The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-07-05
REFORM
! PROSPERlTT'S BASE
Vanderlip Declares Action Must
Be Taken to Retain
Good Times.

Bluff Point, N. Y, July 5.-FTank
A. Vanderlip, vicepresident of the Ma
tional City Bank Of New York, was one
of the principal speakers at the New
York State Bankers association today.
His topic was s'The Currency Mr..
Vanderbilt said that the acurrency prob
lem in this country is far from settled
and he declared it to be the duty Of
the; New York association to take the
lead in consistent movement for the
betterment of conditions. Es,
Frank A. Vanderbilt said in part:
"To my mind we are in lethargy
of success. We hear peans of pros
perity sweetly sung on every side. I'm
exampled totals mark the measure of
every phase of industrial and CONNER
cial life. We have engaged in expendi-
lures of capital on scale 50 vast that
it makes the financial operations of 9th
er days seem petty by comparison. La
Dor was never before SO fully 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 evil
dences of health and growth.
-, If financial disaster should ever come
because we have failed to enact proper
will lie against the bankers of New
York more directly than against any
other group of people. The. one thing
that I want to urge is the Importance
of providing a scientific banknote cur
rency, if we wish an indefinite contin-
uance Of prosperity, and further to en-
phasize the responsibility which rests
particularly upon the bankers Of New
York in presenting plan for such cur,
rency.
Government Bank Best.
The plan may take one of half a
dozen forms. Perhaps the best one,
were it politically possible, would be
ns 6s 0f esua Whose s
business would be in it's relation with
| other banks and whose chief operations
| would be the rediscounting for other
banks.
I do not mean that any existing in
stitution could be metamorpho into
| such a central bank. 1t would have
to be freshly organized from the be-
| ginning, it's control would need to be
largely in the hands Of the govern
uted among banking interests thruout
the country.
The principles of scientific asset
currency could well be worked out thru
! the medium Of such an institution as
the experience of Germany eloquently
testlties,g but, they can undoubtedly be
worked out in some other way.
Solution In Note Issue.
The fear which men so commonly
have Of giving a large power of note
| issue to small national banks will large
ly disappear when the opponents of, as.
set currency have once fairly in their
minds what the result will be Of pro-
viding adequate redemption facilities
That plan can be devised which will
safely permit every national bank tc
issue certain amount of notes not
secured by government bonds have nc
doubt and I am inclined to think thai
it is along that line that legislation il
most likely to be obtained, altho per
haps it is not the ideal solution.
The, thing Of which I am absolutels
certain, however, is, that solution o.
the whole problem can.be attained wise
ly. promptly and easily if bankerj
would give to a. consideration of tn,
subject anything like the attention
which it merits: The responsibility i
on the bankers Of New York. 70,
cannot shift the responsibility to tn
shoulders of your associates in the west
You are the Financial leaders and thu
= responsibility Of leadership is yours