The Mena weekly star., 1907-11-28
FAVORS 4 CENTRAL BANK
Senator Hasntrough, of North Da- kota, Would Put Institution
 in Chicago or St Louis.
WEST WOULD BE GREATLY BENEFITED
The Senator Says, However, That ths Presidents Recommendations Should First be Enacted Into Law-WiIl m troduce the Bill at Proper Time Blames Eastern Banks.

IFCGdNC tlS DtiI dt fiStSi
 Blames Eastern Banks.
 Washington, Nov 23.-A federal central bank of issue. located either in St. Louis or Chicago, is advocated by Senator Hansbrough of South Da- kota, member of the senate com mittee on finance and the first mem Der of that important committee to voice his opinions in relation to the present financial situation and pos slble legislative remedy.
 Senator Hansbrough, discussing the subject of financial legislation, said.
 Financial conditions in North Da- kota are In good shape insofar as crops, business, etc, are concerned, but We have suffered severely from the money stringency and the hoard ing of money by eastern banks.
 "Will the coming congress enact fi- nancial legislation promptly" was asked the senator.
 q hope so," was the reply. 'I un- derstand that the president makes a clearcut and urgent recommendation in his message for an emergency cur rency, a currency based on ample se- curity and so taxed that 1t will add elasticity to our circulating medium. l regard it as the duty of every re- publican in both houses of congress to respond promptly to the presidents recommendation. It should be remem- bered that there is no panic in the sense that there was one in 1893. The times are good It is only money that Is short and to some extent there is lack of confidence That is psy- chological. The legislation recon mended by the president my not go far enough. but 1t possesses intrinsic merit in existing conditions and can do no harm whatever
 s'Of course I appreciate that the var ious members of congress will have remedies which they consider more efiicacious than simply the emergency currency plan, but believe that they should first respond to the presidents II Cd1h insists on the scheme which most ap- peals to him 1t will be months before anything can be accomplished. But when we have enacted legislation the president recommends and by so do- ing have again put the wheels in mo- tion, we can consider further meas ures.
 'At the proper time I hope to in- troduce bill providing for the estab- lishment of a federal central bank of issue, to be located at Chicago or St. Louis, and to be under the immediate control of the secretary of the treas ury. That is what is needed, and it is my observation that the more the people study the defects of our finan- cial system the more they appreciate the necessity of such an institution. would authorize this bank to make loans, to incorporated banks only, on state, county and municipal bonds and other gilt-edged securities.
 "It might be well to authorize this bank to issue currency secured by United States bonds; or, being in fact government institution, it's circula- tion could well stand upon it's reserve fund, and if need be on it's general assets. In times of currency scarcity the bank could issue increased amounts and distribute it to points where it was most needed. while the issue and withdrawal of this currency would be controlled by the secretary of the treasury
 "Such bank, had 1t existed during the present stringency, would have issued currency and sent 1t to the northwest to move the crops With these arriving at the seaboard, Euro pean money would have flowed in to relieve the scarcity in the east, and the shortage would have passed with out causing the grave inconvenience it has occasioned. Being located in the middle west, the directors of the federal central bank would keep in close touch with the conditions and resources in that section, where the vast exportable wealth of the country Is produced. They could forsee emer- gencies which are apt to occur when we have large or high-priced crops to move and could keep sufficiently close to unusual situations to deal with ttam effectively"