Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-12-02
WHAT THEY ARE
TALKING ABOUT.

+ !.
The proposed Federal bank and the
necessary changes in our banking sys-
tenn brought out much interesting talk
in the late bankers convention. This
has been followed by press comment,
and the Minneapolis Times takes up the
subject in this way:
For one just putting his armor on, the
rev comptroller of the treasury speaks
not bOastfully, perhaps-but too hast
iiy The deliberatenesS that betokens
thought is peculiarly becoming in finan-
ciers. and whatever Mr.. Ridgeley's final
opinion may be the impression would
have been better IL he had waited few
days, or even few months, before
making his positive declaration in favor
CT a United States bank. The comptroi-
Ter is an administrative, not legisla-
tive, officer. and his opinions have influ-
ence upon the policy of this government
only in SO far as they are those of stu-
dent of finance
The chief prepayment of great central
federal bank is Maurice L. Muhleman,
for many years an officer of the treasury
department and a financial writer and
statistician of some note. He believes
there should be a bank of the United
States because the present bank-note
circulation is inadequate to the needs
Of the country: because elasticity of
volume is lacking in the present system:
because the cost of furnishing banking
and credit facilities under present meth
DDS is too great and needless expense is
loaded upon trade and industry.
With the present national banking
system as basis, he would have the
government charter a large federal
bank. retaining a sufficient interest to
control 1t. incorporated banks state
and national, should be permitted to
take stock and to be entitled to special
privileges in the matter of circulation
Paper currency should be issued only
thru this central bank and our govern
ment notes, gold and silver certificates
included, be retired. Currency should
be issued on other good securities in adj
dition to bonds and safety guaranteed
by an adequate reserve. Provision
should be made for an emergency cir
culation to be issued by the central
commercial paper This extra circula-
llOil ollOui0 NC bupJGClCu " q et1A SulAl.
cient to retire 1t when the necessity for
it's existence has passed.
The plan is attractive at first glance,
for 1t will be admitted that our currency
circulation liz not as elastic as it should
be. It will be granted at the same time
that complaint on this score comes with
vastly greater frequency from specula-
tive Wall street than from the indus
trial and commercial interests. The
gradual adoption OF the Canadian plan
in modified form would be helpful. but
able financiers have inquired why 1t |
would be necessary to establish United
States bank to accomplish this purpose.
and the question Is entirely pertinent |
We have the treasury department and |
the national banks. 1t would seem that |
provision for an emergency circulation |
could be made without the addition Of a |
mighty and powerful semi-independentI
financial machine to our scheme OF gov
eminent. There is force in the old pro-
test against banks in the government
business or government in the banking
business" AS banking proposition
the Muhleman plan differs materially
from the earlier United States banks, |
but it seems to present the same possi-
bilities Of political danger. That our
financial system is susceptible OF great
improvement none will deny. but there |
trine that a central federal bank should |
be established as a means to the desired |
end.
Churches, courts and legislatures"
said President Eliot Of Harvard Univer-
sity last Saturday. command less re-
spect and have less influence now than
thirty years ago" The church. thinks
President Eliot, has turned either to !
poetic generalities or to rituaiistic
pomp. The judiciary has declined in
personal merit and in public estimation
bodies have fallen into fpop-
ular contempt. Meanwhile, the school
has become more powerful, and educa-
ton is the one agency for promoting In
telliSence and righteousness which has
gained strength IN the last half CEN
tury.'
In their telegraphic form these state
ments are 30 broad and sweeping that
one hesitates to accept them without |
qualification. But is may be admitted
that the tendency is In the direction
which President Eliot indicates. The
school is gaining, while churches courts |
and legislatures are losing. Into the
cause of this tendency President Eliot IS
not reported to have gone. 1t might be
suggested, however, that the school is in
itself partially responsible for the
change There is a certain stage in edu-
cation when respect for authority Is at
low ebb The mind, becoming conscious
of its own powers, thinks nothing be-
yond its jurisdiction. Many things
which formerly inspired awe on Being
seen face to face lose their terrifying
powers.
With general rise in education has
come an intellectual leveling. AS
preacher of this city once put 1t:
Everybody thinks that he is Compel
ent to decide anything" The rever-
ence which men once had for the dis
tinguished divine, the learned jurist, |
and the honorable legislator has been
in part dispelled. These individuals
are seen now to be mere men, and in
the days of the wide diffusion of knowl-
edge their requirements seem not SO
wonderful after all. Everybody reads I
a little, speculates q little, talks per- |
haps little more. The result Is the |
present bewildering chaos of opinion in I
all matters of religion, ethics, eco
and sociology. 1t is individual |
ism rampant And individuallsm ram
pant does not bow its head before
church, court or legislature. Every