The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-09-14
HEAD OF BANKERS
FOR CENTRAL BANK
President Reynolds at Chicago Meeting Contends Need
for l-Delegates and Spectators Hear Addresses
by Leading Financiers of Country.

quirements on National banks FOR re-
serves are such that in times OF need
the banks are forced TO contract their
credits. instead of expanding 70 meet
the requirements Of business, thus re-
duclng, rather than increasing, their
credi;-giving power. Again, under our
present system there is not sufficient
fexibility in our bank notes to enable
banks 10 meet the reasonable demands
o. business on them during times Of
emergency.
With about $3.50. 900. 900 Of our circu-
laung medium consisting of National
Dank notes secured by United States
per cent bonds, carried by the banks
at highly inflated value. the only
feNibility shown has been a material
expansion OF our bank notes during the
past few months, when we have had a
plethora Of money and interest rates
have been abnormally low; and since
our banks could not have followed any
otter course without suffe ing great loss
through the sale of their United States
bonds. ii proves that cur system is
wholly unscientilc and in times OF
stress impractical.
For Emergency Use.
TO nv mind. our foremost require
ments are to have established an insti-
tuition which could in time of need fur
nish credit in proportion to the reason
able needs of business and which would
by law be given the power, under proper
restriction, to issue its notes to be used
as a circulation medium.
"a central bank. organized under a
charter which would give it these pow
ers and operated under an intelligent
management. would go a long way
toward solving our financial problems -
President Reynolds address was re-
rr
Farms worth then read the annual report
of the secretary. This gave IN detail
the work Of the various standing com
There was shown to be a total member
ship OF the association of 1852 and a
total income of sl75,930
The purely routine reports Of the
treasurer and auditing committee were
then read, as well as the reports Of the
executive committee. General Counsel
Thomas u. Patton, of New York, and Of
the standing protective committee
Chairman r. O. Watts, OF Nashville,
Tenn. read the report of the executive
council
At 12:15. at the conclusion Of its regG-
lar morning program the convention
listened TO an informal address by
Speaker Joseph G. Cannon. Uncle joe
got a big ovation when ne walked
forward and began his address in char
acteristic manner. The conventtcn then
EEtE~ctA
Considerable interest attached TO the
report of the bill Of ladlns committee,
which was read by Lewis E Pierson,
OF New York. at the opening OF the
afternoons session PiersOn Is slated
TO be the next president OF the asso-
citation. succeeding George NJ. ReynOld.
of Chicago.
After the committee on express COM
panies and the currency commission had
reported, Hon. Lawrence Q. Murray,
Controller of the Currency Of the
United states, was introduced and dis
cussed some problems Of the Con-
trolIer's of6ce.'
The first business session closed with
a rapid fire debate on practical banking
questions speakers being limited TO i've
minute talks, and discussions being con-
fined to thirty minutes for each topic.