The Birmingham age-herald., 1907-12-17
DISCUSSION OF
 BANKING LAWS
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 unequalled succession of food crops and strong demands for our crops abroad. The point that demands attention is that our banking system is unlike that of other countries. I agree thoroughly with those, however, who believe that the pres ent is no time to urge the complete change we need.
 Correct Foundation.
 'The currency question will never down until it is founded upon correct prn- ciples. If there be anything established it is that it should be based upon the as- sets, viz. Trade bills, which expand and contract as business does, the reserve being in gold. But this does not seem to be the proper time to urge so great a change as this implies. Our first eff fort should be to get legislation to turn from the wrong to the right path by intro- ducing to some extent asset currency. As the people see the advantages of this sys- tenn we may hope to enlarge its use and gradually to abandon bond security and in due time to begin the substitution of gold, real value for our reserves, instead of government evidences of debt thus giving us the most profitable and ser proven by the experience of other coun- tries. No central bank is necessary to effect a currency, but only the cushion elasticity, which the President recom- mends"
 MT. Carnegie deviated from his set speech to say he favored the passage of resolutions voicing the assOciaton's sen timent on the matter of the "currency regulation and had prepared such a resolution, but having learned that James Seligman would later offer such a resolu- ton, refrained from making his resolution public.
 Santa Fe Mans Views.
 Victor Morawetz, chairman of the ex- ecutive board of the Atchison, Topeka and Santa Fe railway system, was the next speaker. His remedy for periods of financial stress such as has just been ex- perenced was in the formation by na- tional banks of a large clearing house as- sociation. with power in each member to issue notes upon the joint credit of the associated banks, upon the deposit with the association of a proper reserve for re- demption of these notes.
 Theodore Marburg of Baltimore, pres ident of the American Economic asso- citation, the. next speaker, said he wished to point out the danger of any circulation other than gold If he said, the one form of circulation known in money Is lacking. credit must fall. He said we must provide a place for gold in our currency system, not at tract gold to our shores
 Dudley Evans of New York dis cussed the affirmative side of the sub ject Shall Government Deposits Be Guaranteed?
 Horace White, introduced the pioneer of currency reform in New York held the negative of the same general question.
 "rhe opinion is that the United States sh ould be made responsible for four thousand millions of dollars deposited in the national banks of the country. I say all the governments in the world could not assume this liability. It would put a premium on lax methods in banking, and the banker would feel he could take risks If the depositors were secured. That would introduce bad banking Into our system, lowering the morale in all directions"
 MT. Gompers read letter from Au- gust Belmont, president of the fedora ton.
 BeImont's Plan.
 MT. Belmont, in his letter indorsed in a general way MT. Hepburns sug gestion of last year for a flexible cur rency. MT. Belmont advocated the re-