The Washington times., 1907-12-17
BANKERS DIVIDED
OVER RIDGELY'S
FINANCIAL PLAN
Some F aYOr Central
Bank and Others Asset
Currency.
Views of Scheme Ex-
pressed by Washington
FinanCierS.

Washington financiers are no more
unit in the matter of a remedy and
preventive against panics through a
more elastic currency than are the law
makers of the Sixtieth Congress. They
admit the need, but hesitate TO approve
OF any one plan that has been sug-
gested.
Some Of the leading bankers OF the
city are opposed TO Comptroller Ridge
ly's central bank plan as not feasible,
while others consider it too big propo-
sition Yet others favor an asset cur
rency. holding to the theory that what
is good collateral for a bank ought 10
be good collateral-at 70 per cent Of its
value. and passed on by a committee Of
Government ofhCiaIs-for the Federal
Treasury.
one OF the leading bank presidents
OF the city, who refused TO be quoted
in the matter held for the asset cur
rency, while others protested that IL
would be too strong temptation TO Sc
cure circulation on wildcat mining and
other securities
II left 10 the bank presidents or the
city. the question would not be settled
any sooner than il will be by the many
men OF many minds who are now con-
sICeriug the matter IN Congress
President Stellwagen's Views.
President Edward J. Stellwagen, Of
the Union Trust Company, said:
Il am not in favor IF the central bank
idea. l rather prefer the asset cur
rency idea All the banks have good
sccuritics-assets-b 1t is difficult in
times Of financial stringency to realize
on these good securities, and therefore
they have To be thrown on the market
breaking prices and giving fresh impetus
To unIavOrable conditions. L think that
asset currency would have more back
OF IL than much Of the national cur
TcUCy. OF course. the silver notes are
S, cured by bullion and the gold notes
10y gold coin and bullion, but the green
backs and many other notes have but
the credit of the Government Us their
~l,urity.
eft would be necessary to surround an
asset currency with safeguards. The
closest kind of guard would have TO
b,. kept TO prevent worthless securities
being deposited. II might be necessary
to restrict the character Of the securt-
ties to the standard maintained by the
New England savings banks, 70 high
grade municipal and State bonds, but
would add railroad bonds, under the
supervision of the authorities having
this matter In hand
Agrees With Comptroller.
President c. J. Bell. Of the American
b
Il agree IN. q general way with
the recommendations of Comptroller
ItidEely.'
Cashier r H. Lynn, OF the American
National Bank, said:
Il would be in favor OF a central bank
? $ recommended by Comptroller Rldgely
provided that this bank was entirely
under the control Of the Government.
Any other kind Of a central bank might
be used as an instrument 10 build up
Dae section Of the country ar the eX-
peuse OF another or TO advance the in
tcrests Of a great corporation or fnan-
Cial power. ] am not IN favor OF an as
set currency or any kind OF fiat money"
George G. HeuninE, president Of the
Traders National Bank. who has advo-
Gated plan OF control, said:
The situation might be helped by per-
hitting the reserve banks to keep one
quarter instead Of one-half OF their re-
serve in central reserve banks. The law
IS entirely TOO liberal with country
banks.
II think the best plan would be 70
apportiOn the reserve of country banks
according 10 capital. Il would seem
illogical TO permit. for example. for a
bank in Richmond having a capital OF
ST. 900 600 to keep three-hfths of its Il
per cent IN a 100000 bank in Washing
ton"
President Wilson Talks.
President Jesse B. Wilson. OF the
Lincoln National Bank. said:
The varied interests Of this Gov
eminent are so immense, that one
mans plans or one mans scheme would
not be wide enough in scope to provide
for the eXgencies of the entire cOun-
Try. Before legislation changing the
existing banking laws should be made,
the entire financial situation should be
thoroughly sifted.
Centralized control Is very apt 20 be
too narrow. Under Government control
politics will enter into the affairs Of
the bank, and the wise conservatism
displayed by leading bankers IS apt %
be shaken by the coming in Of this H.
huence."
Mr.. Wilson does not heartily iudorse
the plan suggested by Mr.. Ridgely, and
iutimates that the Comptroller is not
thoroughly aware OF the tremendous
scope that his plan involves
This country says Mr.. Wilson. is
immense. Its interests are varied and
complex. Not any one man in tho
country today IS big enough to ham
die the affairs Of this country. Mis-
takes surely Will follow If that is at
tempted"