Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1907-12-03

phases was discussed here tonight
before the American Academy of
Political and Social Science. .a
The speakers included F. A. Van
derlip, vice president of the National
City bank of New York; William B.
Ridgley, comptroller of the currency;
Charles H. Treat, o.. S. treasurer;
Jacob H. Schiff of Kuhn, Loeb & Co.
New York; Isaac N. Seligman of r.
& w. Seligman, New York, and Will
liam A. Nash, president of the Corn
Exchange National bank of New
York.
Mr.. Vanderlip presided and in his
Introductory address said of the
financial condition:
Some people attribute the trouble
to the policies of the president of
the United States, while others find
cause in the gambling of Wall Street,
but it is probable that in neither of
these extremes will be found the real
cause of the present financial situa-
ton. The Boer war and Russo
japanese wars necessarily caused
the destruction of much wealth and
Immediately following these wars
there came an unprecedented period
of worldwide activity that found in
sufficient capital. /"
Philadelphia, Dec. 1.-THE estab-
Iishment of central bank, jointly
owned by the government and the ma
tional banks, was advocated as a
means Of preventing financial crises
in the future by Isaac N. Seligman,
the New York banker, in an address
before the American Society of
Political and Social Science here to-
day. Mr.. Seligman referred to sim
I liar systems in use. in France, Eng
land. Germany, and other European
countries, and said that in financial
matters America can probably be
guided by the counsel of eminent
French financiers and bankers.
Mr.. Seligman spoke on the topic,
". Lessons of the Financial Crisis
He. said that the spectacle presented
today by our currency to the civil
lied banking community of the world
is simply shameful, and declared that
none of the currency reform plans
which have been suggested up to this
time would adequately meet the sit
uation. Some measure of relief
might have been afforded the coun-
try had any of these plans been in
operation during the present crisis,
he said, but at the same time it
would serve only as palliative and
not as a cure. "a
The proposed central bank, he be-
Iieyed. would result in certain and
permanent relief. The plan provides
for a bank limited chiefly to transac-
tions with the clearing houses of the
various cities It would deposit
funds with clearing houses and ma.
fional banks against United States
bonds and other approved securit.
{ as well as commercial paper an6
bankers bills with proper margins
There is no doubt in my mind,
said Mr.. Seligman, that if we hat
modified central banking system
the forced closing of the Knicker
4 booker Trust Company of New Yorl
e could hare been avoided, as it woult
readily have hypothecated on tn,
first day of its. run $25,0O0.0O0 o
more of its good securities with tn,
central bank, and the needless run
on other trust companies would hav
been prevented. -
OF the emergency currency plan
which Mr.. Seligman criticised as in
adequate, he spoke particularly o
3s the various suggestion for a plan o
u asset currency. This plan has bee
under discussion for a year. .tSuc
a plan, advocated By many student
and businessmen" said Mr.. SeligmaI
mas been strongly opposed by man
thoughtful, practical financiers. Ha
n the thought ever occurred to yor
gentlemen, what would have bee
our present situation II this pla,
had gone into effect, and if ali of til
additional emergency circulation pre-
yided for by such plan had been il
]. sued during the summer month
A when money was stringent? Woul
we have been much better off nov
H and would we not again be appea
ing ID Secretary Cortelyou for help?
ss. Mr.. Seligman said that the preseI
Y crisis mas fully opened the eyes /
the entire country to the importanc
of currency legislation in some forr
has convinced the people nc
Wall street, but the west and sont
as vel that some method must
4 found To prevent a recurrence OF til
a ~