Show N IS PROPOSED PREVENT PANICS ii In- In nal mal Citizens Citizens' League Movement for Currency Reform LIN UN OUTLINES PLANS Cash of Banks to Be Hold in anal lonal nai Association and Loaned J at Need k International t News New Service York Oct 7 John John pre pres- f t the Now New York state branch of onal Lional Citizens Citizens' league announced that the league Is In favor of a ail il reserve association which shall ull 1 control of ot the tho financial situ situ- n the United States by amassing stronghold the re reserve ene cash now y V every bank In the country object of or the league is to arouse ent eat for Cor a reform of oC the currency inking laws to stop senseless of the Na- Na The headquarters CItizens CItizens' league are In Chicago Ing are arc the officers and tV L Far Farwell Farvell wall of ot Jo John n V. V Far Farwell well John Barton Payne of ot uth ith th Park commission vice Laurence LaughlIn of ot the Uni- Uni lot of Chicago chairman of ot the tho ex- ex hl h committee A. A C. C Bartlett of ot otiL rd iL 4 Spencer Bartlett Co treas- treas urray S S. S Wildman of ot Northwest- Northwest y secretary of the organic organ organ- ic It tor B. tora tr-B. tr B. B E. E Sunny of ot the Chicago me ne company C Cyrus rus H. H the C-the the International Harvester y 1 Harry A A. Wheeler of ot the Chi Chi- of ot Commerce John Gif G G. ot of if Marshall Field Co Co F. F Af A A. Jot f the Railroad com com- W. W Upham of or the City Fuel Fuci iy y Marvin of the Chica- Chica Railway company Rosenwald of or Sears Roebuck A. A Sprague of or Sprague Warner M. M Carr of ot Joseph T. T R flyer flyer- er Sons A. A F F. of ot Reid ch Son Ii i Son Graham Grahan Ta Taylor for of ot Chi Chi- C. C H. H Wacker of ot United les es and Joseph Bach of ot SIegel j r Co ch leagues with similar sets 01 ol s Is are being established in But But- Utica and Albany Other league eague organizations are under Connecticut Now New Jersey Dela- Dela Maryland aryland and other states In Banking System m. m of ot 1907 was war as s disastrous saId Mr Claflin IId II It ed d weaknesses In our banking i which all admit can be and be effectively corrected The TheIs I Is still suffering from the tho eff ef ef- tx f this panic and the small busl- busl are suffering more than the thc leSe es re is no rio legislation of any kind lelnd I railroad corporation or of a a. gen- gen character that at all equals ortance the putting of our bankd bank- bank Mi Ld d currency system on a soun sound s s- s movement Is partisan non and ande andIa I 1 Ia e kept so The problem Is too nd pressing to bo be mado made the foot- foot party politics It must not be becI bed d' d dand and diverted as the tho tariff mat- mat been National Citizens Citizens' league added Is la altogether independent y way We recognize the able rough ough work done dono by bJ the mono mono- but tho the league has 1108 no dried 1 plan to otter offer I ere are are arc certain basic principles of or upon which we are agreed Fur- Fur han this we want suggestions all l sections and all classes to the ho homb mb ab tho the remedial legislation that Is by Congress shall rehe rehe re- re he needs of ot tho the country at large lido not advocate a central contral bank ai banking business but love ove in what has been called a a. na- na 4 reseT e association controlled so as to represent the C ratio spirit and the sound com com- l nse of ot this nation t fion on en the weaknesses of or our present rare are understood and amI tho finance are nrc made clear to I aid id d wo o hope to make them so I Confidence that thIt tho the legislators legislator will eltho right kind of laws and that leople will want these laws en- en r VJ PInn Inn io o n Reserve II ne Cash rought through h the tho National Cit Cit- plan to take full fun control to r financial situation of the full tull fry 7 b by amassing in ono one stron strong strong- ie e reserve o cash now held by el e every tn tn the country Notes issued by banks s would bo be a thing of the Banks would no longer hol hold their reserve e cash Instead they would tit Ut this r reserve with tho the national tt which would retire th the notes an and I Issue sue national motes to each bank covering the it t. t O of reserve deposited b by that I a. a ough lough it is not made mado clear tho the landing landing- Is that thit the temporary irs re would retire in favor of new o. o oba be elected b by the banks them- them There would bo be two classes of ot rs one rs one elected b by banks who ibe be in the minority and tho the otheron other on th the plan that each bank loo be represented by a a. unit regard- regard size Presumably these would directors tors of ot the national 7 It is provided that In elections ck cit of ot any bank owned b by a hold- hold pany or a corporation could not ed e e er and national banks would bated be ba beed beted ted ed to subscribe for tor stock In the i. i I 1 e. e a I at bUU u iu v U me LAIC client cn I. I Ul ui U I. I I i. i per cent of Its own cap cap- ock This ThiEl would mako malco a A. possible pl ot of would be so arranged that s 's s of oC the national league could not nol more than six per cent all aIt extra flito go o Into surplus or to be bo paid T States government nothing is said Bald of ot the c cx- o which the fe federal eral go government go or would control this massive masso maI malt ma ma- I lt t. t there would be close relations I Bio he 10 government Is IR shown b by n a pro- pro that i. the United States shall not nott It t Its funds with any bank banle but bul nako ako all deposits with this I k No private accounts account could bo ho boIt boie hole le ie It would in reality be a C great groat I 1 with the federal government a alln as 9 asI I tn in depositor the banks as an stock- stock I j s and anel the banks banki a as j Its Iti customers I back of ot It prefer to character characterise o oIn In a machine controlled b by tho the I i rather rathor than a bank because I re ire avowedly against the Idoa of ot otal I ral al bank such as the flank Bank of at rd d. d They The are al also 10 o against tho thoi i banking scheme which tho they mid ul prove provo ineffective business would consist In lending I ito to tho the banks ot nf tile the country on onI I term form commercial paper per It would woul to do 10 a foreign n exchange e AfI 55 One of or Its itA main miln features s be the power to place a n. weekly any hank bank which allowed Its Ita ratio ervo to drop below a n given point wor tho the reserve became In Its to o 0 liabilities the higher this tn taT tar r become the Idea being to compel automatically to keep a A. prop proper r bv by making mt it very costly to vio- vio 10 s t I rule |