The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-12-27
Voice of the People.
Mr.. i,oynll'. Currency I'lnn. !.


slr,-1 think the pinh4of, Mr.. John
r. Branch in this mornings issue Of
your paper would Improve our. curren.:l,
cy system. but l do not think 1t would
my recently published book. as IN
emergency plan. The defect ins Mr..
B h.a plan rs an emergency plan is
was needed. while mine viii fnstanta-,
neously supply any given quantity at
there as soon as they show their heads
they are never heard Of elsewhere. But
II they are allowed to get the best
OF Wall street, they spread over the
desolation in the uttcrmost corners of
the Union., What is needed is an
amendment in the laws that Will en-.
able the New York banks TO take out
what timid fdepositors draw out Of
them and lock up, TINS all to be forced
back as soon as the panic Is over by
could have done this at the beginning
OF the recent panic 1T would have
been "nipped in the bud
Mr.. Branch's plan contemplates that
all the national banks all over the
Union may take out certain amount
OF currency proportional to their CAPT
ital. But this would only allow the
New York banks to take out lin
their doors and this limited amount
might be very far from reaching the
amount that the, occasion required.
Ny plan allows the New. York OK o banks Ks
! or $20.000.000.00O or any other sum, for
use Tomorrow morning. Will briefly
define my plan.
Any bank wishing to take advantage
ln Fol m Inn Ell 1,,tf
the subtreasnry In New York any
quantity of its notes completely ex-
ecuted except for wait Of the Presi-I
dents signature. The government will
at New York $l,000.000Ooo of Its bonds
go to the Subtreas,,ry With first-class
city, State or railroad bonds. and ask
curlty to the government fol-. what Is
to be done. The Secretary of the Treas.
ury will be consulted by telephone to
know whether the bonds offered shall
| treasurer will deliver the notes asked
Tor BY the bank and place at the back
OF them the misunderstanding bonds
OF the government, and that bank has
notes 1t wants secured by government
bonds, and the government is secured
against loss by the banks bonds de-
posted with 1t. The government can
|
viding that the Secretary OF the Treas
ury may call on the bank for further
security If its bonds depreciate and a
margin may be required at the first
have to be sold to make the banks
notes good, per cent. bonds Will
be sold in place of the non interest
bearing bonds.
Under such a law as this the banks
of New York could this evening take
out any sum whatever OF government
secured notes that was necessary for
controlling the situation. and tax
upon those notes would force their re-
turn as soon as the emergency was
over.
have been asked where would the
banks get the bonds to deposit? an
swer that they w.uld use all of their
deposits in buying bonds if the emer-
gency required 1t. They would have
the government secured notes to nav
out 10 their depositors and nine out
Of every ten would accept them.
| The currency situation comes down
| to two propositions.
LIST. The old State bank system in
which each bank takes care of Its
ID. The national bank system. in
/ which the notes are secured by govern
ment bonds.
You may discuss the subject until
doomsday. but 1t will always resolve
propositions. The old state bank sys-
TEN is the constitutional and the true
economic system. But the people OF
| the United States arc SO welded to the
idea OF note good at its face all over
| the Union that they will never give UP
| the feature Of the governments bond
at the back OF the note. 1t is singing
psalms to dead horse to talk to then,
about 1t. and the practical man deals
| with conditions as he finds them.
In conclusion let me say that l be-
| lieve 1t would be wise in Congress to
adopt both Mr.. Branch's and my plan.
/ His plan might answer to keep off pan
lies, but mine would certainly avert them
If they come on In spite Of his.
| WILLIAM l.. ROYALI.
| Richmond, Va. Dec. II. 1907.