The Birmingham age-herald., 1908-01-22

each levy would probably not exceed S2o0 on million dollars for each year which IS a very small amount to be deducted from the profits of the bank CT In order to make the depositor ab- solutely secured. He explained that aside from stopping runs on banks. as sueh law undoubtedly would do, it would greatly benefit the bankers, as even in normal times it would bring out of hiding great deal of the money and put 1t into the banks and back into active circulation. From gov ernmental standpoint, the great pur- poses to be accomplished by the or ganization of banks were not merely to protect the depositors' money but also to facilitate the circulation of money in the country. When the idle money of the country is locked up in a private safe deposit vault or hid den under the hearth it is out of circulation as effectively for the time being as if it had been destroyed but when it is deposited in the bank eigh ty-tive per cent of 1t is loaned out and immediately returned to circulation and aids in sustaining the credits of the country.
 Emergency Currency.
 Regarding an emergency currency,
 
 believe an emergency currency would remedy the defects in our banking system, and when the depositor became frightened 1t would not prevent him from making run on the banks. With an emergency currency the de- positor would not only make run on the bank for his deposit but he would make run on them for the redemp-
  the bank. This latter proposition can not be avoided, unless the government undertakes to redeem the bank notes and, in that event. it would be an i'm mense strain upon the government to maintain a fund sufficient for the re- demption of the currency notes issued by the banks in gold, unless the gov ernment at all times carried sufficient gold in it's vaults to meet such an emergency, and in that event the ac- tual, lawful money in circulation would be contracted to the extent of the ac- tual gold carried in the vaults of the government for the redemption of tn e bank currency.
 Money Is Plentiful.
 MT. Underwood said lie did not be- lieve the present bank panic was caused by dearth of money in the country. The country has more money in cir culation than ever before in it's his tory, by at least one-third. In his opinion the panic was precipitated by a loss of confidence on the part of de- positors in the banking institutions of the country. By restoring this con fidence the idle money in the country would at once come out of hiding and go back into business channels. There is ample money in the country to at tend to the immediate wants of busi- ness without any strain on the govern ment, and by the prevention of the payment of interest by New York banks on reserve deposits the cause of the strain each fall would be removed He could not see any material cause for the panic of 1907, as there were bountiful crops, good prices, peace at home and abroad, business conditions good, labor in demand and therefore the tidal wave of prosperity should have rolled on to the music of the threshing machine and the cotton gin, the roar of the factory and the hum of the spindle. Beach recurring day should have proclaimed new industrial greatness and domestic prosperity. In a day, the mighty pyramid of our in dustrial successes was destroyed a deluge of distrust and disaster was precipitated upon the nation because we had a banking system that did not command the confidence of the people and was unable to sustain the credits of the country.