The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-11-09
TREAT ON CENTRAL BANK.

,ocatiou of Boston ON October 18th.
gave fair summary Of his position
on that important question. The
verbatim report Of the speech, how
ever. received since through the rinan-
cial papers. contains some details that
are of interest.
Mr. Treat docs not favor some of
ihc schemes for Central National
Bank He would have what he calls
Ia e" National Clearing House. Bank -
with limited banking powers, and with
limitations upon those who might hold
its stock lie would have this bank
incorporated bv Congress and would
make it a clearing house for all tue
banks IN the country that might be rep
resented therein. His preference would
be 10 have the banks represented as
such. with tho stock apportioued to
the different parts OF the country 50
that no ono scrtion would be able 10
control in the management and the Of
ticiadom of the bank lIe would dc.
bar the general public from holding
stock in this bank, and would even de-
bar all individual holdings, That is,
even where banks took stock iu this
central concern they must take 1t as
banks, aud not in the name of The in.
dividual Officers or directors of the
bank; The directors he would wish
TO have impartialiv chosen, represent
ing fairly the groups of banks IN the
different sections of the United States,
go as to avoid concentration of power
i'm the older and richer States.
He would not interfere with the is
sue Of currency by the present National
Banks. but in times of stringcncy he
would relieve that stringency by au-
thoriaing the issue OF National Bank
currency by this central bank ON ap-
proved commercial notes and sccurl.
tics endorsed by the previous bank and
guaranteed by the National Clearing
House Bank for an amount not exceed
ing - per cent face value. and mt
rate oC moi less than 3 per cent per
annum, with limit of credit of slS
months, the 25 per cent balance 10 be
paid back TO tho discounting bank on
lllt tdluIllN VI wv i''hr Nv '''''
limit the aggregate OF such loans by
the Government through the clearing
house bank TO an amount not 20 eS-
cccd % or 90 per cent Of IFS paid up
capital This emergency currency as
il might he called, would appear as
loan by tke Government to the Cen.
tral Bank.
Al the same time that such extra
ordinary powers were conferred upon
the central bank Mr. Treat would
eliminate the proposal made by most
Of those who urge Central National
Bank, that The Government should
guarantee profit-presumably small
TO the stockholders Of such a central
bank. He opposes the guarantee OF
profits as he opposes the guarantee of
deposits,
Mr., Treats plan. he thinks, would
receive the support of The Democrats
in Congress and of snch Republicans
as might be disposed to object TO such
National Central Bank as il is usually
planned He would oppose thc issue OF
currency upon postal notc deposits also.
as intellectual. cntangling. and liable
10 lead 10 disaster. He would make
this National Clearing House Bank n
depository of Government funds, but
perhaps not the exclusive depository.
The tendency. however. would CON
stantlv be 10 deposit most of such
money in the Central Bank in case il
were established by Congress.
In all these proposals for a Central
National Bank there is an evident dis
position and purpose TO push the Gov
erumeDt into participation with private
partics in the banking business, and 20
obtain for such concerns great adyan
tages from the Government. This is
natural enough in one way, from the
bankers standpoint, but is quite un-
natural from another view. 1t is nat.
ufal that thc bankers would want to
obtain the Government deposits for
their use. and natural, therefore, they
should want to involve the Govern
mcut in their schemes in one way or
another, they deriving the benefit
10PGtlIOlIIs IcuI IL - lut'
they should do this from another stand
point. the standpoint whcreon they
fought silver aud that they are con.
stantly fighting Government issues Of
currency When 1t comes TO tho pro-
posaI for Government currency, the
banks throw up their hands in horror,
and denounce the idea of the Govern
mcnt taking any part or having any
thing 10 do with what they claim to
be an exclusively banking proposition.
But since all Of the suggestions for a
Central National Bank involve Govern
ment cooperation. it is impossible to
recognize any consistency in this with
the bankers claim of excluding the
Government from the banking bust
ness. One class of public financicrs
is urging with great persistence the
idea of a postal savings bank. the
Government taking the deposits of the
people and using the money in such
way as the law will provide usually