The daily morning journal and courier., 1907-12-13
DIFFER AS 10
 CURRENCY SYSTEM
tContinued from First Page)


 ---------------- the thing loose. God only knows what will come. I think we would better stick to what we've got.
 The present currency is bad; it is unscientific; it is not connected with specie: there is no true basis for 1t; It is the greatest conceivable foolishness, Some day we may get ready for some grand reform, but until we do, let us hang on to what we have"
 The foundations of a currency sys- tenn which would work were suggested by the three speakers. MT. Morawetz suggested system of na- tional clearing house which would guarantee the bank notes issued and disconnect the currency system so far as possible from the national govern ment.
 Prof. Emery's solution of the dif- ficulty was the deposit of the govern ment money in the national banks. The whole of the money was to be de- posted and the amount to each bank limited by the amount of capital stock of the bank.
 Professor Emery and Mir Morawetz both said that politically it was im- possible to establish United States bank in this country, but MT. Conant, in his solution of the difficulty, chose this method.
 He maintained that it was possible to establish a national bank in this country, while MT Morawetz had said that, no matter how honest and ca- pablo the men placed in charge of a government bank were, the people would sooner or later think that they were working for personal ends or for the good of some particular part of the country
 He cited the banks of England. France and Germany as examples of successful national banks, and spoke of the slight shifting of interest on call money in those lands. He said that the United States was behind al- most every other civilized country in it's currency system. What had been witnessed during the past six weeks was really equivalent to the suspen- sion of gold payments. It was not the fault of any individual banker un- der existing conditions but was thelr fault in so far as they had not aided in the creation of sound currency system. A crisis could not be pre- vented altogether by a better currency system, but the shock could be allevi- ated and normal conditions could be restored without the degree of panic and distrust which had prevailed dur ing the present crisis. If we had had central bank with proper powers, or system of note issues giving broader powers to the existing banks to meet such an emergency, 1t would not have been necessary to suspend currency payments.
 The advantage of a central bank was, MT. Conant said, that It was in a l position to meet all the temporary needs of an emergency by re-discount- ing for other banks as instanced in this respect, the Bank of France and the Bank of Germany.
 1 Such an institution has the power to adapt the rate of discount tc~the re- Guirements of the situation in such a | way as to check the. outflow of gold bringing In gold when 1t was needed putting a brake on speculation, and generally safeguarding the general commercial interests of the country In this country there was no such cen tral authority except the clearing house committee, which could only act in great emergencies. Sn other words, the German system prevented panlcs, in- stead of staying them after they had | begun.
 The proposal for central bank, the speaker thought, was not necessarily hostile to an increase in the powers of the existing national banks to aid tlfe community during the crop moving season and at other periods of stress by the issue of notes against genera assets. Such a system would not only permit expansion but 1t would compel retroaction when the need for clrcula- l ton was over, which was not the usua working of the existing system of bono secured issues. It was doubtful if 6 central bank would be competent, at any rate for many years, to supply the entire circulation of the country, but 1t stood at the safety valve, like a trained engineer, 1t would be able to prevent unwise expansion by other banks and at the same time meet the need for expansion when 1t arose.
 Because of the fact that Col. N. C. Osborn, president of the Economic club, was ill with severe cold, Attorney Talcott H. Russell acted as toastmas- ter and those who delivered addresses were: Dr. McLain, Max Adler, Frank & Butterworth, c. H. Hartman, John w. Alling, James Hillhouse and Attor- 1 npv Frank Rlshnn