Arizona republican., 1908-03-11

enacting that after a certain date banks should keep increasing amounts of ! their reserves against deposits and cir culating notes in coin; as this in- creased the bonds now held for secur- ity being released. This is practically the Indianapolis plan. which has won wide acceptance. Gold coin can easily be obtained. There is twelve hundred millions of dollars of it in the country today, with power to increase this. since our exports exceed our imports. Details should be left, to the future. whether the European plan of one cen tral bank or the Canadian plan of es- tablishing a point of redemption in each district be adopted. or an organi- zation of all national banks be made to coordinate the system and have au- thOrity in emergency to authorize an extension of note Ssue as central Eu- ropean banks have under government authority, all our banks to be respon- sible pro rata for such additional issues All these and other secondary ques- tions are not now in 2rder. Today's duty is simply to nfakeA beginning to- ward passing our b5 hiking system upon gold instead of government bonds lia- ble to fluctuation under exceptional conditions.
 To reach proper banking we need no revolution. We should make haste slowly. All our progress should be tentative. avoiding anything like shock to our present system so fraught with danger. and rapidly assuming propor- tiOns that threaten recurrent disasters
 We only need to turn our faces and keep them in the right direction by be- ginning to inject more gold directly into our present system little by little until, in the fulmess Of time. we can establish a banking system complete in itself such as that which the leading nations and even Canada now so hap oily possess.
 When we at last become fully pre- pared for the substitution of asser for bond secured currency, this can easily be accomplished without causing even q ripple of disturbance. thus relieving the government from all part in our banking. as other governments are re- lieved under their systems which work so admirably.
 Our present plan is primarily an in strument designed to strengthen pub lie credit and scarcely deserves to rank as banking system at all. Pub lie credit no longer neecs this sup port. Let us threfore. gradually. not hastily but slowly. very slowly. frightening neither the most ignorant nor the most timid. transform it into the instrument which the country so imperatively needs. if 1t is to be se- cure. as other countries are, against financial cataclysms. either in peace or in war.
 Men in public life who keep before them this important task will live long in the grateful memories of their future cOuntrymen. for our present plan is one of the greatest of mistakes. pard enable only because made under the pressing conditions surrounding the republic after the civil war
 We read that in the senate recently. Senator Lodge. one. of it's leading members. declared that bank circula- ton based upon gold reserves and complete extinction of all government credit are at this moment counsels of perfection This is true indeed. Sen ator Lodge has all the leading author tiles upon banking affairs known to the writer in agreement with him. The statesmen of today. when dealing with the subject. will have no excuse to offer if they fail to turn the coun- try in the direction of this perfection. This is but one right path