| Show government BANK UNSUITED TO ul S I 1 would serve politics rather than business needs says R S hecht citing previous experiences QUOTES PRESIDENT JACKSON extent and diversity of this country presents different situation from europe and makes regional banking necessary washington D C A refutation of arguments in favor of a government owned central bank banh system tor for the united states la Is presented ted in a state ment by R S flecht president of 0 the american bankers association based on exhaustive studies of european cen aral banks ile he also points out the disastrous consequences ot of previous cen aral bank experiments in the united states our present regional federal re serve system under private ownership Is infinitely better lor for this country than would be a government owned and controlled central bank mr jr hecht says it history teaches us any I 1 thing it Is thit that it Is alm almost ost certain that a central bank banh so owned would be run to meet the varying exigencies of 0 the govern government me tit in power rather than to serve the commercial needs of 0 tj the ie country central banking has been tried twice in the united states but was finally abolished because the credit control which the central banks exercised be came objectionable and unpopular he goes on to say what andrew jackson said the continued existence ot of the sec ond bank finally became a bitter issue and president jackson succeeded in abolishing it mr air hecht says permit me to quote from his bis fare are well address the immense capital and peculiar privileges bestowed upon it enabled it to exercise despotic sway over the other banks in every part of the country from its superior strength it could seriously injure it if not destroy the business ot of any of 0 them which might incur its resentment it if you had not conquered the government would have passed from the hands of the many to the hands of 0 the few and this organized money power from its secret conclave would have dictated th the e c choice h 0 0 ot f y your 0 u r highest e 0 officers fal c er s emst imst sam IT the h e E forms 0 r 0 ot f y your 0 u r government e r e u t m might ight tor for a time have remained but its living I 1 spirit would have de parted departed horn from it when the wilson administration con soldered banking reform it carefully kept away from vesting central banking powers in a single institution and instead introduced the regional idea by creating twelve reserve hanks banks located in different economic and geographical sections ot of the country mr hecht says a plan that has worked exceedingly well because the separate banks are under the guidance of 0 men chosen on account ot of their intimate acqua acquaintance latance with the problems and needs of 0 theli their respective territories he continues the great size and diversity of 0 america tends to make a central bank banh undesirable the central banks of eu rope such as the banks of 0 england france and germany cover areas not as large as some ot of our states A cen aral bank in the united states on the other hand band would be called upon to ad minister the financial policies of 0 an area larger than all of europe in which there are quite a number of cen aral banks subservient to popular demands moreover history has proven that any aay banking system entirely owned and dominated by the government ally demonstrates much greater ability in aiding expansion of credit than in putting on the brakes at the right time to prevent pi event undue inflation by restrain resti aln ing and contracting credit this Is easi to understand because in times of 0 de pies sion everyone Is urging the govern to make money and credit easi ease and to encourage expansion on the other hand it always has been ind and always will be a difficult task for or any government to call a halt I 1 in time ot of apparent prosperity because in the very nature ot of things the govern beut would be very sensitive to public criticism and would hesitate to take any action which would tend lend to cartall business activity it Is such undue andu e sus to popular demands which makes government banking inherently y our studies show that ot of all the cen aral banks at present existing there are only tour whose stock block Is owned uy by the government the newest central bank is 11 that ot of canada which opened its doors only a few months ago after a most exhaustive study had been made of 0 the experience ot of all nations with the ilie result that the stock of the bank ail r canada Is privately owned conned tito american bankers association nir mr hecht says la is convinced that a cen ual bank bach would not be in the interest if f the public or the banks this pusi lion lie added is well understood by tin president and the leaders in his ad ministration 11 for or we have been abao lately frank with them in all of at out oui discussions and have missed no op for or emphasizing that in oui on no banking system vl will in the iong i ID run bo sound it 1 it Is doIn aled entirely by the ever changing political id ministrations we should do nil lill we ap in an to keep our banking ni echanis m as fir far removed from partisan politics ap a possible os sible |
