Increased activity in industry, with its welcome attendant--a larger
employment for labor at higher wages--gives to the body of the people
a larger power to absorb the circulating medium. It is further true
that year by year, with larger areas of land under cultivation, the
increasing volume of agricultural products, cotton, corn, and wheat,
calls for a larger volume of money supply. This is especially noticeable
at the crop-harvesting and crop-moving period.

In its earlier history the National Banking Act seemed to prove a
reasonable avenue through which needful additions to the circulation
could from time to time be made. Changing conditions have apparently
rendered it now inoperative to that end. The high margin in bond
securities required, resulting from large premiums which Government
bonds command in the market, or the tax on note issues, or both
operating together, appear to be the influences which impair its public
utility.

The attention of Congress is respectfully invited to this important
matter, with the view of ascertaining whether or not such reasonable
modifications can be made in the National Banking Act as will render
its service in the particulars here referred to more responsive to
the people's needs. I again urge that national banks be authorized
to organize with a capital of $25,000.

I urgently recommend that to support the existing gold standard, and to
maintain "the parity in value of the coins of the two metals (gold and
silver) and the equal power of every dollar at all times in the market
and in the payment of debts," the Secretary of the Treasury be given
additional power and charged with the duty to sell United States bonds