The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-06-28
Association at

OF the question: ol pIohI, oueil DohfAiiAe
is very risky at its best, and rejoice tf
say is exceptional.
A large number of new banks, incor-
porated this year, have been invited &c
become members of the North Carolina
Bankers Association, and thus start then
existence in good company. We need The
assistance and cooperation OF every
banker. Our association has done wonders
in its short existence and today occupies
dignified and highly respected position
among the different organizations OF the
State, and with the increase OF inks,
and the conservative and just operations
of the same, we will win the respect and
esteem entitled to a branch OF business
that must of necessity be OF the greatest
aid in the development OF the welfare
of our beloved State
The most interesting national questions
are the agitation of currency legislation,
and Mr. Aldrichs bill to amend the in
dependent treasury law Both bills tend
in the right direction, but of the two, !
think most relief would be gained by the
passage Of the amended Fowler bill, which
permits a moderate expansion of the ma
tional bank currency. 1t Is questionable
/ however, whether this, or any other bill
granting similar benefits. can pass Con-
gress The very people who would be
expected to support the measure-for diff.
ferent reasons-ether are outspoken in
their opposition or take no interest in it
whatever. 1t is opposed by men who
have clamored for years for more cur
rency, because it would increase the cir
culating medium; it is stigmatized as
imprudent banking, by men who are
persistent, if not consistent, opponents
| of banks; it is described as dangerous
though supported by years of experience
here and abroad, by men who would, if
they could, frame financial system that
would violate every teaching of domestic
and foreign experience
The national bank circulation bears a
VERY small ratio to the banking capital
and to the wealth and business of the
country Every person who is at all
familiar with the facts, knows that the
reason for this Is that, with the advance
of bonds it has ceased to be profitable to
deposit government bonds to obtain cir
culating notes. Again the requirement
that government bonds be deposited as
security for circulation, never was due
/ to considerations of safety so much as
to provide market for government bonds
to induce the banks to lend their CAPT.
tai to the government when they were
IN desperate need of money. The pro-
| hibitory tax of 10 per cent. on other cir
culation was no part of the original law,
but was an after thought due to the fact
4 that in some localities, State bank notes
circulated so we'll that comparatively few
banks of issue would go into the national
system
The national bank circulation has not
enough fiexibihty and has about spent its
force. There is little or no increase in
the circulation in the season when the
most money is needed; there is little con-
traction and often an increase-when the
need is past. This great, rich and pros
porous country is disgraced by a danger
Gus monetary stringency, verging ON a
panic, which recurs as regularly as
Providence blesses the country with a
harvest, and the more liberal Providence
is with the harvest, the more serious is
the sutumnal stringency due to financial
stupidity
The Fowler bill would not afford a
complete monetary system. 1t does not
go far enough-not near so far as our
own and foreign experience warrant. 1t
would. however, be step in the right
direction and would afford a measure of
rehef, largely preventing the alarm about
currency to move the crops. AS the idea
OF elasticity OF the currency grew in the
nation, the bill would be amended from
time to time. until eventually we could
expect system nearly, if not equally
as liberal as that enjoyed abroad at the
present time.
In conclusion, allow me to once more
thank you for the high honor you con-
ferred upon me by selecting me as your
presiding officer 1t has been a pleasure
to serve you and l trust the association
has not suffered at my hands. My
thanks are also due every member OF
the Executive Committee. and to our
efficient secretary, who have ever re,
sponded to my calls for their time and
talent.