at said school. Minimum selling rate, $5.00, return limit January 5th, . 1914. - For particulars, call on any agent of the Santa Fe. H. S. LUTZ, AGENT, Santa Fe, - - - New Mexico.