The Minneapolis journal., 1906-10-06
BANKERS ADVOCATE ]
CURRENCY REFORM
OPINIONS VARY AS TO THE BEST
SCHEME.
Leading Financiers Of City Discuss
Suggestion of New York Chamber Of
Commerce Committee for Central
Bank, Part Governmental and Part
Local-Move in Right Direction.

Donald S. Culver, cashier of the
National German American bank Of st.
Paul, will be Minnesota's representa-
tive at currency conference in st.
Louis between the New York chamber
Of commerce special currency commit
tee, the legislative committee of the
American Bankers association, and
representatives from the banking asso-
Citations Of the different states.
The report Of the chamber Of COM
merce committee, issued this week, has
been received by S. A. Harris, presi
dent of the National Bank Of Com
has outlined the best plan suggested for
emergency asset currency. .~ r. H..
Task Difficult. -
"The special committe Of the CHAM
Der of commerce of New. York ap
pointed last March to investigate our
currency system and suggest desirable
changes, had a most difficult task to
perform, - said Mr.. Harris. 1.-THE
matter involved concerns not only the
banker, but all classes Of citizens, and
it seems to me that it is high time for
all Of us to be giving more earnest at
tention to this question. r ---s
"The high standing and interna-
tional reputation of the gentlemen con
stituting the committee gives to their
report, just published, unusual interest.
1.-THE committee recommends first the
establishment of central bank of
issue, partly under government control,
with branches in the leading cities.
This central bank, thru it's relations to
the banks Of the country, and also to
the government, would be able, the
committee believes, to give to our cur
rency system the desired fexibility, and
relieve us from the constantly recurring
periods Of monetary stringency.
Plan Is Good.
eff the establishment Of a central
bank Of issue is found not desirable
the committee recommends that ma.
tional banks be authorized to issue
under certain conditions and restric'
amount, based on assets and which
shall be retired by taxation when it has
| accomplished it's purpose.
1t seems to me now, with the
limited consideration I have given the
report, that the committee has outlined
the best plan yet put forward for ar
emergency asset currency.'
p Question Is Delicate.
Some of the bankers believe tha
the people will not favor the centra
bank plan, while others state that tn
general mind on the subject is at pres
ent in such hazy condition that the,
cannot be blamed for being unable t.
give a definite statement as to tn
probable operation Of the New Yor]
plan.
E. W. Decker, vice president Of tn
Northwestern National bank, said: {"
am in favor of some change in our cur
rency which will make It possible t.
issue more Of it during the crop move
! ment, when it is needed, but unde
conditions which will require the re
demption as soon as the need is file,
and 50 it cannot encourage speculation
and the spreading out Of business.
"The return will probably have t,
be accomplished by heavy tax Of SOM
Sort. ...
Ernest s. Brown, of the First Nat
ional bank, who is secretary Of tn
Minnesota Bankers association, said
"Generally speaking I am againsnt tn
central bank proposition. Of course
while there must be some currency leg
islation, it doesn't appear to me tha
q plan which would meet the require
ments has been solved yet.''