The news-democrat. (Providence, R.I.) 1906-1909, 1907-12-16
CONTINUED from Page one. }

Continued from Page One)
rectly that IL surprised the civilized
world.
Correctly informed public opinion once
more has to assert itself and to make IT.
self felt. especially in congress. Per-
sonally l have no doubt that with COM
mon sense; with spirit OF fairness; with
the desire OF each to subordinate individ-
ual preJudices and preference to the good
OF ALL we will ere long also solve this
question or proper and elastic circulat-
Ing medium, based on the gold standard.
But time is money. the longer we wait
the more II will cost all OF US in the mean
time
Victor Morawitz. chairman OF the
board OF directors OF the Atchison, To-
peka and Santa Fe railroad, said in
part:
II believe that the establishment of n
large central bank, clothed with the nee
essary duties and powers TO supervise and
control the credit situation. would not be
practicable or desirable in the United
States, You could never convince the
people OF the United States that it
would be desirable or safe TO vest In any
man. or set OF men. the vast power Of d.
rect!pg the operations of such a bank and
of controlling the finances of the whole
country. Such a bank could not be -es-
tablished In the United States because II
ca. methods and our business habits
'It has occurred 10 me, however that
the beneficial results OF a large central
bank may be obtained without itsN objec-
tionable features by adopting substan-
TALLY the following plan: Let the ma
tional banks form an association, in the
nature OF a large clearing house associa
tion, for the purpose of enabling each
member OF the association to issue notes
upon the joint credit Of the associated
banks, upon depositing with the associa-
tion a proper reserve for the redemption
OF these notes. and security in the form
OF a guarantee OF some approved clear
ing house association, of bonds or of
ordinary banking assets, bat preferably
the latter, for the difference between the
deposited reserve and the amount OF the
notes The association should be con-
trolled by board Of managers elected by
the associated banks, each bank voting In
proportion TO its capital stock, and this
board OF managers should have power TO
pass on the collaterals or security and to
regulate from time to time the percen-
tage of the reserve TO be kept by the
several banks on deposit with the asso-
citation against their outstanding notes.
BY increasing or diminishing the reserve
which each bank would be required TO
keep against its notes, the board OF man.
ayers could control the volume OF the
outstanding notes not covered by the re-
serves. and to some extent could equalize
and regulate the prevailing rates OF in
terest as well as the import and export
OF gold.
II should take the minimum reserve to
be kept up by each bank against it's notes
on s5 per cent, but tho managing board
should have power from time TO time TO
increase the percentage. each bank being
required at all times to keep Up Its re-
serve at the prescribed percentage OF its
outstanding notes. I shauld give the gov
crnment power to control the note Issues
by giving TO the secretary of the treas
ury power at any time to increase the per-
centage of the reserves to be kept by the
banks against their note issues. Either
the government, through the secretary
of the treasury, or the managing board
OF the joint issue department (Which
would express the judgment of the bank
ers throughout the country, could, at any
time, force q contraction OF the outstand-
ing notes and OF bank credits generally
by requiring an increase OF the note re-
demptlon fund. The government would
thus have tho power at any time to force
the retirement OF all or any part OF the
notes.
'"rhc association would have no purpose
regulate the issue of the notes on the
joint credit of the banks. The association
would have no capital would not receive
deposits and would not do a banking
business
CARNEGIE TALKS.
When the eighth annual meeting of the
National Civic Federation was called TO
order today at the Park Avenue hotel,
there were more than 100 men and women
prominent in various walks of life in at
tendance. A telegram was received from
August Belmont. president of the teder-
alton, saying he would be unable to be
present at the opening session, but would
arrive later. In his absence First Vice
President Samuel Gompers. called the
meeting to order and called upon James
Speyer. the banker To preside at the ses-
sion. first having announced that the sub
ject before today's meeting was: Pro-
tecting the Peoples Savings"
Mr.. Speyer then introduced Andrew
Carnegie. who said:
LET us dismiss from our minds the
idea that there is any cure for financial
troubles and panics. These have their
root In human nature and are as certain
as the,tide or the storms. the warm stim-
ulating sunshine OF summer succeeded by
the icy, frozen winter, and are Just as es.
sential for tho regulation. clearance and
purlncauon or business as the changes arc
for the general health OF human life. Nc
system OF currency will enable VA TO e.
cape seasons OF depression. failure and
hsses. Prosperity is bound TO stretch the
lines beyond the breaking point and dul
times are needed 10 restore them; and
just in proportion as the percentage OF the
total OF legitimate business grows smaller
to that OF speculation and gambling upor
margins. financial disasters will increas,
In number and severity
let us. therefore. dismiss all para ceas
sor sr~hics such rs we have Just expcri-
onced and which were due several years
ago. but were delayed by an uneouaied
succession of food crops and strong De.
mands for our crops abroad. Tho point
that demand attention IL that our bank.
! ing system is unlike that Of other coun
| tries. asree thoroughly with those
however. who believe that the present 4,
no time 10 urge the con1viete chsrrs ~