History of the United States Volume Vi Part 17

Some contended for an issue of paper money and after a long discussion by the officials of the Treasury, it was decided to sell $50,000,000 worth of Panama two per cent bonds and $100,000,000 worth of three per cent notes in the hope of calling from its hiding-place the money which was being h.o.a.rded. The result of the venture was not satisfactory and the loan operations soon ceased.

Gradually financial affairs righted themselves. The emergency currency was redeemed, the runs on banks ceased, confidence slowly returned, and business picked up, although by the middle of 1908 the volume was scarcely half of what it had been a year before. The number of bank failures had been comparatively small. Only twenty-one banks were obliged to suspend payment, while in 1893 the number was 160.

[Ill.u.s.tration: Hundreds of people in the street.]

The panic of 1907. Wall Street, in front of the Sub-Treasury Building, when the run on the Trust Company of America was at its height.

Naturally there was much discussion concerning the defects of our financial system, of the needs of elastic currency, of a central bank, etc., when the Sixtieth Congress met in December, 1907. Several bills were offered for the establishment of a central bank; some for the issue of a special currency by the government; others for the legalization of certificates and currency created by clearing-house a.s.sociations. The aversion of the people to the centralization of the banking business in the hands of a few of the great money powers made the establishment of a central bank out of the question.

The bills which were discussed at any length were the Fowler Bill, the Vreeland Bill, and the Aldrich Bill. The first was discarded, although it had merits, and the two branches of Congress were unable to agree upon either of the others. The result was a compromise measure which became the Aldrich-Vreeland Act.

The important provisions of this act are as follows: (1) Ten or more national banking a.s.sociations, each with an unimpaired capital and surplus of not less than twenty per cent and an aggregate capital and surplus of not less than $5,000,000, may form national currency a.s.sociations. These a.s.sociations are to have power to render available, for the basis of additional circulation, "any securities, including commercial paper, held by a national banking a.s.sociation."

(2) To obtain this additional circulation, any bank belonging to a national currency a.s.sociation having circulating notes outstanding secured by United States bonds to an amount not less than forty per cent of its capital stock, and having the required unimpaired capital and surplus, may deposit approved securities with the currency a.s.sociation and be empowered by the Secretary of the Treasury to issue additional circulating notes to an amount not to exceed seventy-five per cent of the cash value of the securities. If the securities are State or munic.i.p.al bonds the issue must not exceed ninety per cent of the market value of the bonds.

(3) The banks and a.s.sets of all banks belonging to the currency a.s.sociation are liable to the United States for the redemption of this additional currency, and the a.s.sociation may at any time require that additional securities be deposited. All banks are held liable to make good the securities of any bank in the a.s.sociation.

[Ill.u.s.tration: Hundreds of people in the street.]

The panic of 1907, Run on the State Bank, Grand Street, New York.

(4) The total amount of circulating notes outstanding for any bank shall not at any time exceed the amount of its unimpaired capital and surplus, neither shall the amount of such notes in the United States exceed $500,000,000 at any time. The amount issued in each State shall bear the same relation to the total amount issued in the United States as the unimpaired capital and surplus of the banks of that State bear to the unimpaired capital and surplus of the banks of the United States.

(5) The tax on circulating notes secured by United States bonds bearing two per cent or less shall be one-half of one per cent; if secured by United States bonds bearing more than two per cent, the tax shall be one per cent. If the securities are other than United States bonds, the tax shall be at a rate of five per cent per annum for the first month and afterward an additional tax of one per cent per annum for each month until a tax of ten per cent per annum is reached.

(6) The redemption of the notes may take place by the banks depositing with the Treasurer of the United States lawful money to replace the securities deposited.

(7) The formation of a national monetary commission to inquire into and report to Congress necessary or desirable changes in the banking and currency laws was provided for.

CHAPTER XI

IMMIGRATION AND EMIGRATION

[1907]

Since the organization of our government nearly 29,000,000 foreigners have come to the United States. The flow of immigration first a.s.sumed large proportions during the decade 1831-1840 and since that time one wave after another has reached our sh.o.r.es. The last one, and the one which has caused the greatest alarm, gathered force about 1897 and reached its full tide in the first decade of the twentieth century, when over 8,000,000 aliens landed at our ports.

During this period (1820-1910) the character of immigration has changed.

Prior to 1880 the greater part of it came from northern Europe, but since that time the number has constantly fallen off, and the flow from southern Europe has greatly increased. During the decade 1871-1880 Austria-Hungary, Italy, and Russia sent only 181,000 of 2,262,000 aliens who landed in the United States--about eight per cent. During the decade 1901-1910, 8,130,000 immigrants came to our sh.o.r.es, and of these 5,800,000, or over 70 per cent, were from these three countries. In 1901 Austria-Hungary sent, 113,400; in 1907 about 338,500, but owing to the pa.s.sage of the immigration law in 1907 the number fell abruptly, but by 1910 had again increased to 260,000. The same is true of Italy. In 1901 about 136,000 came; in 1907 nearly 286,000, and in 1910 about 215,500.

Russia sent 85,000 in 1901, some 260,000 in 1907, and 187,000 in 1910.

The numbers from northern Europe do not approach these. The immigration from the British Isles does not reach the 100,000 mark; from Germany only 30,000 come yearly.

Causes for this influx are varied. Many come desirous of owning homes, a pleasure out of reach in their home country on account of high prices.

Free inst.i.tutions attract others. A land which offers free schools to all regardless of race or creed, religious freedom, and the opportunity to play some part in the political life of the state is naturally attractive. Some come to escape military service, others with the idea of making money and returning to their native land. Density of population and the accompanying excessive compet.i.tion in the struggle for existence also play a part.

Hundreds of letters telling of the general prosperity in America and contrasting this with the condition at home, do their work with the disheartened peasants. It is said that half of our immigrants come on tickets paid for by friends in America. The large employers of labor, and even the States themselves, are constantly calling for laborers.

Ours is a huge, half-developed country, and the development of our resources, particularly the coal and iron industries, the cotton; rice, cane, and tobacco industries, and the railways demands thousands of helpers.

[Ill.u.s.tration: Several hundred people on a s.h.i.+p.]

Emigrants bound for America.

The steams.h.i.+p companies which have found an extremely profitable business in the transportation of immigrants have used various means to increase the numbers. Agents are said to be in all European countries soliciting trade. a.s.sociations for the a.s.sistance of poor emigrants have been formed in various European cities--this is especially true among the Jews who, by means of societies such as the "Hebrew Shelter" of London, have aided thousands of Roumanian and Russian Jews on their way to America.

[Ill.u.s.tration]

Entrance to Emigrant Station or "model town" in Hamburg.

Built for emigrants waiting to sail.

Although most of the European countries have placed restrictions upon emigration, these restrictions unfortunately do not r.e.t.a.r.d the emigration of the undesirable cla.s.ses. As a result America was called upon early to legislate on this problem. The first act was in 1819 and was aimed to regulate the transportation of immigrants. The laws of 1875, 1882, 1891, 1893, and 1903 dealt with the cla.s.s of immigrants to be admitted. The acts did not accomplish the end for which they were framed, and the question was taken up again by Congress which, after a lengthy discussion, pa.s.sed the act of 1907. No great change in policy was effected by this law which, for the most part, only revised the wording of the old laws and modified the methods of regulation. The head tax of two dollars, hitherto levied on each alien, was doubled but was made inapplicable to immigrants from our insular possessions or to aliens who had resided for a year either in the British possessions in North America, or in Cuba or Mexico. All aliens suffering from tuberculosis or loathsome diseases or those who were "mentally or physically defective, such mental or physical defect being of a nature which may affect the ability ... to earn a living," were excluded.

Children under sixteen unaccompanied by a parent were excluded.

Steams.h.i.+p companies were placed under additional restrictions to insure against their violation of the act. Should an immigrant within a period of three years be found to have entered the country contrary to the terms of the act, he was to be deported and the transportation company responsible for his coming would be held liable for the expense of his deportation.

The effect of the new law can be seen in the immigration statistics--the number of immigrants for the year 1908 is but little more than half as great as the number for 1907. The chief decrease was in the stream from southern Europe. This decrease cannot be attributed entirely to the act of 1907, but must be accounted for in part by the panic of 1907.

Observations extending over a long period of years have disclosed the fact that the ebb and flow of the tide of immigration is closely attached to the periods of economic prosperity and depression.

When the races of northern Europe contributed the greater part of our immigrants there was a general feeling that this was a decided advantage to us. The people were readily a.s.similated into our population and were in general intelligent, industrious citizens who soon acquired a patriotic love for America and its inst.i.tutions. The serious problems came with the increased number of southern Europeans.

[Ill.u.s.tration]

One of several churches built for emigrants of various faiths in the station or "model town" of the Hamburg-American Company, for use while waiting to sail.

For years Italians emigrated to South America, particularly to Brazil and the Argentine Republic, where the climate, race customs, and language were more to their liking than in the north. A diminution of prosperity there has turned part of the tide northward. About eighty per cent of our Italians come from southern Italy, a fact explained by the difference between the industrial conditions in the northern and southern parts of the peninsula. In the south agriculture is the only industry, and it frequently suffers from climatic conditions, the resulting losses bearing heavily upon the population. Conditions are aggravated by an unequal division of taxes between the north and the south. Often the only alternative to starvation is emigration. During the past decade 2,000,000 Italians have come to us and, according to estimates, about two-thirds of them have settled in the cities of the Northern States, a condition detrimental to the foreign and our social organization alike. These Italians, peasants and experts in fruit culture by training, become day laborers, thus losing their greatest productive power. The Italian who keeps away from the city finds his lot more agreeable. Wherever they have settled as farmers they have been uniformly successful. The person who knows only the Italian of the tenements has little sympathy for him, in spite of the fact that many of this race have proved themselves to be quiet, sober, and useful citizens.

[Ill.u.s.tration]

Exterior view of main building.

[Ill.u.s.tration]

Restaurant. Immigrants dining-room and detention quarters.

Detained immigrants are fed here at the expense of the steams.h.i.+p companies.

[Ill.u.s.tration]

Here all immigrants must present themselves upon arrival for their first inspection under the law--sometimes as many as 5,000 a day.

U. S. IMMIGRANT STATION, ELLIS ISLAND, N. Y.

The Slavic immigration since 1880 has been mainly from the more primitive districts out of touch with the civilization of western Europe. These people have come, not as settlers, but as laborers in the mines, factories, and foundries, planning to remain here for a time, earn as much as possible, and return to their native land.