New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-11-12
WANTS MORE ELASTICITY.
CURRENCY NEEDS 1T TO HELP SOLVE
FINANCIAL PROBLEM. BANKERS SAY.


Association began its annual meeting in Tulane
Hail here to-day. Addresses of welcome were made
by Acting Mayor William Mehle. City Attorney
Samuel L. Gilmore, behalf of the city; Pro-
lessor w. c. Stubs. on behalf of Governor Heard,
and r. NJ Walmsley, OF the Clearing House Asso-
citation on behalf of the local bankers. President
Herrick replied to the welcomes and delivered his
annual address
The annual report of Secretary ]. R. Branch
was submitted, and Chairman F. s Bigelow pre-
scented the report of the executive council.
The council submitted resolution by A j.
Frame, of Milwaukee, opposing asset currency and
branch banking consideration of which was post
poned until after the discussion Of that subject to-
morrow.
The secretary's report showed a present mem
bership of 6S54. with an annual income of S67SOO
There was a net increase in membership during the
year of 9S. In the of Mr.. Bigelow's report
1t was stated that the currency plan OF Mr.. Hep
burn was Endorsed in far as it suggests the is
suanoe of currency by banks of $4,000 capital and
$4,000 surplus more to the extent of half OF
their capital stock at tax of per cent Or per
cent month";
Mr.. Herrick referring to J. Pierpont Morgan,
said:
American democracy. in Its imperial progress
has found its power and sure support in the conn
sized in its bankers Its tPade conquests. its
observer here and abroad. in the masterful gentle
house at the corner Of WaIi-st and Broad. The
Of Scores son Of OF mions he cvlsS World He
stands before the world as the embodiment OF all
in recent American commercial growth and life.
lie is looked upon as the incarnation OF the power
lean lust of commercial and industrial dominion
Yet Mr. Morgan is not even Incorporated. Bank
ing, in this most potent and portentous form Is
not great stock company, sun less anything
which can be called trust. 1t Is merely man
and his partners. 1t is Connecticut Yankees who
not, however. by inherited riches or lucky gam
bling, but by the force of his personality and his
NO r. NOR alG1ip
Here is a fact well calculated to compel radical
who have made a hobgobn of banks and bankers,
and named their monster the Money Power
Other conditions equally impressive and consPicu-
Gus have been operating forcibly in the same d.
In an era of trusts (usng the word in its popular
sense) and great combinations aiming at the re-
movement T reachin f!i FAR and Vide in trade and
PT9dueVe INDUSTRY the banks have gone on IN d 5ae
or indlyiduElity and independence as a cherlsned
before their country and the world examples OF
soldIty, conservatism and straighttorWardness;;
the more the tendency toward combination ana
the restraint Of competition affects commerce and
GoTlE T more ne ne PARKS VII an frS ~ s the
movement in the direction OF the overcapltali
banks and bankers as champions Of independence
in business and as safeguards of conservatism
John Johnston. vice president of the Marine Ma
tiona Bank. Milwaukee. speaking on Scottish
banks, said:
To American the two most striking features
branches and their system Of cash credits or cash
accounts; To one who has lived in Scotland. the
lack of banking facilities in this country is very
marked. This may seem strange. but know or a
great many villages in Wisconsin wholly destitute
of banking privileges, while villages Of equal size
In Scotland wQuid have one and perhaps two;
name three or four small towns where there would
population Of Scotland and Ohio are about the
same; few people will say that Scotland is richer
land are t much larger than those Of Ohio In Scot
land the banks touch the people not only IN the
branches are OF immense value to the rural dis
business. Every spare dollar in the country f,nds
its way into the banks.
= ] know that some OF my friends who have banks
New,York would invade their territory were branch
banks Of New-York nave all they can attend 70
Of the country. firmly believe that not single
by Eastern capitalists while IL IS more than likely
That the banks OF our larger cities would estab-
rounding country
Another moth peculiar feature Of the Scottish banks
One Of the bugaboos conjured up against branch
bank would condescend to make small loans
to their poorer customers. Now, the branches Of
hrst introduced by the Royal Bank in 1886. and
now in general use by all the banks OF Scotland.
has without doubt done more TO develop the re-
ural and commercial prosperity than any other
Not a few OF the most wealthy men in Scotland
have attributed their rise In life to having re-
OF friends, one Of the witnesses before the lords
committee stated that he had known many In
world from the low situations OF servants who
ance of frends weTe able to secure cash cred
and thereby raised themselves TO the position Of
farmers or small manufacturers.
In his address William Barrett Ridgely. Controller
of the Currency. said:
We now find ourselves in the condition of the
railroad embarrassed by the volume OF traf1c
With all the machinery OF exchange strained to the
utmost to keep up the present rate, and with every
channel swollen 10 the full with the rushing tide.
the slightest dlsarrangement spreads at once. and
is very far reaching in it's effects We must either
facilities for handling IT. In the present condition
there is not sufficient factor OF safety and there
tcity. If it does not reach the point of ultimate
rupture.
He related the prosperity OF the country in in
dustrial and other pursuits. and continued:
In spite, Of all this, the banking and financial
situation is looked upon With cSnsidera9le appre,
the reserves running down; not only in the reserve
situation is serious and requires close attention and
careful handling Now is the time for caution
banks get into trouble. What becomes later a bad
years, not when times are dull and business bad
1t is unfortunate that the weakest point Of our
such situation seems before to-day. Moth
ing could better illustrate the necessity for more
elastic banking currency than the demand for IL
at the present time. Our banks have been and are
being called upon to furnish the currency and
credits necessary to move crops, prob
ably the largest IN volume and value the country
pansion or imitation If these ba nks had the privi-
ege Of Issuing in addition to their notes covered
by bonds. amount OF uncovered notes equal to
say 30 per cent Of their covered issues. Call it
credit currency. asset currency emergency cur
guarantee fund which will absolutely protect the
n0t t and the public graduated tax and
tirement OF these notes as soon as the necessity