The Montgomery advertiser., 1906-07-06
CURRENCY PROBLEM
DISCUSSED nY VANDErLIP AT
 BANKERS MEETING.
Far From settlement He Says, and Urges New YoFkers to Lead Movement for Retirement
 of Conditioss.

Bluff Point, N. r., July 5.--Fran.- A vanderlip. vice president of the Ma tional City Bank of New York was ont of the principal speakers at the Nev York Bankers Association. Mir: Van derlip said the currency problem 1T this country Is far from settlement ane he declared 1t to be the duty Of thu New York association to take the leat In consistent movement for the bet terment of conditions
 Mir. Frank A. Vanderlip, vice presi- dent of the National City Bank of New York spoke about Currency"
 He said in part:
 "To my mind. we are in a lethargy of success. We hear peans of pros perity sweetIy sung on every side Un- exampied totals mark the measure of every phase of industrial and commer- ciai life. We have engaged in ex- penditures of capital on a scale so vast that 1t makes the financial operations of other days seem petty by compari- ly or so profitably employed. Business was never more active. And so. some of us say. there surely can be nothing wrong with a situation that gives such evidences of health and growth
 If financial disaster should ever come because we have failed to enact proper legislation, the blame for that QiSHBIeT VIII At5 against lUb f0AnhtTe . of New York more directly than against any other group of people.
 'rhe one thing that I want to urge is the importance of providing sci- entlfic bank note currency if we wish an indefinite continuance of prosperi- ty. and further to emphasize the re- sponsibility which rests particularly on the bankers of New York In present. ing a. plan for such currency. The plan may take one of half a dozen forms Perhaps the best one, were 1t politi- cally possible, would be the question of a government bank having the power of issue whose sole business would be in its relations with other banks and whose chief operations would be the re-discounting for other banks.
 q do not mean that any existing in- stitution could be metamorphosed in such a central bank. It would have to be freshly organized from the begin ming. It's control would need to be largely in the hands of tho favorite and It's ownership widely distributed among banking interests throughout the country. The principles of sci entific asset currency could not we'll be worked out through the medium of such an institution, as the experience of Germany eloquently testifies, but they can undoubtedly be worked out In ECfne Oliltf way
 "The fear which men so commonly have of giving a large power of note issue to small national banks will largely disappear, when the opponents of asset currency have once fairly in their minds what the result will be for providing adequate redemption facili- ties That plan can be devised which will safely permit every national bank to issue a certain amount of notes not secured by government bonds. I have no doubt and | am Inclined to think that 1t Is along that line that legisla- ton Is almost likely to be obtained. sl- though perhaps 1t is not the ideal so- lution.
 "The thing of which am absolutely certain. however, Is that a solution Of the whole problem can be attained wisely. promptly and easily If bankers W ould give to a consideration of the subject anything like the attention which it merits The responsibility Is on the bankers Of New Ycrk. Ton cannot hide behind Congress to avoid the responsibility. You cannot shift the responsibility to the shoulders of your associates in the West You are the financial leaders and the responsl- bility of leadership Is yours"