The daily morning journal and courier., 1907-11-04
.FINANCIERS IN
 L0NG CONFERENCE -
CContinued from. First Page.l

A. -- ;. ! the president down should do all in his power to reatore that confidence which is essential to national prosperity,
 we have now proceeded far enough into the present financial crisis to get pretty clear perspective of the real situation.
 "Flrst-The condition is now general, reaching every nook and corner of the country
 Second If the gold certificates, the United States notes and silver certifi- cates, or the reserve money which the banks of the country have sent into the wheat fields of the west and north- west, into the corn fields of the west and southwest, into the cotton fields of the eouth and into the country districts of all sections to settle up the years business, I say, if these reserves now scattered broadcast over the land were in the banks where they properly be- long, there would have been no money panic this fall
 "The proof of this assertion is con- clusivc. During the past four months there has been sent from the banks into the country districts approximately $500, 900, GOO of currency. Of this amount ss5O, 100000 approximately was reserve money, that is gold certificates, United States notes, and Silver certificates. If 1 this S250 900, ,000 of reserve money were now in the banks. 1t would serve as 3 basis of more than $1,2500Oe, 000 credits of loans, and the present crisis would have been averted.
 This result could have been accom- plished without increasing our bank re- serves to the extent of one single dol lar without increasing the liabilities of the banks of the country to the extent lof one single cent.
 T challenge any man to controvert l this statement and submit the follow I ing as absolutely conclusive proof of i the assertion. If the banks of the coun- try in which the $250,0O0,00O had been i deposited, had been authorized as they should have been, to create bank, notes credits as well as bank credits, and they had proceeded to convert this $250, 100000 of bank book credits into i bank note credits, the banks would not ] have been affected in any degree or in any way whatever, and the whole csln- f try would have been amply supplied with currency with which to transact all the fall business.
 How could this have been done {? Simply by authorizing each bank to issue cashiers checks payable to bear CT, which is a current certificate, that is a credit that passes by mere deliv- cry, requiring no endorsements. By this process the $250,000, 900 of bank book credits would have been convert cd into bank note credits and as the reserves required for both forms or credits should be the same, there could have been no change whatever in the situation, The bank debt is the same the amount of the reserve is the same. It has been only mat ter of bookkeeping.
 An issue of credit currency ade- quate to meet the requirements of trade and currently redeemed in gold coin is a principle followed by every civilized country in the world except our own.
 Mark this The banking power of the United States in 1890 was about S5,000,9s0 GOO, and now exceeds S1s,000,- 009,O00, or equal to the entire banking power of the world in 1890 which Null han placed at $15,985,oo9,O0o, To-day, the banking power of the entire world, outside of the United States, is only 1852, ,e0o, GOO, and of this amount 2A per cent, or more than s4,ooa0O00Oo A in cashiers checks or current ered,ta.
 That is, credit currency, aId yet wAile the United States has three-sevenths