The Sentinel=record., 1909-10-06
TOO ESTABLISH CENTRALBANK PEOPLE OF THE COUNTRY MAY BE sTocKHoLpERs IN UNCLE
 sAM's NEW GAME.
Incident is for the Purpose of Pre-. venting Panic condtions, Such
 as Existed During Recent q, Money Trouble.

Washington. iOct. 5--The coming congress must meet a situation born ! of the panic of 1907, when the issue of clearing house certificates by the government to supply sufficient currency to meet the demands of the business interests of the country was necessary although Americas doffers were overflowing with gold.
 The temporary legislation enacted during that critical period must either be supplemanted or enacted into permanent law and foremost among the various projects that nave been advanced as a proper solution or the governments problem stands the proposed central national bank.
 II is the common belief that 1t will form the basis of the curative legis- lation to be recommended by the monetary commission. as President Taft in his recent Boston speech signifed his own favorable d,sposi- ton toward the project.
 "A bank Of the people and for the people" is the definition of this insti- tuition, made by George M Reynolds. president of the American Bankers association In his Chicago speech He pointed out that the people were to be the stockholders, for any one would be privileged to buy the bank stock just as he might agovernment bond, @ Political control of the great bank would be made at least extremely diff ficut by the life appointment of the officers. Integrity of operation would be assured by a board of supervisors appointed by the president the secre. tary of the treasury, and the comp troller of the currency, Subject to the approval of the senatel for al terante terms of at least years to bridge over political mutations.
 Thus would be met the objections founded upon the history of the old United States bank. that the Cen tral bank might be prostituted to pc litical uses and be made a powerful engine for the perpetuation in power of one party.
 The single purpose of this projected bank would be to safeguard the busi- ness interests of the people in their private relations. If there were need for more money for business purposea the banfk could supply it by notes. and if there were plethora in dull times these notes would be withdrawn rapidly.
 Governmental assistance to the in stitution would be limited to the de- posit with the central bank of all government funds now in the nation. al banks. The existing banks. it is hoped, would find their compensation for the loss of these funds in being relieved from their present butden of carrying the whole weight of re- sponsibility for increases in the cir NuotiiiS ntutulii, GHu III Ldtt lHdt the central institution would not re. ceive deposits ffosn individuals
 As to now the business man is to benefit by q central bank, the state ment is made that the project in- ciudes a provision for the acceptance of good commercial paper as d basis for the issue Of money Such paper would represent actual transactions between solvent concerns-all short time credlts--and sure of redemp- ton whenever the transaction was concluded There would be a reason. able coin reserve to maintain equilib- rum,
 That this plan will meet with pro longed opposition when laid before congress cannot be doubted. although the administration desires the mat Her regarded as non-political
 At the recent bankers convention in Chicago. many of the bank officers re- garded the measure as the opening wedge for the destruction nf the most