Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1907-12-04
ST|CKA[Y URGES
A FEDERAL BANK
RAILROAD HEAD FOR GOVERN
MENT FINANCIAL INsTl-
TUT ON.
DECLARES BANK FAILURES ARE
UNKNOWN IN EUROPEAN
COUNTRIES.
NEW PLAN WOULD RELEASE
PRESENT VAST SUMS HELD
AS RESERVES.

problem and proposed nnanclal leg
islation were discussed last night be
fore the Original Roosevelt Republi-
can club of ST. Paul by President A.
3 Stickney OF the Great Western
railway, Senator Moses e. Clapp and
Congressman Frederick c. Stevens
The principal address was delivered
by Mr.. stickney. He said. in part:
"The prosperity of production on
the farm, in the mines and factories,
requires that the distribution of their
products through the channels OF
commerce shall be continuous, and
such continuous distribution cannot
be accomplished without the continu-
GUS production of bank credits, which
are an essential part of each COM
mercial transaction.
Hence, the commerce of this coun-
try demands that the Anticipated pri-
mary banks now in use should be
displaced by a modern system OF
banks, which can and VIII issue ev-
cry day in the year and eve.v hour
Of the day all the credit which COM
merce requires, exercising no repres-
sive measures to reduce the volume
of such crdits, except by raising the
interest rate, so that every legitimate
merchant throughout this vast conn
try can feel assured that, as long as
he keeps his business solvent and
entitled to credit, he can obtain ali
business required, by paying the in
terest rate.
Such a system now exists in ev-
cry commercial nation except the
United States aud has been tired
and proved through all the CONNER
ciai storms of the last century and
has never failed. The purpose of
most improved banking systems is
ID to economize in the use of gold
required for reserve, because gold is
expensive and difficult to obtain, and
(2) to mass it in such quantities, and
hold 1t in such way that every Gus
toner can know the bank has got it
and that 1t is really Immediately
available to meet all the demands for
gold which will be made upon the
banks.
1.-The banks of this country are not
part of the whole plan connected in
such a manner as to create a chain
of mutual support, but they are local
and independent institutions. In
times of commercial crisis, each must
depend upon itself, and it is evident
that one bank, without the coopera-
ton of other banks, cannot support
the enormous cred is of a commercial
nation like the United States; each
begins to scramble to increase its
cash reserve at the expense of other
banks.
Banks Hoarding Money.
Such conditions now exist among
the country banks. Each country
bank is boarding all the money it can
get hold of. VIII Oh produces short
ness of money in circulation.
Beyond question there is sufficient
circulating currency represented by
notes in this country, If allowed to
circulate, to supply all demands OF
commerce, and the present apparent
shortage is due entirely to the coun-
try banks boarding it and refusing to
allow 1t to circulate.
"Unquestionably money which usu.
ally circulates from bank to bal
and from the banks to the people,
and the people to the banks-money
which. under normal conditions, pays
pay rolls and petty bills-.s now
boarded in from 10000 to $4,000 coun-
try banks and relief from the present
stagnation will come only when the
country banks return such money to
circulation. If they can get the
courage to return their surplus mon,
ey TO circulation before conditions gel
so bad as to alarm their own deposit.
ors, all will be well with them. But
if OF the other hand they continue to
hold on until general distrust of al
banks Is produced, the very country
banks which are now boarding the
money will be the first to go to the
wall
Need Modern System.
Such conditions would be inpossl
BILE II the banks of this country were
modern system of banks. The
unseemly scramble after money tC
maintain reserves is never witnessed
in any other commercial nation. be
cause all commercial nations except
the United States have systems o.
banks so connected that each banl
constitutes mutual support to ever!
other bank"
Mr.. Stickney then explained tht
system under which the banks Of Ell
rope are operated and pointed on
its advantages
The system, he said, knocks out ;
large amount OF 1seless bank credits
and therefore a largely reduces
amount Of reserve is required.
AZ the present time, the gold re
serves Of all the banks of EnglaB
and Scotland, which support the vas
credit necessary not Only to effec
the domestic exchanges but the inter
national exchanges Of the who'll