| Show GREAT EAT STRUGGLE OVER OYER THE CENTRAL BANK IS CERTAIN President Taft Will Back Up Mon Monetary Monetary Monetary Commission in Annual V Message Washington Oct 11 llOne One eloquent fact that with coffers overflow overflowing I ing with gold America was obliged to appeal to Europe for relief in the panic of 1907 is a strong point of the argument that will be made to congress by the advocates of a revision of the monetary system of the country r V V V According to the treasury statistics produced by George GeorgeH H Reynolds Re pres president ident ille t of the American Bankers as asso asao b elation in the course of his statement to that body when the first blat blast of o evil in 1907 the United States treasury held over more nore gold than the great national banks of Eng England England England land Germany and nd France combined while circulating outside the treasury among the national and nd state banks and the people p ople was at least twice the gold treasure held by all of at those great European banks Yet this vast hoard in inthe Inthe the United States was entirely ly un unavailable unavailable available The Che credit of the national government stood unimpaired but the business Interests int rests of the country were crippled for lack of the currency which is their lifeblood and only onty a resort to the Issue of clearing house certificates prevented the panic from assuming greater creater proportions than it did Congress must meet this situation in inthe Inthe Inthe the near future for the legislation that was wa enacted a little over oera a year er ago was Wal but temporary in Its nature and ad must W either supplanted or reenacted Into per permanent permanent permanent manent law This realization of the need for action by the national legislature has hafl served to direct attention to various pro prot that have been advanced as proper solutions of ot the problem and first and V foremost among them stands the proposed national central bank The scheme stands in this relation to others fell far a doubt double reason It Is the common belief beliet that It I will form the basis of ot the curative legis legislation legislation legislation lation to be bo recommended by the mone monetary monetary monetary tary commission and President Taft In tn his ills recent recant Boston speech has signified his own favorable disposition towards the project Consequently it is timely and appropriate to disclose to the public just what Is believed to be In the minds of the President and Senator Aldrich and the lat seventeen colleagues on the mone monetary monetary tary tal commission when they refer to the V Continued on Page 2 V GREAT STRUGGLE OVER CENTRAL BANK IS CERTAIN Continued from Page 1 central bank for undoubtedly there is a great lack of information even among bankers upon this subject Mr Reynolds Is i 1 probably a competent authority and in his Chicago speech he sought to outline this Important project Here he pointed out was to be a bank of the people and for the people The people were to be the tho stockholders for anyone would be privileged to buy the bank stock Just as he be might a govern government government ment bond A small email interest on such an Investment would be guaranteed by the thO government any earnings more than suf sufficient sufficient sufficient to pay the guaranteed Interest would be shared by the government and by the stockholders Political control of the great bank would be made at least extremely difficult by the life Ute appoint appointment appointment appointment ment of the officers Integrity of oper operation operation operation would be assured by a board of supervisors appointed by the President the secretary of the treasury and the comptroller of the currency subject to the approval of ol the senate for alternate terms of at least eight years to bridge over oer political mutations Thus would be met the objections founded upon the his history history history tory of the old United States bank that the central bank might be prostituted to political poll uses and be made a powerful engine for the perpetuation in power of one party It is not intended that the central bank should support the credit of the nation that must stand or fall by Itself If the national government needs funds if It spends more money than It collects by taxation It must con continue continue continue In the old way to borrow barrow money mone from the world at large by the sale of ot bonds For the single purpose of this projected bank would be to safeguard the business Interests of the people In their private relations If there were need med for more money for business purposes the bank would supply it by notes and if there nerd a plethora in dull times these notes would wo ld be withdrawn rapidly Govern Governmental Governmental Governmental mental assistance to the institution would be limited to the deposit with the central bank Of ot all government funds now In the national banks Perhaps that feature of the project would be obnoxious to the ex ox existing i banks but it is hoped that they would find their compensation In being relieved from their present burden of ot carrying the whole weight of responsibility for increases in the circulating me medium medium medium to meet sudden demands of busi business business business ness At any rate there would be no interference with the most profitable fea feature feature feature ture of the banking business for the cen can central central cantral Institution would not receive recelo deposits from Individuals The Tho question as to how the business businessman man is to benefit by a central bank le is sought to be answered by the statement that the project included a provision for forthe forthe forthe the acceptance of good commercial paper as a basis for the issue l sue of money Such paper would represent actual transactions transactions tIns between solvent concerns all short time credits and sure to be redeemed whenever the transaction the sale and delivery was concluded Of course there would be a reasonable coin reserve to w maintain equilibrium Such In brief is a bare outline of the plan which with manifold details probably probably probably ably will be laid before congress as an accompaniment of the report of the na national national national monetary commission That It will meet with fierce and prolonged opposition cannot be doubted and this too in spite of the best efforts of the administration to have the matter regarded as non nonpolitical nonpolitical political The mere suggestion of a cen can central central cantral bank already has sufficed to agitate deeply the great banking Interests and the line Une of division began to be apparent at the last bankers convention at Chi Chicago Chicago Chicago cago Many of ot the bank officers regard regarded re ard ed the project with deep suspicion They were told that no encroachment upon their business was contemplated beyond tho th withdrawal from their vaults of the gov governments governments funds but they regarded the measure as the opening wedge for the destruction of the most lucrative portion of their business and viewed with any anything anything anything thing but favor the plan whereby the government bank was to enter into com corn competition competition petition for the enormous discount opera operations operations operations which wIlleR gave them very ery great Influence Influence ence enco In the industries of or the country Possibly their objections can In a mea measure measure measure sure be weakened by a recourse to some other means of securing s a basis for tnt the circulating notes of the centra bank than commercial paper such as an enlarged reserve of gold and silver r or even een gilt edged mortgages on real property property But these very suggestions probably would call catl forth a new army of enemies to com corn combat combat bat the tho proposition for tor not only small banks but thousands of ot wealthy individuals find a large largo part of their the r Income In returns from mortgages while the lock locking lockIng locking ing up In Jn government nt vaults of ot hundreds of millions in coin or bullion would arouse arons bitter opposition from the advocates of the perfectly elastic currency It may maybe maybe maybe will willbe willbe willbe be that the existing political parties and that be divided on this great question there will be he a new alignment In congress when It Is If broached Indeed there Is some mm reason to believe that the adminis administration administration s would prefer to wage the battle on this basis but the one assured is that in the consideration of th this s subject in the near future will plunge congress into one of the most prolonged and hard fought contests It has known since sirce the days davs of the struggle |
