The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1909-11-25
THE CENTRAL BANK SCHEME
A Clear Explanation OF What 1t
Means and What 1t viii Do.

Speaking before the Knights OF
Columbus nj Omahaha Congress
n,au =. NJ. Hitchcock attacked the
central bank proposition which
/ President Taft and Senator Aldrich
want to fasten on the country.
/ Read the Omaha Herald's summary
of what Congressman Hitchcock
says Of this gigantic scheme t. CEN
/ tralizc the finances of the country,
and then say whether you would
| like to see such conditions;
Congressman Hitchcock opened
10y explaining the revolutionary
character Of the proposal. II CON
templated depriving 1000 national
banks Of the power to issue bank
notes on deposit Of security with
give this power solely to the central
bank. This bank to have capital
OF Sl00, COG, 900 and to receive all gov
eminent deposits now scattered in
banks all over the country and also
all funds ordinarily kept in the treas
ury. This bank also To hold the re-
serves Of all other national banks
and to advance currency to them in
/ time Of need upon the deposit of Sc
curities. In other words the banks
Of the country now independent
would bc made subordinate to the
central bank. II would have the
power to expand or contract the sup
ply Of currency, to extend or To re-
fuse aid, To makes prices high by u
plentiful supply Of currency or to
force prices down by contracting it
and calling in loans. 1t would have
the power to fix the rate Of interest.
"What is the need for such re-
evolutionary proceeding? Is our
banking system in bad shape or are
our banks languishing? On the
other hand thc banking power Of the
United States has grown more rap
idly in fifty years than that Of any
other country. Mulhall, the rccog-
ni2ed authority on the subject, states
that the total banking power Of the
world is SjO,OOO,0O0 900 and OF this
the United States has twO-iifths
white all the other nations combined
only have thrcr-fifths. Very soon
We will have onr-half the banking
power of the whole world. Not only
that, but the banks Of America, in
dependent and owned by capitalists
whore they do business, perform
more service to their customers
than the banks Of any European
country. Then why copy the mon
archical system of any European
countries where Il few great banks
with thousands Of branches central
lie control and destroy independ-
cncc? Why emphasize that central
ization by creating central bank to
dominate the banking interests of
the country? Is it necessary on ac-
count of lack ofCurrency? We have
more than any other country. We
have all that we need legitlmately.
1.-The real trouble is that the big
interests in the east want system
which will put this currency into |
their control. They want system |
which will put the whole money sup !
ply in their hands. With n central |
bank they would get it. This is too
big n country to submit to such
The independence Of our |
banks is "A source Of pride and pros /.
pcrity. We do not wantto see them |
become practical branches of great |
central bank. The west has created /
and developed its own banks. 1t
OWNS them and is able to sustain |
hem If the law does not cripple them ,
and make them subordinate. The .
west especially should issue de-
rluration Of independence for its .
banks and protest against the pro- I
position tn make them dependent /
and subOrliuntp -