New-York tribune., 1901-12-15
CENTRAL REsERTE BANK Plan
A. B. sTICkNEY ADVOCATES 1T BEFORE CHI
CAGO BANKERS.

r-,,caeo Dcc 1.-THE bankers Of Chicago had 9
banquet by the Marquette Club tonight In adoi'oH
TO speeches by former Controller OF the CURRENCY
James H Eckels. president of the Commercial Ma
+,o,ei R.nl and lanes B. Forgan president OF the
First National Bank, there was one by A b SUCK
ney president of the Chicago Great western s>dii
way Company who was the principal guest Oh 'it
evening. Mr. stickneys subject was The Central
Reserve Bank.
Vie contended tina. a central reserve bank would
NOT and could not become monopoly, extendlhs
tts branches every village, and drV1ns aii olie
ba,ke ont Of existence. The necessity of keeping
4 ner cent OF reserve would render It fncapahle
of competing except In the larger trahsdcochS'
with the other banks. which would carry no more
than : to s per of reserve. The reserve ne
said is the regulator of the banking business As
a matter of fact. he went or 10 say me ranA y.
England has only eleven branches. "nle 'ne
other hanks m England, Scotland and wales nave
4qn branches. The banking business OUTSIDE u "
London is entirely in the possession OF the o'ie
hanks Some of the other banks, polh III aiiA
on, of London in point Of deposits rival the Hal
of England and in the ma'ter ol io"4'
He added:
It is my conviction that there is no safety, ana
can be safety financial afTairs IN f 1e ~ fbe
anne time we must close our eyes 70 tns "a
that it has become an integTs pat aestroTed 9I S until
Central reserve bank has been developed. O&tnel- &
wise ts G1y yo9d 81 fs uPos 4 s
State banks and institutions Inc tfa sgoid
mi &
reserve against exportaton would Of iLsef re S
oIlire a central reserve bank. 10 Wrcn "oulu
delegated the sole responsibility OF prolecufs ih0
reserve. ., ...-,,,.o,s NJ the
american banking Ia We were repealed anq p9Iil {
made free there would he developed in the CIite.
States a banking system substantially on the HIIes
Of the Scotch English system In process o. IN,
sfratA its fitness. and solely by reason OF iis
suneror ftness-not by force of legslatlon-lt "ouo
he selected by the other banks as the centTai re-
serve bank A bank thus evolved It may De as
surned would be fit both in respect to nnenciaii
responsibty and in respect TO the character eilu
CAPACITY OF it's directors and managers lot tne
government enter into the ordinary reiaCo
of customer and bank Such Is the central nanE
which / advocated g. bank produced ny, eNoluuon
and controlled by the natural laws OF trade hstea1
of a bank controlled by partisan ill-consioered ano
nanT and perhaps majority, Of the present ba nks
would continue conduct local inde pendent paiis
for an indefinite period. Being free they could con
tinue their independent banks as long as tkey saw
lit More than II per cent Of the banks or England
have branches
Candor compels me admit that there is, and
has since the destruction or fne oio
United States Bank, which was an entirely differ-
strong prejudice in the American mind against a
central bank. But 1t is my contention that this
prejudice grows out OF a misconception OF the moo
ern central reserve bank and its functions and
gence Of the people which leads me to believe that
they are capable of rising above these prejudices
when they understand the facts The economic
nronnsftions in regard the of silver as the
standard of value involved in the political cam
pasn of 1896 much more dlfflcult OF corfpre-
hersion and counter to the strong pre1uolces
of proba majority of the voters. but after the
faifacfes explained, the cause OF sound money
was easily triumphant 1t IS my conviction that
another campaign of education would make the
proposition of free banking possible of realization