The Washington herald., 1908-03-07

! threatening us-dangers which viii In
crease as our couatry grows in pOpula-
/ tion. wealth, and productive energies.
While / believe in an asset currency.
under such safeguards and restrictions
as have proved successful In the expert
ence and practice of other commercial and
Industrial nations. l have become con-
vinced of two things; first, that il is i'm
possible at this session Of Congress to
revOlutiOniEe our banking and currency
system; second. that IL Is absolutely es-
sential that we should have at the earliest
possible moment some form Of emergency
currency We do. not need this relief to-
day. but no one can predict when It will
be required because of the limited amount
OF available currency, amounting TO less
than per cent Of the total deposits In ali
the banks of the country
Provides simple Remedy.
''The Aldrich bill so-called. is simple
in its remedies, practical and easily un-
derstood. 1t is a makeshift, II you
please, but as long as we cannot recreate
our system at once expedience which are
effective are essential to meet present
conditions. The main thing is to have
securities available for the additional
currency which are so large in amount
and so easy to be held or obtained that
the control or cornering Of them is I'M
possible. The bill under consideration
accompllshes this result.
This legislation should be supple
mented by a commission. l do not mean
a commission Of experts, so-called. but
commission composed of the joint com
mittees OF the two Houses OF Congress
l have little faith in commissions Sc
4-H a.
work for the National legislature
Il think We should strengthen the po-
sition OF the Comptroller OF Currency
SO long as the government is in the
banking business his functions are as
important as those Of any officer in the
government. The position requires a man
Of frst-class ability. training. and ex-
perience. When he demonstrates this
upon the national platform his services
are required for life positions at large
salaries by the great financial institu-
tons Of the country.
Raise COmptrOIIer's Pay,
The Comptroller Of Currency should
have Cabinet pay and a term Of Office
dependent upon changes OF administra-
ton. The government having secured
the best available talent. should be able
to retain II by the permanency and dig
nifty Of the Office. even though its salary
was far below what a private corpora
ton would gladly give. The number
Of bank examiners should be increased
very largely. and their compensation be
fixed salary, instead OF fees. believe
there are now eighty. and It is impossible
for that number, however. competent or
well intentiOned, 20 make the frequent
examinations necessary TO keep their
fingers upon the 600 national banks.
i think the commission | havo sug-
gested should provide some method by
which the Secretary OF the Treasury. the
Comptroller Of the Currency. and the
Treasurer OF the United states should be
brought IN intimate contact with a board
selected by the national banks and pos
sessing supervisory and advisory powers. |
with some executive responsibilities. |
which might concentrate the banking
power OF the country for the prevention |
OF panics, and also for the protection OF |
depositOrs, stockholders. and the public |
against badly or corruptly managed in |
stitutions. This would meet in "A limited
way the duties Of a central bank without /
its powers
Would Increase Reserves.
Il agree with tia Senator from Ala
H
amount Of the reserves kept in the coun- !
try banks, and that they should have the
privilege of keeping part OF them In
bonds, which could be used for emer-
gency currency I believe il would be q !
hazardous experiment for the govern |
ment to guarantee deposits The effect
upon State banks. trust companies. and
savings banks would be disastrous They
could not survive the competition Of ma !
uonal banks with the government stand !
ing sponsor for their deposits Il would I
eliminate the sense Of responsibility now
resting upon officers and directors. II
would place a premium upon incompe-
tency and carelessneSs. II would penalize !
banks wisely. honestly, and efficiently
managed by taxing them TO raise a fund /
10 pay the debts of those which fail /
through bad or dishonest officiels.
L believe this bill. amended along the 1
line Of its original plan and design by the /
suggestions which the debate has evolved /
Will accomplish the present purpose Of re-
storing confidence. preventing and mini /
mizing panics and meeting emergencies
until a full and complete system of our
banking and currency can be perfected. - |