Goldsboro semi-weekly argus., 1909-10-09
ISSUE .'FORl CONGRESS
Solution of Goverrm ,nt's
Problem For National
Central Bank.
Board of Supervisors to Be Appointed
by the1 President, Secretary of
Treasury and Comptroller
of the Currency.

coming Congress must meet situation
born of the panic of 1907 when the
ssues of clearing house certificates
oy the government to supply sufficient
currency to meet the demands of the
business interests Of the country was
necessary, although Americas Golfers
we're overf1owing with gold.
Foremost among the various prof.
sets that have been advanced as a
proper solution of the governments
problem stands the proposed national
central bank.
AS it is the common belief that it
will form the basis of the curative
.egislation to be recommended by the
monetary commission, and because
President Taft, in his recent Boston
speech, signified his own favorable
disposition towards the project, it is
is believed to be in the minds of the
President and the eighteen members
of the monetary commission when
they refer to the central bank,
"a bank of the people and for the
people," is the definition of this insti-
tuition made by George H. Reynolds,
president of the American makers
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 a government bond.
A small interest on such an invest
ment would be guaranteed by the gov
ernment; any earnings more than suf-
f1cient to pay the guaranteed interest
would be shared by the government
and by the stockholders.
Political control of the great ban.
would be made extremely difficult, by
the life appointment of the officers.
sured by board of supervisors, ap-
pointed by the President, the Secre-
tary of the Treasury and the Comp
trollers Of the Currency (subject to
the approval of the Senate) for alter
nate terms of at least eight years to
bridge over political mutations.
1t is not intended that the central
bank should support the credit of the
nation. If the national government
needs funds, it must continue to bor-
row money by sale of bonds.
The single purpose of the bank
would be to safeguard the business in
erests of the people in their private
elatfons. II there were need for
more money for business purposes,
He bank would supply it by notes,
md if there were plethora, in dull
ines, those notes would be with
lrawn rapidly.
Governmental assistance to the in
stitution would be limited to the de-
ernment funds now III national banks.
There would be no interference with
the most profitable feature of the
banking business for the central insti-
tuition would not receive deposits from
individuals.
The question as to how the business
man is to be benefited by centra
bank is enough to be answered by the
statement that the project would in
clude a provision for the acceptance
of good commercial paper as a basis
for the issue of money. Such paper
would represent actual transaction.
| betkeen solvent concerns-al1 shor
time credits-and sure to be redeemed
the transaction-the sale and deliv
ery-was concluded.
Such, in brief, is q bare outline o
| the plan, which with manifold details
/ probably will be laid before Congress
as an accompaniment of the report @
the national monetary commission
That it will meet with opposition can
not be doubted, and this, too. in spit
of the best efforts of the administra
ton to have the batter regarded a
non-political.
The suggestion of central bank a
ready has agitated deeply the gres
banking interests, the line of divisio
beginning at the last Bankers Cor
vention at Chicago, Many of the ban
officers regarded the project with dee
. suspicion. They were told that 4
encroachment upon their bushes
was contemplated beyond the will
. drawa1 from their vaults Of the go
= ernments funds. but they regarde
+ the measure as the opening wedge fl
Ithe destruction of the most lucratiV
portion of their business and We've
! with anything but favor the pls
whereby the government bank was
= enter into competition for the emo
NOUS discount operations which ga
them very great influence in the i
= dustries of the country.
r Possibly their objections can, in
n measure, be weakened by a recour
= to some other means of securing
s basis for their circulating notes of t
y neutral bank than commercial pap,
D such as an enlarged reserve of &C
" and silver, or even gilt-edged mo-
]. cages on real property. But the
lie very suggestions probably would c
forth a new army of enemies, to co
in bat the proposition.
n 1t may be that the existing pol
r cal parties will be divided on t
IL great question and that there will