New-York tribune., 1907-12-17

times are needed to restore them, and just in
proportion as the percentage of the total Of
legltlmate business grows smaller TO that of
speculation and gambling on margins financial
disasters VIII increase in number and severity.
Le' us therefore dismiss all panaceas for panics
sueh as We have just experienced, and which
Were due several years ago. but delayed by an
unequalled succession Of good crops and strong
demands for our products abroad
We proudly proclaimed at the close of the
Rebellion that would show the world one
tion out of debt This seems to have been lost
sight Of by our leaders to-day. Not a word is
hesrd about this from either party. Neverthe-
less. we may think, expect the people to rise
soon and recall their statesmen to the true path
of economical expenditure"
Even canada, said Mr. Carnegie. had an elias
TIC system. If American financial institutions
could promptly meet even for day any sudden
call for unusual sums panic would sometimes be
averted altogether. he declared. citing the dis
turhance of resources caused every autumn. when
between s20o.ooo,00o and s3oo0oo.o 900 of addi-
tional currency is needed to move the crops.
Other nations. he went on, able to get
their note issues without compelling the banks
TO lessen their powers to meet the demands of
business. This government. he declared. could
exact fund from banks ample TO secure the
currency. the Fowler and Hepburn bills sug-
gested, upon emergency notes.
Mr.. Carnegie in declaring that this country
has not only the very worst. but also the most
expensive system Of currency known among
civilized peoples called it an "old fashioned.
rickety piece of antiouated machinery" He IA
vored the concentration of the attention of the
advocates of the change upon the Fowler and
Hepburn bills. Neither. he said. however.
touched the question of gold reserves except in
providing that taxes levied by the government
on the extra issue of notes should be paid in
gold.
Mr. MORAWETZS PLAN.
Mr.. Morawetz, while believing that the estab
lshu1ent Of a large central bank empowered to
handle the credit situation would not be prac-
ticable or desirable, because opposed to Ameri-
can political methods and business habits,
thought that the beneficial features of such an
institution without the Objectionable ones might
be obtained by having all the national banks
form an association like a large clearing house
association BY this device each member of the
association might issue notes the joint credit
of the Associated Banks on the deposit Of a
proper reserve anu security.
Mr.. Morawetz sugges.eI ao.e-nInent control
of the note issues by giving the Secretary of
the Treasury power at any time TO increase the
percentage of reserves 10 be kept by the banks
against their note issues. Mr. Morawetz did
not agree with Mr.. Carnegie in his comparison
of the American banking system with that Of
Scotland or Canada He thought conditions
were too different TO justify such a comparison.
Mr.. Carnegie said that he had intended to in
troduce a resolution favornG currency reform
to be adopted by the federation. but gave way
TO Isaac \. Seligmsn. On motion Of MT.
Slicer the resolution was referred TO a COM
rnittee. The resolution. read. urges upon
Congress the speedy passage of q measure TO
frnpart to the currency system greater elas-
ITCHY.
At the opening Of the afternoon session Post
master General George Won /. Meyer read
paper Postal Savings Banks in which he
spoke of the departments plan to make the rural
free delivery routes self-sustaining by operating
a special local parcels post rural routes, which
would enable farmers and others living in re
mote sections make great saving in goods
from towns and cities
Andrew Mills, president OF the Dry Dock Saw
.ngs Bank. in an explanation Of the operation of
the savings bank said that depostors in the saw
ings banks of New York State had enough money
70 discharge the entire national debt and have
ss4 100000 left over. Mr.. Mills caused Mr.. Car
regie to chuckle when he said that matter
of fact the tenement house dwellers of the
crowded East Side. who formed a large proper
ton of the depositors in his bank.
homes To Mr.. Carnesie's question the bank
president said his institution paid per cent in
terest The profit TO the bank alone was only
about one-fourth Of l per cent, just enough 10
cover running expenses.
.Ex-Governor Myron T. Herrick of Ohio also
urged the necessity OF speedy currency reform
and agreed with Mr.. Speyer that the first step
had been taken when the people. educated up
to the Is 10 j doctrine in the campaign of 1896,
had emphatically declared for the gold standard
Mr Herrick questioned whether the establish
raent OF postal savings banks recommended by
the Postmaster General would really be bene-
fetal to the country. He was applauded "heh
he said that the trust company was compara-
tively recent development, and though 1t had not
Vet found its sphere would eventually do So
President Eliot OF Harvard in commenting on
Mr. MiIls's paper showing that an overwhelming
ma iority of the total deposits in savings banks
we're made in institutions in New YORK ano
New England where the deposits were properly
safeguarded. suggested that the postal savings
hank might fill such need in other sections OF
the country. where the people had not so much
confidence in banking institutions
ARMY DIRIGIBLE BALLOON.