New-York tribune., 1907-12-17
FOR ELASTIC CURRENCY
CITIC FEDERATION PLEA.
Nr. Belmont Says United States
Treasury Is Too Restricted.

7-b. urgent need of more elastic currency
.,.S.ern in this country the, chief topic dis
,,,esed at the first days session of the eighth
,nraI meeting of the National Civic Fedora
$50, Yesterday All the regular speakers wera
LONG in their advocacy Of some system tha.
orId he relied on TO relieve the tension in times
IF financial crisis. such the country has re-
Gently been experiencing, and all the regular
sneakers made some reference to the necessity
~ educating public opinion al this time, so that
Congress might take at least first step in the
right direction toward currency reform.
The only inl1armonous note came at the end
of the afternoon session. ~hen Alfred o. Crozer.
O lawyer of Wilmington. Del. asked for a
rhznc- 20 say few words and gave his hear
s-e 2 Jolt hy declaring that the scheme for
elastic currency was plausible delusion and
bore the hallmark Of the Wall Street panic
M r7sklng-to-order machine. Mr. Crozier sure
that the suggestion bad one all through.
but ne had no remedy to offer to prevent panics
August Belmont. president Of the federation.
.es detained in Chicago on business. but sent a
letter 70 Samuel Gompers. he first vice-presi-
dent n which he said the question Of currency
reform was the and all absorbing topic Of
the hour Without presuming 10 suggest a cur
rency reform measure, Mr.. Belmont said he
was inclined 20 tndorse the suggestions of a
flexible currency made last year by A b Hep
hvrn. president Of the Chase National Bank
end vice president OF the American Bankers
Association
Whatever measures might be taken 10 secure
eu%5cient currency for the needs of commerce,
wrote Ny. Belmont. there would still be left a
disturbing element to the stability of the money
market owing the restrictions and limitations
rlaced a bout the authority vested in the United
States Treasury for placing it's money on de-
ne han he made
-r give the Treasury the power 10 deposit It's
balances in national banks fast as accumu-
lated without exacting collateral. but no meas
IRE Of serious relief had ever been allowed TO
PASS Congress.
g- Belmont saw reason why the govern
>7ert should not deposit all its funds not ahso-
l,J-eTv needed in its Treasury without collateral
when il vas protected by the same security that
surrounds the ordinary depositor IN the na
fional banks The aggregate losses OF oeposi-
tors through failures Of national banks during
,be reriod from 1865 10 1904 were only about
or4-tv-elfth Of ] per cent OF the total amount OF
de,,osits in the banks during that period
INCONSISTENT. SAYS BELMONT
How Inconsistent therefore, in the light OF
such conditions as i have just cited. he went
or must appear the appeal TO the people OF our
Grief Executive and of public men and
bodies in general during the recent boarding OF
money that they should have confidence In their
hanks and leave their money in their custody,
while that very moment the government for
is deposits exacting under the law, how
literally interpreted. the very cream OF
the securities our national banks were able 10
produce as collateral
James Speyer Andrew Carnegie and Victor
AoraRvetz. chairman OF the board of directors
4 the Atchison. Topeka & Santa Fe Railroad
,pa
Of the federation. In taking the chair Mr.. Com
Iers announced that the subject for the days
discussion would be Protecting Peoples Saw
ings~ After reading Mr.. Belmonts letter he
asked Mr. Speyer to preside at the morning
session On taking the chair Mr. Speyer said he
failed 10 see why Mr Gompers should have
>ingled him out for the distinction Of being
one Of the bankers not identified with the recent
hurry in frenzied finance there were many
others who were not TOO busy TO discuss the
subject.
There was a notable representation Of MEM
hers Of the federation present when Nh Speyer
began his speech, and there was applause when
ne p-efaoed his remarks by stating his belief
hat the present depression in commercial and
Industrial circles would r.oS be long continued
TIE banker said that the subject Of currency re
form required legislative action OF the right
kind
Now that public opinion is aroused on the
subject let US live up reputation of being
practical people and insist upon Congressional
action before another panic is upon u.s.. said
Mr. Spezer The wishes and needs Of all
classes must be fully considered in arriving at
correct solution OF the problem. The most diff
cult and the most important part OF the ques-
ton its very foundation. in fact, the making or
gold the standard Of value. H'e settled a le"
wears ago SO correctly that it surprised the
whole civilized world Now once again must
correctly informed public opinion assert itself
and make itself felt especially In Congress
NJ tpeyer said that with each working for the
good Of eli he had no doubt the question OF a
proper and elastic circulating medium would be
settled before long. but declared the longer II
delayed the greater would be the cost
Mr.. Carnegie, Who was introduced as one or
the best known men IN the world and who got a
warm greeting from the delegates, warned his
hearers against holding the idea that there was
absolutely reliable panacea for financial
troubles and panics He said that they had their
reet In human nature and were as certain to
come .s the tides and the seasons. No system
@. currency, he said would enable the country
20 escape sessons OF depressions failures ana
Losses
Prosperity Is bound 10 stretch the lines be-
yond the breaking point" he went on. and dun