The Savannah morning news., 1902-12-19
BANKERS BANQUET
AT WALDORF-ASTORIA

made additionally secure by a guaran-
tee fund raised by a tax or premium on
circulation.
i think the best plan which has been
suggested for modifying our bank cur
rency is to allow the banks to issue
more than the par value of the bonds
deposited The first consideration
should be to make these notes absolute
ly secure to the holder. No change in
our bank notes is justified, however adj
vantageous it may be in other respects
which in any way impairs their safety
The government can safely guaran-
tee or insure these notes if protected by
the bonds held for part of their value,
and, in addition, by a guarantee fund
TO be raised by tax or premium for
insurance levied on the bank circula-
ton.
Our forty years experience demon
strates that this guarantee fund can be
raised by tax so small that it will
deter no strong bank from taking out
circulation for fear 1t is paying for the
weaker banks. This tax can be laid
with such margin of safety based on
the losses for forty years, that the gov
eminent will be perfectly safe and yet
make the circulation attractive to the
banlss. This circulation ought to be
made fairly profitable. There has new
er been profit enough in bank circula-
ton to induce the banks to take out
anywhere near the maximum amount
permissible.
1T is going to be extremely difficult
to get anything done in the way of cur
rency legislation. To accomplish any,
thing there must be united and strong
effort. There should be no pride of
opinion or authorship in these matters
and no desire to have something new
Stability and soundness are the first
requisite for a financial proposition
novelty is the last. Let us follow the
example of the Chamber of Commerce,
choose few measures upon which
there is good prospect of an agreement
and all work together for those things
we can agree upon. In this way only
can we hope to improve our banking
and financial systems so that we can
feel they are the proper basis for our
splendid agricultural, Industrial and
transportation systems and are able
to give them the support they require
and are entitled to in the great career
we are surely destined to follow in the
century opening before us.
"A distinguished Russian statesman
said recently to a New York banker;
You have a great and wonderful coun-
try. Nowhere else in the world are
there so many natural advantages side
by side; you have a most intelligent
and active people, thoroughly equal to
their responsibilities; you have a GER
tain and wonderful future before you
if you only had as good a government
as Russia to give you proper financial
and monetary facilities you would have
no rival in the trade and commerce of
the world
I'VE should no longer rest under such
reflection on the intelligence and eff
cheney of our financial system, but cor
rect as promptly as possible the mis-
takes which have been made. Our
currency laws are a patch work from
beginning to end of measures passed
for the emergency of a civil war con-
cessiors to greenback d1atism, free sill
yer and bimetallism, all compromises
with prejudice and ignorance. They can
be and must be altered if our progress
in the trade of the world is to have
the assistance of our financial system
and not continue to be made in spite
of it,"
'"The Relation of the University to
Business" was the subject of Presi-
dent Wilson's address.
DIR. Macarthur spoke on Bankers
the Promoters and Conservators OF
Civilization" Gen. Chaffee on "Expe-
rience With Banks and Bankers" and
Mr.. Wise on Something Which Bank.
ers. Don't Know"