The Cairo bulletin., 1906-10-11
MORE POWER FOR
HEAD Of THE
TREASURY
ADVOCATED BY SHAW m AD-
DRESS BEFORE KENTUCKY
BANKERS ASSOCIATION.
ATTACKED RESERVE LAW
Stating That Amounts to Be Carried
IN Vaults Of National Banks
Should &c Left With
the Secretary.


/ Louisville, Oct 10 Before the
Kentucky Bankers association now III
convention in this city, Hon. Leslie
NJ. Shaw. secretary of the trelsurg,
tonight delivered an address In whlfh
/ he advocated repeal Of the present
statute fixing the amount OF rascrve
! TO be carr ed in the vaults of national
banks and comforting of the ROVER Iii
the hands Of The secretary al tie
treasury in his discretion.
| The following Is an extract from the
spcecf.
All the leading financial countries
of Europe have large central bank.
more or less directly under goYernmens
I 'eniro3. Such an institution known
as the Bank Of North America. wac
created IN this country In the year
1881. bur Il was Of short life A sim
lar instiiut on known Oh the Bank ~
the i'nited States, was lneorp rated
IN 1871 under a charter expiring In
1911. which was never renewed Tho
Bank OF the United States of Ampr,ct
was Incorporated in 1916 nuder 4 twea-
ty.Vear charter. In 1892 President
Jackson vetoed a bin to renew this
charer. and the year following d.ract-
ID the secretary of the treasury t. r.
move government fnudt therefreri,
md II soon went into liquidation.
A sub treasury act was passed ii
1910 and repealed o5e year later Tha
present treasury system was establish.
cd IN 1876
lunumerable rep RS by committees
# bankers have been ma,le. mnch has
been spoken and MORE writer in con-
formation of the independent treas
Try ystem aud in favor of the slhss
tuition cf u large central ha1s. nattorn.
ID after the Bank of lspalan1. or Tho
Bank of France. or the Rank Of Ge~-
1lanv II Is doubtful. however whetn-
or the system viii ever he radically
changed
The NATIONAL banking act II 1860
md 1861 while not In terms amend4-
try of the independent treasury sys-
'em must be treated u e1nnection
herewith aud rs m addition thereto:
and It secms TO me wiser to perfect
what we have rather than to aitamnr
its renlacement If the people can he
brought to recognize The treasnrv
somewhat In the nature Of n great
coEornment bank and the naiioull
hanks as branches thereof. it win be
found fbof ,,ttY. a,sta,t, a. -,t Ia ..tf a.,
meets unlike that Of European cum
ries. OF course the Bank Of Eng
land and similar institutions can 80
many tn ngs that the treasure cann1f
lo The treasury cannot make com
rercial loans. but this is not essential
So far as relates to the handling II
nublic money aud con eryinE CONNER
~ial Interests by its use in periods os
great demand. aud its Withdrawal rreTi
she channels of trade in nerjods of re-
lundancy. retariing or facilitating ex-
0or's and imports Of gold as cord tipus
indicate advisable. tho system we
have. If propA-lv operatod can he
made to accomplish much of what is
contemplated by those who advocate
tho large central bank. Instead II
-ri'ici in- the present svstcm. there
fore as awkward. cumbersome and
uncoufh. it seems fo me better - ac-
oep' 70 as the settled policy Of the
country and then improve il hy cloth.
ing the secretary uf the treasury with
greater discretion ard enlarged pow
ors
The national banks 81 The country
have showa q most c9nmendsble 4 s.
uositi-u 90 cooperate vith tho treas.
gry. The wish Of the secret arv ~ the
treasury hsr been the pleasure of
ihrse banking institutions Much
praise has hccn accorded fhe treasury
department for the sale II the Panama
bonds hul am pleased 70 hrsr re-
,rf that the nricc obtained world have
rcen Impossible bui for Tire hearty 90
luerafion nf fhc national banks The
president # uue of hcze institutions
writes mo that D s bach would buv
ihcraI portion of fhe : sue aud nsv
vhaicver price I Thought anpuopriafo
others expressed nroro or Jess f-e-;v
heir desire to assist in placing the
OBLIGATIONS az a price sat
sfsctery to ihe hear II ihc ireas1rv
'cnarf ment
The present law exnrcsslv uate7
aiiouai banks the fiscal agent NJ fha
government and authorizes the deprs
RI the public money therein On anv
ecurte satisfactory 20 the secrrsarv
4 the treasury
The amou1t % reserve 20 ha ca
led ~ national hanks Is naE Gxci
IS statute thimk Tits shauid -
coneiaaea u th.ra paxa