The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-12-15
STICKNEY'S SCHEME
ANOTHER ARGUMENT IN FAVOR OF a
GREAT CENTRAL BANK.
Railway President Who Would AbOI-
ish the United States Treasury
soon Possible.
EXPLANATION OF HIS PLAN
HE WOULD REPEAL ALL RESTRIC-
TIONS OF THE BANKING LAWS,
Permitting Freedom of Operations in
Hope that System Like the
ScOtch-EngIish Would Result.

CHICAGO. Dec. 1.-THE bankers of Chi
cago were given a banquet by the Mar
quette Club tonight. In addition to
speeches by ex-COntroller James II.
Eckles, president of the Commercial Ma
tiOnal Bank, and President James B. For
gan, Of the First National Bank. there
one by \. 3. Stickney, president of
the Chicago Great Western Railway Com
pany. who was the principal guest of the
evening.
Mr.. Stckney's subject was the Central
Reserve Bank" He cOntended that a cen
trail reserve bank would not and could not
become monopoly, extending its branches
TO every village and driving all other banks
out Of existence The necessity of keeping
- per cent. of reserve would render it in
capable OF competing except in the larger
transactions. with the other banks, which
would carry no more than TO per cent
of the reserve. The reserve, he said, is
the regulator of the banking business. AS
matter of fact. he went on to say, the
Bank Of England has only eleven branches
while the other banks in England. Scot
land and Wales have 4,521 branches. The
banking Business outside of London is en-
tirely in the possession of the other banks
Some of the other banks. both in and out
of London. in point of deposits, rival the
Bank of England. and in the matter of
1T is my conviction he said. that
there is no safety. and can be no safety. TO
financial affairs in the United States until
the treasury IS abolished, but, at the same
time, must not close our eyes to the
fact that il has become an integral part
OF the banking system and cannot be safely
destroyed until a central reserve bank has
been developed. Otherwise, the duty of
protecting the gold reserve from expOrta-
ton would fall upon 4O64 national and 564S
state banks and institutions The impos-
sibility Of more than 5000 separate banks
protecting the gold reserve against ex-
pOrtatiOn would, of itself, necessitate a
central reserve bank, TO which would be
delegated the sole responsibility Of protect
Ing the reserve.
Of the American banking laws were re-
pealed and banking made free there would
be developed In the United States bank
ing system substantially on the lines or the
Scotch English system. In process OF time
one of the systems of branch banks would
demonstrate its fitness. and solely by reas-
or Of its superior fitness-nOt by force Of
legislatiOn-it would be selected by the
other banks, as the central reserve bank
\ bank thus evolved, ii may be assumed
would be fit both in respect TO financial
responsibility and in respect to the charac-
ter and capacity OF its directors and man
ayers, for the government 10 enter into the
ordinary relationship % customer and
bank. Such is the central bank which
advOcate-a bank produced by evolution
instead of a bank controlled by partisan,
Nl-considered and compromise legislation.
Under free banking laws many, and per
hans a majority OF the present banks,
would continue 10 conduct local. indie
pendent banks for an indefinite period. Be-
ing free they could continue their indie
pendent banks as long as they saw nit More
than IA per cent. OF the banks OF England
have no branches.
"Candor Compels me 10 admit that there
IS and has been ever since the destruction
OF the old United States Bank. which was
an entirely different type from the mod
ern central reserve bank. strong prejudice
IN the American mind against a central
bank But il is my contention that TINS
prejudice grows out OF miScOnceptlOn OF
the modern central reserve bank ana It's
functions and powers. and have more con-
hdence in the intelligence OF the people
which leads me 10 believe that they are ca
pahie of rising above these preJudiceS Wheh
they understand the facts The economic
propositions in regard 10 the use OF sill
yer as the standard Of value involved IN
the political campaign OF 1896 was more
difficult OF cOmpre hensiOn and ran counter
10 the strong prejudices of probably a ma
5ority of voters. bat after the fallacles
were explained the cause OF sound money
was easily triumphant. II Is my conNlc-
ton that another campaign or educauon
would make the proposition OF free banking
poSSfbIe of realization.