New-York tribune., 1908-01-28
DINNER OF BANKERS
THE STATE ASSOtIATION.
Currency on Commercial Paper Id
rocoted bu 4ierander Gilbert.


60, Of tho NeVy York State Bankers Asso-
r;a-;on AT the Waldorf last night. Nlcholas
Murray Butler president OF Columbia UnlNef-
sitv. said that New York City was unrepresenteo
on the floor of the House OF Representatives or
the senate Of the United States. He mace d
riee for the city. saying that while Ne" horh
had its full constitutional representation IL was
in point of fact. absolutely without voice on the
hoor of Congress
s,,-a;se-+ I2,,-ler's words were greeted with en-
sausiastic applause by a large audience which
hea rreviouslv gone wild with enthusiasm when
Alexander Gilbert president of the Market ana
Fulton National Bank. and of the Ciearlhg
House Association. called j Pierpont Morgan an
uncrowned king Of finance and praised him for
his aid 10 the banking institutions that were in
distress East fall.
Mr. Gilbert opened the speecllnaking by call
ing for a Toast to THE President of the United
States, The orchestra broke into the strains
of The Star Spangled Banner" and the audi
ence. in dead silence rose While the national
air was played.
When the music stopped every one sat down
and Mr. Gilbert said Il thank you for TINS
srJendjd delnonstrat tiCn. 1t shows that this as
soeiation has respect for the high office of the
President of the United States. Now i ask you
to drink guests in the gaiierY-tne
ladies"
al that. The guests rosa and three cheers were
given with a will This demonstration was re-
r,es4ed and exceeded few minutes later when
MI Gilbert turning 10 Mr.. Morgan who sat
near him al the guests table, spoke OF MS part
in restoring confidence last fall
CENTRAL BANK FAVORED.
Mr. Gilbert d1xelt at length currency re-
form, pleading for a practical method lie e&-
pressed himself as in favor Of central BANK
but said that If that could not be obtained ne
hoped there would al least be no attempt 10
base emergency currency measures on bond pur-
chases by the banks Of issue. He said in intro
ducing President Butler:
similar occasion. ! incidentally remarked that. We
fna1oe 5.' aid not jani; then that time woid
SO quickly give II proeI. said We WetS pLtoill5 I ~
compensation is always iH operation II IS interest
to how uneITingiy md anifoTIiy This i law
months IA lts upb:il!alS PiocesS .l ~ iTS r f
forts II establish and maintain an equilibrium
and remember that story OF the men who went
OUT 10 build The Tower oI Babel 4cu lelllelllDes
n building. beyond which i not safe ioT
them 10 20: and y0u remember now they kept
building higher and higher and higher until event
ually Ihey weIe covered with CONFUSION. now,
haven't we passed throusn a similar experience l
during the last Iweise months? A year or 50 ago
IN .{ettl e ter,2fa5 " y,s ma kin, money and
spenGiag II Just q freely Merchants ana manu- ma ~
5arTs 10 borrow r16Iasv 70 enlarge Heir plants and
- Increase :heiT TIercil.rdist: and YOU bankers
to restrain te tendeney 81 your customers 70 D2T-
te1t on reaching out and Teachns out % ger lnoIe
- great ffonls lfoll tlt Eled- NpI-Ile u ou9i-
ness that was being done
trouble There is siv5sys primary cause There
are one hundred o. more contributing causes, and,
precipitaling cause Is TIE weak cause ia insti-
tuition, and The weak cause was Wall Street or the
Stock Exchange, with Is huge mass OF loans that
could not provide for. When there is sreat
corporation the weak place that gives out
iss7 TSe uesEssf sof ws5 TTaT Street Exc~
ne for saving Wall Street; mean the stock EN-
ruinous interest rates. When the load
heavy 70, carry It had 10 give way Ny friends, al
Q NV York always are-ali this would have
bbepesd beTn If President Roosevelt ha' never been
would not for q moment say anything to dim
distingui. hed guest, Mr.. Morgan. ! am willing to
ssolroefCi leader but Sir Morgan viii Join with
me. am sure. when say 10 You that if he is 10
many otaeT BANKERS il He% York Who are wei
believe with my friend Nj Nash that the
4eT9 rotT9t55s7zr'7i5e the 80 maj for the last
half century the great central banks Of Europe
rs ofrorteg viii f,ioe5csi ccnSrions 81 fhSf fhe
system could not be worked we'll in this
Try il IS in the Old World.
Ne can have, then let US have workable eraer-
Se1cy Currency DO not ask US to buy bonds IN
tire of panic Do ask to borrow money.
sl9e and spend il and get SO worth Of relief. If
&c have emergency currency 90 not ask
Fsrse - or5e~ a. ne nav - Ssa "a he. o - eS III S,r -
need. because bonds WiSeSt invest
rlent fer commercial banks. If are 10 have
emergency currency, let Us have it on hank
assets, whether they are bonds or commercial
paper.
Let Us ooufne our emergency currency issue to
the central reserve cities and Jet Us make it
lawful every clearing house centre in the courl-
central reserve cs+ies If fieL- ~ r w. 81 45 i@,-ig ne
Law 20 make The basis Of emergency currency
commercial paper. established the same prnci-
PIE sho Plan Iaat The New GCTk Clearing House
Issues such certificates. with . per cent margin
\ end the guarantee of the Clearing House banks
NJ behind IL. and let the Controller q Currency
be authorized to receive those loan certificates as
collateral for an emergency currency. then
would have IDEAL emergency clIr-encyore thar
fetreo- one that would never result in imitation.
one that would be safe anything human
President Butler had his subject Bills
PAYABLE He told Mr.. Gilbert that he picked
that as his topic because he had had a large
experience. He said little on his direct sub
tect, however. and soon began defence of New
York City telling of the great problems IL
had 10 solve unaided. He was frequently an
plauded, and there were loud cries of Good,
Goodt" when he said that the matter of the
city's representation in the Congress was a
bin that should at once be called in and marked
Paid"
TRIBUTE TO MORRIS K JESUP
Nr. Butler, without referring to him by name
paid tribute the late Morris X Jesup
saying that his funeral had gathered men
really representative Of New York. There was
much applause when President Butler said that