Weekly Watertown leader. [volume] (Watertown, Jefferson County, Wis.) 1908-1909, 1908-10-23
Chicago Letter

New Jersey, Chairman of House Con-
mitte9 on Banking and Currency, in
an interview said:
doubt whe Their there is any one
who is more utterly and absolutely op-
posed to Mr.. Bryan's preposTerous and
idiculous scheme for guaranteeing
bank deposits than | am. 1t is just
as absurd as it would be to pass a law
requiring all life insurance companies
to insure all lives without any exam
lnation of those injured, or law re-
quiring fire insurance companies to in
sure all risks without examination of
the property. Rejection and condem-
nation must necessarily follow an I'M
Outstanding of his scheme whicn was
put forward as vote catcher, not be-
cause he understood the economic
principle and practices Of banking.
Indeed, l do not recall his application
of any economic principles during his
long public career that has been
sound.
''But MIR. Bryan's proposition is
not more untenaple and superficial
than are the twelve reasons given by
the American Bank Association at
Denver last week. Every one #
the grounds advanced by that Associ-
alton apparently against the principles
of equal protection to all bank credit
ors, note holders, and depocitofs will
dissolve as quickly as Mr.. Bryan's
fallacy upon clear understanding of
the principles involved and full ap-
probation of the financial and curren-
CIV conditions existing in this country
at the present time.
"Until the bankers Of the Uni ed
States are authorized and compelled to
supervise themselves and made re-
spOnsible for the protection of all bank
credits, to tie more steady and per-
man: Mt employment of labor, the pro-
! lection of the manufacturer, the meT-
chant and commerce generally against
our annual spasm and periodic cata-
clysms.
"This principle of projecting bank
ers against themselves and business
interests against the consequences
flowing from the practices of some
bankers, is now in operation to de-
gree in the cities of Chicago, st.
Louis, Kansas City, and possibly some
other commercial centers, where the
clearing house committee have their
corps of bank examiners for the mu-
tual protection of the bankers OF their
respective cities.
In recent interview, Mr.. James
B. Forgan, one of the greatest, if IN
deed. not the greatest commercial
banker in the United States, is re-
corded to have said: SAT one of the
banquets | attended IN Europe. every
one of the speakers blamed the United
| States for the distress caused abroad,
and they attributed it all to our bank
ing system. | could not reply to the
structures of the Europeans simply
because | knew they were deserved.
| sat there and took it all as the rep
resentative ut faulty system must. -
Let us remember two fundamental
and essential propositions
First: Since our Standard of value
is gold nothing is fit for bank reserves
except GOLD.
Second: There is absolutely nc
| difference between a true bank note
and d deposit subject to check; both
are equally demand obligation OF
the bank, and it is only matter of
convenience to the creditor of the
bank whether he is note holder or
depositor. If he has the notes of a
bank he can by depositing them. con-
vert them into a deposit subject TO
check. Why should he not with equal
facility convert his deposit into bank
notes precisely as the customers f the
Bank of France are DUNG every day.
The amount of the debt of the bank
and the amount Of the reserves re-
ILS ILlS lu UOIu Eases. U6
conditions remain ldenlically the sans
except that the convenience of the
public has heen perfectly served.
The following ends should. and
must, be attained if our banking sys-
tenn is to become what it ought to be
to best serve our business interests,
and what its Importance in the COM
merce of the world demands.
First: Our bank reserves should all
be in gold.
Second: The required amount of
reserves should be, maintained
Third: Our currency should be bank
notes redeemabIe in gold coin. and
always directly related to business
transactions. Currency should never
be issued by the government because
government issues cannot be related
TO current business transactions, and
must always mislead the public and
are certain TO be go abused that dis
aster will certainly overtake the Gov
eminent issuing its notes because nc
natural or economic law determines
the amount of the issue.
Fourth: The savings accounts of
aI1r hapku ~houl0 all he kent seDaroto