The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-06-19

Iteu OF the national QIdnCldl SYSTEM d.
cording to MIR. Dawes's views, he expressed
follows:
IN TINE OF PANIC.
1--WE have the most elastic system of cir
culation in the world but we feel the need
OF elasticity most OF all in times Of panic,
and II we could devise in some way some
system of asset currency-if you please,
emergency currency it is called-which
would at that time, like the clearing house
certificates in New York, be used as a tenn
porary instrument for relieving the distress
which prevails at those times we have gone
as far as it is possible for US to go, in my
Judgment. at this time in currency reform,
and at the same time we have taken away
the greatest ground for the argument for
asset notes.
Mr. Dawes declared that panics come
about through the credit circulation Of the
and men taking advantage of that fact TO
call in their loans. he said that panics
as rule are at their very worst for but
brief period, citing the strtngency OF 1888
which was keenest in May, disappearing
entirely by October, when there the
greatest accumulation OF idle, loanable
money in the banks Of the United States
ever known in the history Of this country.
Therefore. argued Mr.. Dawes. there is need
only for a currency that may be called into
IN times of emergency and upon which
there shall be such tax that IL will retire
when need for its presence no longer eX-
lists. The speaker saw little in arguments
drawn from Canadian banking, which, he
said, is greatly inferior TO the system OF
this country. The banking resources of one
State of the United States. declared Mr..
Dawes, outweigh the banking resources of
the entire Dominion Of Canada, therefore
we cannot with safety use Canadian bank
ing as a guide for reforms in banking in
this country.
Mr.. Dawes took strong ground against
the system of branch-banking proposed by
the Fowler bill. He said that the centraliZa-
ton OF national banking in the large cities
with branches In the smaller places would
practically destroy the greatest advantages
of the old system under which the farmers.
manufacturers and business men in the
cities of minor Importance able to OBJ
tain loans needed in building up their en-
terprises. At present the banker and the
borrower are personally known TO each
other, said the speaker, and the borrowers
reputation in his community enters into
the question of his securing a loan. Mr..
Dawes asserted that the present prohibition
against branch banking is protecting both
the small banks and their customers and
thereby building up the commercial welfare
OF the Nation. We have not built UP in this
country" he declared, upon the idea which
prevails in the monarchies of Europe We
have not built this banking system of ours
as they have, from some great central
banking institution branching out with
hundreds of branches. We have not built
our system from the top down. but we have
built II up have built up other
industries, right from the bottom up, and
In this great system of ours of 1900 differ
ent banking unities we have that which is
developing to the utmost the great re-
sources OF our country and we cannot af-
ford at this time as "a measure of national
economy and of national policy 70 cut off
the opportunity Of the small man who seeks
his small loan TO develop his small re-
sources. out Of which he can in time build
I'D these great industries which are COM
mencing to take the trade and commerce of
the world. l get out of patience sometimes
hQY hn0 NAV hot 1rAlr nit
shame upon our system as compared with
the systems of continental Europe and
the ease with which they move. Why, the
banking power of the United States, which
in 1880 was only n little bit more than
that of the United kingdom and was a lit
tie less than that of continental Europe.
has In these ten years grown until ii is
within 121z per cent of the combined bank
ing power Of Great Britain and of con-
tinental Europe. And this is the system
which we are asked to alter and TO model
upon those centralized banking institutions.
We have always believed in this country,
in protecting the right of the small man
ana ailc Inat Is the reason we have so many
big men, the reason we have so many big
banks, II is the reason we have so many
big industrial concerns which to-day have
invaded every line of business in Europe
THE AMERICAN IDEA.
In concluding his address Mr.. Dawes
said:
''Our banking system has been built upon
the American idea, and to remove the pro-
hibition upon branch banking at this time,
TO put. If you please, the banks of Chicago
and of New York in competition with your
banks here and in competition with the
banks throughout this State and through
out this country, would be to revolutionize
the methods of doing business in certain
lines throughout this country, and Ii would
endanger to large degree the success with
which our people are developing the re-
sources OF this country. We are not de-
veloped yet. We need to protect the small
institution yet. for there are small institu-
lions being built up all over the country,
and when we reach a time when we have
developed our country as some of the Eu-
ropean countries have been developed-not
for the few at the expense of the many,
but for the many-it may then be that we
can seek these economies which will be in
cident to branch banking, in the way of re-
ducing clerical forces and the like, without
endangering our national prosperity and
our national progress. These are questions
that we ought to look at from the stand
point of a national policy. We ought to
look at these questions from the stand
point of what is best for the people as a
whole. Those of us who oppose this bank
ing reform law are not obstructionists.
| We ought all to stand together and work
for the best that is possible, and after we
have provided for asset notes in time OF
panic to help us, then let us talk about
them as measure in normal times as a
means of transactng business But don't
let us jeopardize our forward progress by
saying that we must have such a measure
as the Fowler currency bill at this time. /
! thank you
Mr.. Dawes was given the closest atten-
! tion throughout his address, and at its
1 conclusion he sat down amid an outburst
| OF admiring applause. The POSTMASTER
| extended invitation to any one who
/ cared. to talk, and there were calls for Mr..
/ Dawes's friend. Mr.. Brown, but the latter
/ begged off with the excuse that he had
never made a speech in public in his life.
| The dinner quickly resolved itself into
an informal chat, which was continued TO
a late hour in the reception room of the
! clue.
| The bankers banquet was attended by the
/ following: Charles G.. Dawes and w. f.
Brown, Chicago; Governor Durbin, V. 7.
| Malott. Preston T. Kelsey, Edward L. Nc
| Kee. Charles r. Holloway II. NJ FOltz,
| Henry Eitel. William F. Churchman, c. 5.
| Mcbride Charles ". Thompson. Albert +.
| Metzger. Medford B. Wilson, John ii. Hol-
| nday, Stoughton A. Fletcher. w. F. c.
| Colt. Charles f. Coffin. John A Butler.
r. L. O'Hair, John S. Harrington. Ovid
| B. Jameson Edward 3. Porter. Charles l.
! Farrell, Charles Latham, Thomas G. Day,
/ Andrew Smith Raymond p. Van Camp,
/ Lazarus Noble, Ralph Smith, Orlando NJ
| Packard George c. Calvert, II. A. Scholtz-
| hauer and r. ID. Moore.
william +. Brown, of Chicago.
William T. Brown, of Chicago, who came
| to Indianapolis yesterday to attend the
/ banquet of local bankers at the Univer-