New-York tribune., 1907-12-03

i
Domestic exchanges, and has parayzed a large
fSuenl @ the business of the country Far better. as
government itself should become authorized to is
@ertihcatae es OF great stress legal tender loan
sreh a,t. Upon appropriate security and with strin-
demption.
Mr.. sELIGMAN SPEAKS
There is no doubt in my mind" said Mr.. Selig
man. that If we had a modified central banking
system the forced closing of the knckerbocker
trust Company of New York could have been
avoided. as it would readily have hypothecated on
the hrst day of its s25.60,G00 of its
good securities with the central bank and the
needless run on other trust companies would have
been prevented"
VI the emergency currency plans, which Mr.. Sc
hg1nan criticised inadequate, he spoke particu-
larly OF the various suggestions for plan of as
set currency This plan has been under discussion
for 4 year.
Mr.. Seligman said that the present crisis had
fully opened the eyes of the entire country to the
Importance Of currency legislation in some form
He added:
Congress has not been able to enact as yet any any
permanent plan of relief. and this has been chiefly
iators have not as nef given ne sGcent time and
thought to a an int & and 5 n
on on any dehnite plafl The country now lnpefa-
There is truth in the statement OF Lord Roth
schd when he characterized this country as finan'
cially uncviliZed in its banking methods
The sPeGtaee to-day by our s :
simply shanefu .iND Ernergenoy Ie5''' clearing
certificates have been issued in nearly all large
culated to take the place of currency and all de-
Of currency which has beer boarded. The United
States government, III the person OF Secretary Cor
junc}ure and has helped the SITUATION by deposit
ing nearly all Treasury funds in the banks ano
vent actual cessation of business. He has ably
ate more pontedly that in order to obviate such
temporary provisions for relief measures some per
manent, logical and intelligent plan must be
thought out
ed by such foreign systems as have been Workins
satisfactorily for centuries and which, in times of
system This central or government bank should
tional banks. The Secretary of the Treasury ana
ed on its board. The Treasurv funds should be
deposited with the central bank and the government
proportion to its gold reserve or capital. As it
Is likely that the sole right OF such such note issue
radical plan for government bank would probably
has been admiralty deveioDed by Paul Warburg.
banker in New Ycrk. This provides for gov
hank IS ~ denosif fun With ie9ine heses an9
natonal banEs aganat United st5tes BONDS and
other approved app @ sscprtX is as , ven as
The plan has the great advantage Of providing ad-
ditional currency, and the rate of interest TO be
able TO rediscount their paper and to obtain bank
o 20 'e esued in ersnf *
times like the present make it wellnigh impossible
~ IoL t!aliSAc4S VI iiOlSS Oh oiic NilN
to the other.
WILLIAM A. NAsHs SPEECH.
William A Nash said. in part:
1t IS universally conceded that the present time
danger is fhaf the remedies viii be 5o
Gus and the diagnoses 50 differing that the patient
in m Wasing0n to-aorroW and for re months after
The d9eGF 5 Nil EN- a and I'D discuss sSs to & R9Pe f6 to
the autopsy to find out what is the matter.
financial wellbeing asked myself on what do these
base their plans, on observation or actual con
about; and must conclude that much Of it is spun
country since 1857 and referring to the loan certi
Gates of the New York Clearing House, which he
called 'the most useful and effective device ever
known in fnanccs,' he said:
Now we are in 1901. and the same agency is at
work and you all reazs @ how eeGyS f G it caT ha beed ed
Ie nsr si tb ie shn for it's tuTtner rovage As an
emergency currency it is Incompatible; as an as
that is not fraught with dangers, greatly in ex-
cess Of the benefits st, to be dfrlyed from IT. -.
peated. and always successful what should be
that expansion OF credit and the issue currency
can best be done by central responsible power
and not by series of small powers scattered all
over the country. l do not hesitate to say that
an asset currency authorized on 10 per cent, or
any per cent. basis, and intrusted 70 five thousand
banks all over tie country VIII surely result IN n
OF the country. On the other nand, if we organize
in permanent form he CLEARING House loan Ger
a crisis is already upon us. we Will provide the
country in advance with a remedy.
But how shah get this permanent form? To
answer this We come up against the most vener-
able and senseless prejudice that obstructs the
tiona wellbeing the dread Of great central bank.
We must kill this bugaboo and exercise this ghost.
errinciy to the pole than the Clearing House Ger
tiicate points to great central bank and dodge
this we may. and as probably we VIII. finally
shall come back to it and hail it as the solution
But such a bank must be organized properly or
It will never gain public confidence. The govern
be represented In it. but the dominant
power must reside in a board OF directors to which
the most eminent bankers and business shall
central reserve cities nominate directors and
you will have a governing BODY as influential and
sates St respected as tue supreme court oi 'ns ''''eo
such management and with such functions
clearing houses all the country have to-day
and S vii put Ts SR With har RF Tr9 Frea ENGLAND and
tional banks
TREASURER TREATS ADDRESS.
Treasurer Treat the last speaker. He said:
There is an undoubted sentiment that something
should be done that would place monetary sys-
TEN upon such broad and comprehensive basis
that would be lasting in its benetcent workings:
that would stand the test of time, not only Of half
a century. but entire century
Secretary of the Treasury to retire United States
notes in Of not less than Sooooco % nor exceed;
States notes and the releasing of the fund
about $3.50 900 600 in god for banking purposes The
Increased supply of gold would seem to be
suTa1ce tha1 sgs rsr neef IL ps case @ or s
900 year Of greenbacks were replaced by gold
If the gradual retirement Of gIreenbacks I was
known to be the settled policy OF the government.
credit of the country and the financial repute
sfr0m ogd far 4uwsg SIGH any ep paTy Wons sang
vince the international investor that gold was the
is ,fgs e anq night condenfi9 feel that his
would be returned TO him in gold on demand: 1t
hanking system which is doing much to uphold