The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1908-10-13
ng his long pubic career that has

ing MS long PUBIC career that has
been sound.
But Mr.. Bryan's proposition is no
more untenable and superficial than
age the twelve reasons given by the
American Bankers association at
Denver last week. Every one of the
grounds advanced by that association
apparently against the principles of
equal protection to all bank creditors,
note holders and depositors will dis
solve as quickly as Mr.. Bryans fall
acy upon a clear understanding of the
principles involved, and full appre-
citation of the financial and CURRENCY
conditions existing in this country at
the present time.
Until the bankers Of the United
States are authorized and compelled
to supervise themselves and made re-
sponsible for themselves we shall not
secure the reforms that are essential
to the protection of ali bank credits,
to the more steady and permanent
employment of labor, the protection
of the manufacturer, the merchant
and commerce generally against our
annual spasm and periodic ca
tacylsims.
FOf Cle8Nlng Houses.
This principle Of protecting bank
ers against themselves and business
interests against the consequences
Towing from the practices of soma
bankers, is now in operation to a de-
gree in the cities Of Chicago, ST. Louis,
Kansas City and possibly some other
commercial centers, where the clear
ing house committees have their corps
of bank examiners for the mutual pro-
lection of the bankers of their respec-
tive cities.
In recent interview Mr.. James B.
Morgan, one Of the greatest, If in
deed not the greatest commercial
banker in the United States, is record
ed to have said: "At one of the ban
quets attended in Europe, every one
of the speakers blamed the United
States for the distress caused abroad,
and they attributed all to our banking
system. could not reply to the stric-
lures of the Europeans simply because
knew they were deserved. 1 sat
there and took 1t all as the represen-
tative of a faulty system must"
Gold Bank Reserve.
Let us remember two fundamental
and essential propositions:
First: Since our standard of value
is gold. nothing is fit for bank re-
servesr exceptsges ~" vs.
Second There is absolutely no dif-
ference between true bank note and
a deposit subject to check; both are
equally a demand obligation of the
bank, and it is only matter of con-
venience to the creditors of the bank
whether he is a note holder or !de-
positor. If he has the notes of bank
he can, by depositing them convert
them into deposit subject to check
Why should he not with equal facility
convert his deposit into bank notes
precisely as the customers o f the
Bank of France are doing every day.
The amount of the debt of the bank
and the amount of the reserves remain
the same in both cases. The condi-
tions remain identically the same ex-
cept that the convenience of the pub
lie has been perfectly served. .
Ends to be Allowed.
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 interest,
and what its Importance in the COM
merce of the worlds demands:
First: Our reserves should be in
gold.
Second: The required amount of
reserves should be maintained.
Third: Our currency should be
bank notes redeemable in gold coin,
and always directly related to busi-
ness transactions. Currency should
never be issued by the government
(cont,n,od -, pooo ...N