New-York tribune., 1908-07-10
STATE BANKERS MEET
LEX. GILBERT SPEAhS-
Suggestions for Currency Reform
fHrich-Vreeland Bill and Crops.
TBr Telegraph to The Tribune ]

80 \ Y, July s-when Alexander Gil
rssident Of the New York Clearing house
.to,,on said in his address to-day al uie NC"
As cate Bankers Association conNenoioh' a. 'l.
foi T--onteuac We promised the eiecuoh VI
Botei ~ % the Presidency which will guarantee
SCI oo,,le the continuance of wise adIninis'ia-
70 - nublc affairs there was an outVuist =.
nv. ,,,stic cheering that told in no unniea.
e - the political sentiment OF the oa"h's -"
..-ests Of the Empire state. s.a.o banking
bsnA ter ? total capital. surplus and depos,s
ooo 200 aIe gathered here for their -
OF ', '- meeting and FROM current ihoicAuonS -
ann"~I - mis- convention would be the most sue
loohs rev held by the association. ooth IN po4i'
~ members ana I'i'1'0s
tanned sao ovar 70 routine work
s rerorts by the president Chafies h'
,-.-rsn. bv the secretary e o. Eloreose' anu -
.ossurer NJ S Sanford and TO addresses ~
the q c-t,he-t and James A Emery, while to-
AieA ss-esses will be made by Joseph l. isi
hO.'' ,oa-nresident of the Commercial Na'io"a.
", % chicago, and by William H. 'orv ~, -
Bank % o4icers for the coming year VIII De
- - tomorrow and ii is understooo 'Ne ~
elected ,++aa which failed TO make its report
inalihs - ,ov,e either Alexander Gilbert or the
'o-O@. ,aoe-president. z. s. Tent, for tue pieS'
pres g. s,,cceed Charles Elliot Warren
teno3' ,t convention is of especial interest 10
lne ,,,g and general business community, as
me as. large meeting of the New YORK state
BENG toe the stringency Of 1907 1t offers an op-
ot. oAune for the exchange OF views reearuins t.e
poi'1- po5 effects Of that disturbance ana gives 'e
s osIse the chance 10 exchange ideas ana susses-
p .b.t eventually may serve as uhe iouno
tons lS ,-,ent Of q system that will check
for 'he - q, snecuation and general business
The e eAoess -oon,v responsible for last years up
that we're hsAi'
hesvai ..suass to-day said that only
MI. OHYo- Oo-ott,ely were killed or wounded IN
yoF lastf October.
the g1ea' = -,,,rsed we're the road 10 recoV-
many u .,-.a5 ont that great resources hau
cry - .r,,a,red and that nothing conid hoiu inc
MOI " - hact except its own excesses. "hi0h ne
e0u.'1 re the cause Of the recent u-s'o' g.
salo - the past He said that pahIc was
the psnics oi - +,Dess system and that what was
disease % Not more currency. but some piece oi
feeueu acbinerv that would enable the oahhs u
osnf"e ,.-ger supply Of banking ereoi'' oi 10
CNe, Clea'e hold IN check and graduahS reoN0e '''
.-.stnr and over-sPe' A.. ,,,,,,,s ten
naa-he the trouble Of 1907 had its beginning ten
he sHIu -, a great wave Of corporation ma
year, s- this country. resulting In the OF
hI1 - NJ many large corporations tne Aoi4h
q numerous trust companies 10 hnan0e - -
%" o.,on of hundreds Of millions OF seeuii"
=. - heir distribution largely through ,nese He"l,
So gu ,one,-ed institutions. huge 1nnauoh VI
formed 80 liabilities snd the injection into
pam -. ufa of a vast amount of over-capital-
oU' an +hese things combined tended TO ere
70 .,.c,lstive spirit among the people gather
1,s force with years. and finally culiiia'eu III 'e
wreck Of 1901
- v5tb q currency system that would have
s-no,5As automatically 10 the business needs OF
S .,-r he thought there still would have
- +hs+ tremendous pressure for bank credit as
sr,. of over-trading and over-speculation
While other nations he pointed out suffered rom "
IN eYcess Of speculative spirit, they old not oriiI
,,-o manic owing TO their central banking system
saraa a7fiE
o,s currency requirements and 10 their ability to
,nr,r a brake when the speculative pulse began
10 beat too fast.
NJ Gilbert believes the country needs a unified
system system with its bank OF discount. that
viii make possible to regulate the interest rate
| and to use the banking reserve in an emergency
and Re presented the following suggestions:
F1rst-Thst the country can have relief from
currency measure the tax upon Whicn Is SO hlsn
that banks VIII find no inducSment TO take out
currency when H is needed
Second-That an asset currency, convertible into
gold al the option OF the holder with a guaranty
fund, q per cent reserve and adequate redeTnp-
ton facilities is safe a currency secured by
golo and safer and more economical than cur
Third-That commission composed OF members
/ Of Congress. bankers and business men well Sc
central bank thai could be operated in harmony
with he present banking system and which. our
| ing the lifetime Of the United States per cent
bonds now held as security for our bank circula-
i uuL- c0uIo sraduaiy introduce new currency
system better adapted TO the business needs Of the
i country
Mr. Gilbert believes. do most Of the bankers
here. that there is danger Of the AldrichVreeland
ol breaking down when pet the test Of the first
u crop moving pressure for currency.
ne does not believe that bankers will pay "a per
cent Tor money and lend il for per unless the
\ erect necessity for doing exists, and he sug-
II eesH that the new currency law should be
amended, making the tax currency per
cent for the first three months. followed by
monthly Increase This would allow the banks
1 small profit in the three months crop moving
i time
II PRAlsES NEW BANKING LAWS.
III MI Warren, the president OF the association. in
II N anhusi address covered its growth and pros
II f7iH ana PORTED out the benefits derived by the
e7"e'a pubic from its aggressive action on mat
II - anecing the banking situation. He congratu-
n avg Ciark Williams the Superintendent Of Bank
% Oh lie splendid results achieved by his office,
II NHHe ne called attention TO the good work OF the
''' legislature in enactng laws working for bank
t reform, especially the law designed to prevent
| psyHeni Of large receivers fees.
II NJ warren believes there better bank as
!" nan ihe paper II the solvent manufacturer,
1 He points with pleasure the fact that. though
AioTlch-freeland bin is not ideal measure, il
II - gooo feature in its authorization of CONNER
"a paper as collateral for emergency currency
He iefuied the idea that the New York banks did
~ Ahance the interior at the time Of the panic.