Arizona republican., 1907-12-11
A COMPREHENSIVE PLAN
 NOR CURRENCY REFORM
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 different thing: when you recall the fact that the present banking power of the United States now exceeds Sl6,000.- 00O.000, and is greater than the entire banking power Of the world in lS90- only seventeen years ago.
 A corresponding increase during the next thirty years will make our bank ing power more than S40.000. 900, ,000. or S3.J00, 900. 900 more than the entire banking power of the world today.
 From my experience in public life. l venture the prophecy that 1t will take several years. possibly a quarter of a century to educate the public to that degree of intelligence and appreciation that win justify a favorable vote in congress for the establishment of a financial institution adequately meet ing the commercial requirements of this great country, and to attempt it now and put such an institution into d straight jacket would be one of the greatest misfor1unes that could befall us.
 Let me call your attention to the startling fact that 1t was four years after the decisive victory in favor of the gold standard in 1896 before the gold standard act was passed-March IA. 1900.
 T am one of those who do not re- gard a great central bank as essential to a scientific, sound and wise bank ing and currency system for the United States. provided We can unify and CO., ordinate our banking interests, bring ing them substantially into one system which will secure universal co-opera- tion and the strength of a combination of our entire banking capital. and. even with a central bank the same co-ogdi- nation must be effected
 On the subject of bank unification MT Fowler said:
 Practically. all the business that distinguishes a trust company from a regular bank today has grown up since the passage of the national bank act.
 A law should be passed giving to the national banks the right of exer- cising in the respective states where located all the powers of executors, administrators. guardians and trustees.
 "Wfo will oppose granting these powers to the national banks? Do you answer The trust companies in the various states? If so. they can give but one reason, and that is cupidity and greed. evidenced by the fact that upon d much smaller , reserve than prudence justifies they conduct a reg ular banking business and carry on the trust blsir ess in addition for upon the passage of a law authorizing the national banks to do a regular trust business in addition: for upon the pas sage of a law authorizing the national banks to do a regular trust business. the trust companies could nationalize and have in turn all the advantages of the national bank act.
 Unless this step is taken, the ad vantages now enjoyed by the trust companies will gradually but inevita- bly compel the national banks to sur render their charters for trust company charters; for if a trust company is re- quired to cary only one fifth or one half the reserves of a national bank. it can afford to pay much higher rate Of interest upon deposits and eventual ly undermine the national bank.
 These conditions are constantly confronting those who are starting new financial institutions; and, of ne- ce-v'ty. the greater margin of profit promised under trust company laws determines tine decision of those inter ested: they relying upon their own wisdom as to what are proper re- serves
 A Credit Currency.
 On the subject of credit currency. after urging that national banks should be given the right to issue such cur rency to an amount equal, at least to their capital. and after urging the compulsory cooperation of national and state banks and trust companies, MT. Fowler said:
 'If our banks were authorized to convert their bank books credits into bank note credits, upon the demand of depositors, there never would be a currency famine such as we are suf- fering from now.
 Mark this; there is not the slight est difference in principle between bank book credits and bank-note cred its: for one is credit subject to order and the other is a cashiers check to bearer Tell me. would it make the slightest difference to a bank whether itowed a million to depOsitors subject 1O check or a million in cashier s checks? Certainly not; the Bank of France owes ten times as much to note holders as it does 70 deposftors' owing about s1 900. 900. GOO to the note holders and only about sl0O,00O,OO0 tc depOsitors.
 ''If the. customers of bank had their choice between these two forms of credit the habits of the people would determine whether the banp owed more to depOsitors or to note- holders.
 Credit Currency Net Expansion.
 Credit currency does not mean eX- pansion. nor does it mean imitation Whenever I fall in with anyone who has never studied this question anC thought it out, he almost invariably suggests as an objection that it means expansion or imitation orr both; wheT neither is the possible consequence O a free issue of credit currency.
 First. I assert that credit currenc, does not mean or lead to expansion Ricardo says: The issuers of pane money should regulate their issue solely by the price of bullion and neve