The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1903-07-27
the rise in prices, that usually attends
these periods of imitation. s''i.<
Should Use Prudence.

SuO0I0 OOS I100VstNSs
Bankers, while availing them
selves of the opportunities afforded
by prosperous conditions, should ex-
ercise prudence, discourage reckless
speculation and discriminate careful
ly between what is legitimate and
what is illegitimate in business
There is much dissatisfaction with
our present banking system. In
banking alone says Mr.. Charles N.
Fowler, we are struggling with dis
credit system, which bears the hor.
rible scars of at least score of trag-
edies of political origin. Our banking
SYSTEM alone remains monument of
what we were in all things prior TO
the glorious development which we
boast go
MANY plans are proposed for i'm
proving our banking system, and there
is continued discussion regarding
these in financial circles. Asset cur
rency and branch banking are still
live topics and easily hold first place
among the remedies proposed.
Both save many influential advo-
Gates, the most noted being ex-Sec-
rotary of the Treasury Gage AMI ex-
Comptroller Eckels, but bankers are
still divided, while the public and the
politicians look on, and smilingly say,
Who shall decide when doctors dis
agree?
mo currency is SO popular with the
people as the present bond secured
currency, and long campaign of ed
ucation will be required to reconcile
them to any other.
The necessity for a change is uni
versally recognized, as the following
resolution, adopted by the American
Banking association, at its meeting
in New Orleans last fall, clearly
shows:
Resolved, That we favor the Gre
alton of an elastic currency under ma
tionaf supervision, SO safeguarded and
protected as to furnish unQuestionei
security to the note holder
with something more than $29 per
capita Of circulation-the greatest in
our history, the volume would seem
to be sufficient. Elasticity is the
quality chiefly demanded, but trans
ferability probably more nearly de-
scribes what is requires.
Money there is in abundance.
right time. There is unequal distri-
There is unequal distribution
and the banker who has plen-
ty is not always willing to supply It
to distant correspondent who needs
it. This situation suggests one of the
advantages of branch banks, scattered
throughout the country. Our Cana
dian neighbOrs, who have the branch
bank system, do not have this yearly
| oh ~
that vexes American bankers. When
money is needed in Winnipeg, at Van
couver or at other points, it is sent
from the parent bank at Montreal OF
from banks in the chain having no i'm
mediate demand.
;, What appears to be the most seri-
GUS defect In our system of indepen-
dent banking is community interest
In periods OF panic and distress each
bank calls in it's balance, closes its
vault doors, refuses it's neighbor as
sisrance and for a time virtually sus-
ponds the banking function. A bad
situation Is thus made worse and ctll-
inmates In general disaster. Fowle1
says, in discussing this feature Of In
dependent banking: Our fianancial
system is only a fair weather craft
wholly unsuited to carry In violent
!. commercial STORM vs. s Is
4 Recognition Forced.
I'm 1893 stress OF circumstances
forced the New York city banks into 9
recognition Of the community of inter
est idea and clearing houses certifi-
Gates alone saved them from ruin
Some general disaster may yet force
the banks of the entire country to a
similar plan, as measure of self
preservation. Standing alone, the
soundest bank cannot Withstand run
if it has used it's deposits as it must
, do to meet the legitimate require
ments of trade and fulfill its mission
in the community which it is intend
er to serve. Standing together, all
panics could be averted, provided
only sound methods have generally
prevailed.
"At recent convention of the Mis-
souri, bankers, DR.. Woods of the Ma
tional Bank of Commerce, Kansas
City, presented a novel proposition
which provoked general discussion