Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1901-10-21
AS TO \ GOVERNMENT BANK.


As TO 4 GOVERNMENT BANK.
At the recent bankers convention in
Milwaukee, Mr.. A. B Stickney. whose
paper was the most elaborate read be-
fore the convention. gave Capitalization
and paternalism helping hand by bold
~ advocating the establishment of a
banking system in tbs country having
"a central bank with a head in the chief
commercial city, with branches in each
Of the commercial centers which shall
constitute the head and backbone of
the system. This central bank SHOULD
be the bank of banks and the bank of
the government =
He declared that "the sub-treasuries
should be abolished. The central bank
should hold the gold reserve of all the
other banks and of the nation. Sub
systems should be formed, consisting of
heads in important commercial centers.
with branches scattered over the coun-
try, thus carrying the facilities of great
strong. solvent banks to every hamlet
ana cTOosFOdQ IN the country.
Mr.. Stickney expressed the belief that
the only legislation needed to bring all
the banks of the country into this grand
system of parent banks and branches,
all practically under one head institu-
ton holding all the reserves, was the
repeal of the sub-treasury laws and of
hn Nf
bank law which in any measure re-
strict the business of swapping credits
and which prevents banks from con-
Quoting the banking function in more
than one locality"
Mr. Stickney thinks his scheme would
be chiefly beneficial in preventing pan
les. History abundantly proves" he
asserts, that such panics as occurred III
this country in 1891, 1851, 1873 and 1898
are preyentsble by known system of
banking" He finds the highest develop
inent OF this system in England with tie
Bank of England as the head. He
says that when tinancia. trouble comes
in that country there is no serambling
among the banks for money to strength
Ell their reserves because their reserves
are all in the central bank. and they do
not suspend the exercise Of they bank
ing function-the function OF suppors-
ing commercial credit With us. on the
other hand, whenever there are signs
of financial storm all The banks begin
TO scramble for money to strengthen
their reserves, and so doing they re-
strict their loans enormously contract
ing the medium of exchange ana pre-
cipitating panic
Il may be remarked, pertinently
however. that England is not exempt
from pants. The Barring Brothers fail
IRE some ten years ago came nearly
swapping the Bank Of England, which
had to call for a specie loan from the
Bank Of France to avert general
crash.
Mr.. Stickney. who is a railroad man
as well as banker, speaking Of the re-
eurrence of financial depression. gives
a warning which will appeal with force
to conservative minds: These are pros
porous days" he says. But ! warn
YOU not to believe that the country has
grown so rich that there will never be
another period of distrust. Some of the
enormous quantity Of bubble wealth
which is now being created will sooner
or later collapse"
This is true enough, and no govern
mem banking system such as Mr. Stick
ney advocates VIII avert it. She most
such Capitalization of the financial sys.
tenn could do would be to render the
anal crash the greater and more far
reaching by staving it off for while or
the credit system 1t would be a great
er power for evi. than for good