New-York tribune., 1909-09-15
REYNOLDS FOR CENTRAL BANK

Earlier in the day in hts annual address Presi-
dent George N. Reynolds declared in favor OF a
central bank with capitalization OF not less than
SlO0,O0o.0oO a OF avoiding financial dis
asters similar 10 the panic OF 1901 He said, in part:
While the last year has not brought great
capital invested or for labor performed as We
could have hoped, stiIl blessings have been show
passed. and where short time ago there was
st nes.lauoh ION IN business and doubt We now ind ac-
With the tariff question settled, thus remoy-
ness during the last year, and with the latent en-
fitv We viii fplg II p5 nov - 5uliy sEakened to ae-
lgenee and accompanied BY frugslity the part
ol our people, soon come into a fun fruition Of
g. our hopes through speedy return normal con-
believe You win agree with me that much Of
10 our Currency 9i aSs panic Is properly chargeable
the country were unable to expand be bee banks
tsplay ~ enough or 20 the extent necessary to meet
had TO go into the worlds marts and buy gold in
orS r aiee "a quantities for immediate delivery in
store conhoence and assist industries depleted
tries OF Europe to such an extent that eonsSe1ne
VS. vs. shaken abroad and their business was seri-
CENTRAL BANK ADVOCATED
AS result OF a study OF the financial systems
o. ne various countries Of the world ana the
a blo"leage e gained from actual experience bust
nsa, S We M NAY & secure system Of currency that win
business and which will al the same lime CONS a1e
lnand the confidence and respect OF the entire
nave established in this country central hank
1 VIII power power or note issue to be operated under
governmental supervision control
,,s telIal . 6ank organized under charter which
Intelligent management, would 20 a long wsv si
toward solving our financial problems First Il
lnnst De A central bank IN fact well as in name
ahd It's powers and functions should be restricted
15 ie esqs of business its plan OF organization
atoh snouid be such that II would auto
tatlcaIly support the needs OF and be Tie servant
Be large enough command respect and confi-
oence-say not less than slOOoOO06 Whether The
ha ctfRec a-sl.,a
tlonal banks of the country or sold TO The pubIIc
, 51@ = s1shshtes OF small dividend By the gov
snare n the profits above the amount OF that
believe the latter plan would be the betfer s
5 N.5io 90 Away very largely with the feeling that
nenent ana profit Of the bsnks OF the country
bankers BANK and oa y PeoRes rather a. than
y assist IN solving the political problem which
cult % solution than Is the economic problem
=, Nhlle such bank should be the fiscal agent OF
deposited with Il. the bank should not be given
should be done 81 the government ssseis s d tisI M
the people IN an individual capacity. II would moi
control over central bank and az ne sane t@e Se
=. .oN , ne ans 70 1e used by those who direct
The bank, IN addition TO government funds SHOULD
The three central reserve cities acting a psss esa IN
oeposiiory for banks in those cities just as they
lar reserse cities This would rot AFFECT the reia
Ions -, & nqe essstns beiHesn ihs banks in the
central bank 81 SIS operation should no. a.
The beginning az least interfere with fhs f,ncfiors
~ tne rstional hanks q the country. 8nd the only
sr@.t - ~ sonpflon of ihe plan suggest would
he 70 take away from The national hanks an -.
fe fpncs of The sOFeTuulent now Deposited WITH
fhfrn. Ehe charter under which the hank v,o,,f1
tt orearized should provide that the bank rUo,,i5
have branches N each - the cities where there ss
rovf filb-freasurr sfld in such other rs.ies -.
% vopo be necessary 70 give an adequate service 10
1le vioie COUNTY, since the bank vroid be sio
With all srb-ffeaf5ries N w away
SHORT TIME CREDIT.
fef. tlre we az agree that a short time credit
cTeotfo IN The actual rondl.ct Of bssn.ss ,,l,tap
represents reai transaction between Two or more
tent conc~fns and which bears solvent frdnrsA
spenf In addition is thu credit which is mo-, a.
sa'Hbio as II Is TIE credit which will be nrst rs
oeefneQ sinee completion of the trans.c,,on
,hfoesh ,, which was created automatically retires
wsud then ressrse. shs aiscouats Of the csnsrs,