The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1908-07-31
CONVENTION CLOSED WITH
ELECTION OF OFFICERS
Closing Session Of the Bankers the Most
Interesting Of the Two Held in CITY.

a8 A sSseAys 1
From Wednesdays Daily.
Montana bankers listened to one 8
the most instructive talks on curren
cy reform ever given in this state yes
terday during the closing session o
the fifth annual convention which has
been In session in Billings for thu
past two days.
George p. Roberts, president Of thu
Commercial National bank Of Chica
60, delivered the principal address d
the day, taking as his subject, .'The
Lesson Of the Panic He outlined in
q most comprehensive manner his
plan for the establishment Of a Cen.
trail Bank Of Issue and. at the conclu'
sion Of his talk the association en-
dorsed his general plan for the estab.
lishment Of such q bank.
Although the room was close, the
bankers gave Mr.. Roberts their undi.
vided attention and seemed eager to
catch every word of his discourse.
Owing to an automobile accident in
which Harry Yaeger, assistant cashier
Of the First National bank Of Lewis
town, was injured, the gentleman was
unable to attend the convention and
consequently he was not present to
deliver the address assigned to him.
Senator Dixon, Congressman Pray and
William Barrett Ridgely were also I'M
able to attend the convention, and as
g result OF their addresses not being
delivered, yesterdays closing session
was q short one.
Mr.. Roberts Review.
Mr.. Roberts reviewed the financial
storm Of last year In q clear and con
else manner recounted the evil ef-
fects Of the panic, which he declared
disclosed the inadequacy Of our pres
ent currency system to meet such
crisises. He showed the many defects
in the currency system and declared
the greatest defect in the present sys-
TEN is that there is no way Of readily
creating the higher form Of credit,
which to be available always must be
q credit currency.
He said that 1t was a part OF the
bankers province to limit the effects
Of financial depression, and II there
was ever q time when a good borrow
er needs credit and should not be de-
MED 1t, It is the time Of a commercial
crisis. In the United States, he de-
clared that the banks were unable to
give this credit, because they them
selves were in the very storm center.
Re-activity and expansion together, a
similar condition existing all over the
world, he declared was responsible for
the panic Of last year.
He said that the 500, 100000 in gold
shipped to this country brought de-
sired relief but it cost millions in re-
duced prices of produce to get that
gold.
He said that just the same as rail-
roads must have idle cars during the
dull months Of the year in order to
meet the demand during the busy
months, so must this nation have idle
money eight months Of the year to
meet the demand Of the other four,
when crops are being moved and when
the producers Of the country need
money to further their operations.
Advocated a Central Bank.
In advocating a central bank Of
issue Mr.. Roberts declared that. such
an establishment would create a credit
currency based on the highest form Of
commercial currency. The defects In
herent in every bond secured circula-
tion would be obviated. he said. He
touched on the Aldrich-Vreeland bill
lightly and explained why government
bonds q the United States sold at a
premium while consuls OF other coun-
tries are sold at less than par
He reviewed the history Of the old
United States bank, dwelling on the
eneGtss y political conditions at the
time Of fs existence and Of its de
fects:as ea1 III zsi-s
T. detailing = 4 plan for the establish
ment IS . central bank of issue Mr..
Roberts said:
Suppose we form such an institu-
ton by placing the stock among the
existing banks on the basis Of their
capital. II we made the capital $780,
100000 and apportioned 1t to the ma
tional banks alone, they would have
to pay in about ten per cent Of their
capital, but II the state banks came
in, the percentage would be CORE
spondingly reduced. Provide that no
bank should vote more than its quota.
which would remove any inducement
to accumulate the stock.
Elect q board OF directors by terri
torial districts SC that every section
of the country would be represented
by director OF its own choosing: it
is 2 practical certainty that at least