The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1907-12-13
FEDERAL
BANK OF ISSUE
SENATOR HANSBROuGH HAS PLAN
CONGRESS WILL BE ASKED

WASHINGTON. Nov. % Senator
II. G. Hansbrough Of North Dakota,
Nho arrived i'm Washington today viii
preseu, a petition to the president ana
congress for the establishment of a
central federal bank of issue The
senator is q member of the finance
committee and came on early to take
part i'm a preliminary discussion of
conditions to be held by the senate
finance committee.
Financial conditions i'm North Da-
kota are in good shape so far as crops,
business, etc, are concerned said the
senator. but we have suffered severely
from the money stringency and the
boarding Of money by the Eastern
banks. The political conditions are en-
tirely satisfactory. North Dakota is as
strongly republican as ever and Presi-
dent Roosevelt is a greater favOrite
than ever, if that were possible.
viii the coming congress enact
financial legislation promptly was
asked Of the senator
81 hope So he replied 81 under
stand that the president will make a
clear-cut and urgent recommendation
in his message for an emergency cur
renCy, currency based on ample Sc
curity and so taxed that will add
elasticity to our circulating medium.
] regard it as the duty of every re
publican in both houses of congress to
respond promptly to the presidents
recommendation. The legislation re-
commended by the president may not
go far enough, but it possesses intrin-
istic merit for the existing conditions.
"Of course, ] appreciate that various
members of congress will have rene
dies which they will consider more eff
cacious than a simple emergency cur
rency plan but | believe that they
, should first respond to the presidents
recommendation. If each member in
sists on a scheme, which most appeals
to him, it will be months before any
thing can be accomplished. But when
we have enacted the legislation that
Roosevelt recommends, we will put the
wheels in motion.
at the proper time I hope to intro
duce a bill providing for the establish
ment of a federal central bank of issue,
to be located at Chicago or st. Louis
and to be under the immediate control
of the secretary of the treasury. That
is what is needed; and it is my obser-
walton that the more people study the
defects Of our financial system the more
! they appreciate the necessity of such
an institution | would authorize this
bank to make loans to incorporated
| banks only on state county and NUM-
cipal bonds and other gilt-edge secur-
tiles
1T might be well to authorize this
bank to issue currency secured by Unit
ed States bonds, or, being in fact
! government institution, it's circulation
could well stand upon its reserve fund,
and, if need be, on its general assets,
III blAAiNo VI NhAlNANJ hOolNlly luG bduh
could issue increased amounts and dis
tribute it to points where it was most
needed, while the issue and withdrawal
of this currency would be controlled by
the secretary of the treasury.
Such a bank, had it existed during
the present stringency, would have is
sued currency and sent it to the North
west to move the crops. With the
crops arriving at the seaboard Euro
pean money would have flowed in to
relieve the scarcity in the East, and the
shortage would have passed without
causing any of the grave inconvenience
it has occasioned. Being located in
the Middle West, the directors of this
federal central bank would keep in
close touch with the conditions and
resources in that section where the
vast eXportable wealth of the country
is produced. They could forsee the
emergencies which are apt to occur
when we have large or high priced
crops to move, and could keep sur
ficiently close to the unusual situations
to deal with them effectually."