WEDNESDAY, DECEMBER 31, 1913.
SANTA FE NEW MEXICAN.
i Happy New Year!
bright with prospects and
the realization of your many
hopes, is the
Sincere Wish of Your Friends,
WINTER GROCERY GO,
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
SANTA FE, NEW MEXICO,
SALT LAKE CITY, UTAH,
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
(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
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
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
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
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
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.
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.
ASK Foil TICKETS
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
In Flushing the animals run through
the streets in herds and men and boys ;
WPre bxicy for hours clubbing then tft 1
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.
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.
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
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'
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.
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.
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-
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
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
Remember the name Doan's and
take no other.
MULLIGAN & RISING,
License Numbers, 66-67. Day or Night Phone, 130 Main.
Next Door to Postoffice.
LUMBER, LATH, CEMENT,
22 San Francisco St. Phone 206 W
SANTA FE, N.M.
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
Store, Galisteo Street.
Phoni 177 J.
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.
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