The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-09-14
'BANkER IN FORCE
Every State Is Represented at
Chicago Convention.
Five Thousand Delegates At
tend Opening Session.
JOE CANNON TALKS.
He DeplOres Haste in the Bank
ing Legislation.
Practical Banking Questions
Discussed by Visitors.


Chicago, Sept. 14.-Delegates to the
thirty-f1fth annual convention of the
American Bankers association in the
opening session today had outlined
for their consideration a plan for the
organization of central bank with a
capitalization of not less than $780,
100000
The Central bank plan as a preven-
tive of a recurrence of the financial
disturbance of 1907, was outlined by
President George NJ. Reynolds in his
annual address. Under his plan such
bank would be the depository of the
government which, however, would
not have supervision or control of it's
affairs. Speaker Joseph G. Cannon,
who addressed the convention at the
close of the morning session, declared
that the law enacted after the panic
of 1907, the Vreeland-Aldrich act, was
not perfect, but had good results. He
said that when congress met it was be-
sieged with currency experts, each
doubling the orthodoxy of the other.
Il believe" said Speaker Cannon,
that the only fault of the enacted
law is that it only lasts six years. It
is not perfect, but it can be made per-
feet. If that law had been on the
statute books there would have never
been a suspension of business in 1907,
with its issuance of clearing house
certificates
Haste Is Harmful.
Continuing the speaker declared
that haste was harmful in legislation
and that the work of the monetary
commission in revising the currency
laws should be slow and careful. At
ter commenting on "czardom'' which
h IL
of the majority since the time of
Speaker Thomas B. Reed, Speaker
Cannon said:
'One of the greatest questions be-
fore us, is shall the country go in
debt for vast amounts. because this
or that set of people says SOP The
good roads people want 500, 900, 900;
the swamp land people nearly as
vote another s100,oO0,00o for the
waterways to improve our internal
waterways. e---t
I'm hundred years we will see it;
in so years we may. But We will
spend our money in a sensible way
for things that need doing first. 1
don't believe congress will ever bond
futurity for so. 100 or 200 million
dollars at the behest of these ad-
vocaters. 1 know I will never vote
for it,
At the meeting of the national as
sociation of supervisors of state
banks separately, Lawrence Q. Muir
ray. comptroller of the currency
plan for the cooperation of national
and state bank examiners.
Joint examination of banks, ma
tional and state, will work greatly to
the betterment m IT. Of ,rpan banking con-
"Co-operation in fact is absolutely
essential to the welfare of the banker
and the depositor. When rotten
ness is found in a bank let both the
national and the state examiners be
apprised of the fact
Governor Deneen of Illinois and
Joseph T. Talbert. president of the
Chicago Clearing House association,
welcomed the bankers to the state and
city. Colonel Robert ]. Lowry of At
lanta, Ga, former president or the as
ISOLATION, responded.
George NJ Reynolds of Chicago.
president of the association, delivered
his address.
Committee reports were presented.
The Presidents Address.
Assembled. as we are. at a time
when prosperity again smiles on our
country and our people arc at peace
with the world and among themselves,
I congratulate you upon the favorable
auspices under which the THIRTY fifth
annual convention of association be-
gins it's deliberations.
.'The panic of 1907 was probably the
most severe. one ever experienced i'll
this country, and since we were forced
into a period of financial confusion and
disaster to business at time when the
conditions of our country were
in such a healthy condition.
it is plain that there existed some grea
cause for such a sudden upheaval; and
since the causes have not as yet been
our felicitations upon the re-
turn to better conditions should be
tempered with conservatism and eau
tion until this has been accomplished.
THAT we are SO rapidly approaching
a more satisfactory condition is due not
so much to any change in our economic
ative powers given US by the richness
and fertility of the soil of our country.
F'o ra Central Bank.
'.As the result of a study of the fnan-
cial systems of the various countries of
the world and the knowledge gained
from actual experience in business of
some of the changes necessary in order
that We may secure a system of cur
rency that will meet all the require
and which will at the same. time com |
mand the confidence and respect of tie |
entire business world, am convlnce1 |
that we should have established in this |
a central bank with a capital
of 100 millions and with power of note
issue, to be operated under govern |
mental supervision or control.
I'm 1907 we had in the United |
States one billion seven hundred and |
eighty million dollars of gold coin, of |
which amount one billion one hun |
dred million dollars was held in the
treasury, yet we turned to Europe for |
assistance. with the result that the |
Bank of England alone furnished us /
directly and indirectly about one hun
dred million dollars of gold.