Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-10-06
Scheme Proposed by President
Reynolds Of American Bank
efS' Association Has Admin
iStration'S Endorsement.
TAFT AND ALDRlCH TO
URGE ITS ACCEPTANCE
Powerful Opposition Looked
, for Despite Varied and EIo-
Quent Arguments Furnished
by Panic of 1907.

JBy Morning journal Special Leased Wire1
Washington, Oct. 5,-One eloquent
fact, that with Golfers overflowing
with gold, America was obliged to APP
peal to Europe for relief in the panic
of 1907--is a strong point of the ar
gument that will be made to congress
by the advocates of a revision of the
monetary system of the country. Ac-
cording to the treasury statistics pro-
duced by George II. Reynolds, presi-
dent of the American Bankers asso-
citation, In the course Of his state
ment to that body, when the first
United States treasury held over one
hundred million dollars more gold
than the great national banks of Eng
land, Germany and France combined,
while circulating outside the treas
ury, among the national and state
banks and the people. was at least
twice the gold treasure held by all of
those great European banks Yet this
vast hoard in the United States was
entirely unavailable. The credit of
the national government stood unlrl-
paired. but the business interests of
the country were crippled for lack of
the currency which is their life blood.
and only q resort TO the isue Of clear
ing house certificates prevented the
o,f, n inn t,.Y,
tions than it did
Congress must meet this situation
i'm the near future, for the legisla-
tion that was enacted Il little over
year ago was but temporary in its
nature and must be either supplanted
or re-enacted into permanent law
This realization of the need for action
by the national legislature has served
TO direct attention to various pro-
ieets that have been advanced as
proper solutions of the problem. and
first and foremost among them
stands the proposed national central
bank. The scheme stands in this re-
lation to others for . double reason
II is the common belief that it will
form the basis of the curative legis-
lation to be recommended by the
monetary commission and President
Taft. In his recent Boston speech. has
signified his own favorable disposi-
tion towards the project. Conse-
qucntY. it is timely and appropriate
to disclose to the public just what is
believed to be in the minds of the
president ana senator Adrich and the
latter's seventeen colleagues on the
monetary commission when they refer
to the central bank: for. undoubted-
ly, there is a great lack of Information
even among bankers upon this sub
ject.
Mr.. Reynolds again is probably a
competent authority. and in his chi
cago speech he sought to outline this
important project. Here he pointed
out was to be bank of the people
and for the people. The people were
to be the stockholders, for anyone
would be privileged to buy the bank
stock just as he might government
bond. A small interest on such an
investment would be guaranteed byl
the government and by the stockhold-
ers. Political control of the great
bank would be made at least extreme
ly difficult by the life appointment OF
the officers. Integrity of operation
would be assured by a board of su-
pervisors, appointed by the presi-
dent, the secretary of the treasury
and the comptroller of the currency
tsubject to the approval of the SEN
ate), for alternate terms of at least
eight years to bridge over political
mutations Thus would be met the
objections founded upon the history
of the old United States bank that
the central bank might be prostituted
TO political uses and be made a pow
erful engine for the perpetuation in
power Of one party. 1t is not in
tended that the central bank should
support the credit OF the nation: that
must stand or fall by itself. If the
national government needs funds. IL
II spends more money than il collects
by taxation, II must continue in the
old way to borrow money from the
world at large by the sale of bonds.
For the single purpose of this pro-
iected bank would be to safeguard
the business interests of the people
in their private relations. If there
were need for more money for busi-
ness purposes. the bank would supply
il By notes. and if there were pie
thora. in dull times. these notes would |
be withdrawn rapidly. Government |
al assistance TO the institution would |
lie limited To the deposit with the