The Norfolk weekly news-journal. (Norfolk, Neb.) 1900-19??, 1908-04-24

national resources and abundant
| streams of revenue gushed forth; he
touched the dead corpse OF financial
credit and II sprang upon It's feet"
The charter of the first bank expir
ed In 1911, when the republicans were
In power, with Madison president and
Gallatin secretary OF the treasury.
Gnllatin was the one man Of conse.
quonCc in the republican party who
knew anything about finance. Madi-
son had opposed the original charter,
but Gallatn brought him to his view,
an the administration favored an ex.
tension OF the charter Hut the re.
publican party, as party hated every
thing with which the name of Hamil.
ton was associated and the charter
was denied
The currency Immediately FCll into
disorder. There had been state banks
of issue but the Bank of the United
States had kept them under restraint
| by constantly sending their notes
home for redemption II performed
through it's branches over the country
practically the same functions that the
Suffolk bank performed in New Eng
land at a later day. With its domi-
mating influence removed, state bank
issues multiplied without any ade-
Quate regulation or supervision, specie
payments were soon suspended and
the country floundered in a mire of
irredeemable currency.
Gallatin's views were so completely
indicated. the demonstration was so
convincing that in Madison second
administration the republican party
reversed itself and chartered the Sec
ond Bank of the United States.
shall not take time to review Jack
sons war on this bank but it signifies
something as to the position Of the
bank in popular esteem that "
Jackson began his attack on the bcrH
four of the six members of his cabinet
were opposed TO the policy and he had
| to remove two secretaries of the treas
ury in order to get one who would
carry out his will. And unquestion-
ably much OF the antagonism to the
bank was fomented by the rival state
banks because of what they called it's
unfriendly action in constantly send
ing their notes home for redemption;
in other words, for the very wholesome
restraint which 1t placed upon them.
Time For Re-establishment.
But passing from all that, | would
not advocate now the re-eStablish-
ment of central bank on those lines,
or as an Independent institution. | be.
| lieve however that our existing sys-
| TEN of individual banks might be un.
| flied and strengthened and made more
serviceable to the public, by forming
a central organization: call it central
bank or agency or clearing house or
what you like in which they would all
be interested and through which they
might perform certain functions useful
to themselves and to the public which
as individual banks they are moi so
well qualified to perform.
In my Judgment this form of CO.
operation, developed voluntarily and
successfully in the clearing houses,
suggests the natural evolution by
which our banking system may be per-
fected. Let us have a central organ
| ization of all the banks which will do
for each under provisions of law, what
| the Chicago clearing house does for
each of its members and at the same
time give the public and the govern.
| ment and the business interests of the
country the service that the state
banks of Europe render.
Benefits.
A central bank would economic the
moneyed capital of this country.
Among the measures of so.called mon
etary reform pending in Washington
are several dozen to compel country
banks to carry larger reserves. You
would think that money did not cost
anything. They go upon the theory
that nobody but the bankers will pay
the cost of locking up the country
capital. What percentage of reserve
! do you think the country banks of
Great Britain, and the city banks too,
are required to keep behind their de-
posts; there is no legal requirement
at all and as matter of fact they keep
their reserves in the Bank of England
and depend upon it for money when
they need it. How much gold do you
think there was in the Bank of Eng
land last October and November, as
the final reserve for the whole finan,
cial and commercial system Of Ell.
rope? About 1855, 100000. How much
gold do YOU think there was in the
treasury of the United States in DC.
tober and November last, as a basis
for gold certificates and greenbacks
in circulation? $900000,000. And in
the United States from the Atlantic to
the Pacific coast payments were sus.
pended and London was sending gold
to New York
Gentlemen Isn't it apparent that
it takes more money to fortify each
one of twenty thousand banks against
every possible emergency, than II
would take by concentrating the re
serves in one strong, central institu
ton, which by means of its capita
and its credit could take care of any
possible emergency?
Drift of the Times.
In conclusion, ii ought to count fol-
something that one by one all the 9th
er important countries of the WORLD
have come TO the central bank, anC
that none has ever changed from it
and nowhere is there any disposition