The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1908-12-15
NJ ONEY PROBLEM.
COULD Be SOLVED
BY CENTRAL BANK
GEO. E. ROBERTS.
FORMER DIRECTOR OF v. 8. MINT
MAKES STRONG ADDRESS BE-
FORE BANKERS cLUB-o. H..
BARBOUR NEW PRESIDENT
GEO. E. ROBERTS.

A central bank OF issue, on the plan
OF the state banks OF the European
countries, is the remedy which George
K. Roberts, formerly director OF the
United States mint and now president
of the Commercial National bank Oh
Chicago, proposed as solution or the
currency problem in his address be-
fore the Bankers club. In the Hotel
Cadillac. Monday evening. He was re-
outlined his plan.
The United States has the largest
and most Intellectual gold reserve ~
the world, he said, and its ineffective
ness 10 withstand the strain OF panic
was shown last year. He declared
that a great central bank acting as the
depository and fiscal agent or the gov
eminent, with ample note-issuing
power. could strengthen the banks Of
the country at all times.
The panic of 1907 had been foretold
by financial experts, Mr.. Roberts SAID.
as something sure to happen. but no
one had expected the country 70 come
out Of il so well. When the time Of
stress came. every bank was thrown
on It's own resources and the natural
impulse OF each was TO hoard It's cash
and call in its loans, which added tn
the general distress, and this with a
gold reserve OF $500 100000 and $780,
100000 more OF gold imported to as
sist in staying the panic.
TO prevent a further money famine
the speaker urged that some means
must be had OF issuing money against
the natural assets OF the banks ana
he preferred the central bank OF issue
TO the plan OF having all the banhs
issue notes against their assets. He
would nave "a $l00.000.000 bank, the
stock TO be taken up by the national
banks and the directors elected by
sections of the country. This would
take IL out OF politics.
The central bank should not make
loans or receive deposits. in his opin
ion, but deal only with the banks OF
the country Previous objection to a
great central bank had been due 10 the
erroneous plan of the former United
States bank, which competed with all
other banks and had special privileges
from the government In so doing.
II NJ. Zimmerman. Michigan's bank
ing commissioner, followed Mr.. Rob
erts and discussed Michigan matters
thanking the bankers for the help they
had given him.
Postmaster Homer Warren. in light
vein. reminded the brethren or the
financial world that there are others.
He thought the popular demand FL
postal savings banks should be met.
President George T. Moody. of tht
Board OF Commerce, also spoke. Johr
IL. Johnson. the retiring president
shandled the ceremonies in his usual
happy and tactful manner. The dinner
and decorations were fully up to the
famous Cadillac standard.
Rcsolut ions highly commendato:y o!
Col. Fred T. Rarnsworth, who retires
from the sccretaryship OF the club be
cause he has removed TO New York To
take the secretaryship OF the national
association OF bankers. were adopted
Col. Farnsworth had been secretary
OF the local organization for eight
Years His final report showed that II
now has a membership OF 223.
The new officers are: President
/ George II. Barbour: vice-president
Hamilton Dey; secretary.treasurer
/ John w. Staley: executive committee
members. Emory w. Clark and Charles
A. Dean.