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Show LOW INTEREST . RATE fOR BANKS Elastic Currency Which Will Ebb and Flow With Demands of Commerce; BanK President's Idea. CHICAGO, Dec 6. An' elastic cur-. cur-. ' rency issued by national banks at a low rate of interest which will ebb and flow as the demands of commerce require, re-quire, was advocated by J. B. For- gan, president of the First National bank, in an address before the Bank Clerks' association last night. The basis for this double issue will be the unissued balance of the national banks' bonded reserve. Mr. Forgan aid the committee investigating this matter found the 6000 banks had outstanding out-standing 62 per eent of the amount they are authorized to issue. They therefore have, a standing reserve of 87 per cent. , The committee- plans allow for the issuance of 62 per cent low rate currency and 12 per eent high tax currency. . "As matters now stand," said Mr. Forgan, "the national bank notes in all affairs of the business world are treated as other forms of money, and it is not within power of the issuing bank to recall them. What is wanted is some form of currency which will readily adapt itself to the needs of commerce Money accumulates in the banks during the summer and is forced ' - out by low rates of interest and other artificial methods so that it may be earning something. When it is needed it is sot always accessible and stringency strin-gency results.'' |