Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-09-14
FOR A CENTRAL BANK
President Reynolds Urges
New Currency System.
OUTLINES HIS. VIEWS
Directs Attention to Work Of
Monetary Commission.
FOREIGN METHODS STUDIED
Program Mapped Out for the Meet
ing of the Bankers Association
Likely to Be Carried Out.
FOREIGN METHODS STUDIED
Special Dispatch to The Star.

present indications prove false. steam
roller seems to have ironed out all the
wrinkles that the convention might have
had to face, and the opening meeting this
morning found the program for the ses-
sion all mapped out.
IT has virtually been decided that Lewis
T. Pierson. president of the Irving Ma
tional Bank of New York. shall succeed
George NJ. Reynolds as president. The
Offices of the association are awarded
through promotion in the executive coun-
ell, and Mr.. PiersOn is the next man In
line. All officers will move up in the
regular order. The convention is previ-
Gus years has attempted to disturb this
arrangement, but the precedent is SO well
established in regard to the presidency
that no opposition to Mr.. Pierson is
looked for.
The convention was called to order by
President Reynolds. Addresses of well
Joseph T, Talbert, president of the Chi
Cago Clearing House Association. The re-
Spouse was made by Col. Robert ]. Lowry
OF Atlanta, Ga, former president of the
association.
President Reynolds then delivered his
address.
Favors Central Bank.
President Reynolds addressed the con-
vention at length upon the defects Of the
national currency and financial system.
and urged the establishment of a central
bank of issue. with notes based upon coin
and commercial paper. the method en-
ployed by the Imperial Bank Of Germany
and the Bank of France.
Il do not claim there is nothing Of good
in our present financial SYSTEM said
President Reynolds, for until our volume
of business increased to point where it
was so entirely out of proportion to the
increase in our circulating medium 1t
served its purpose fairly we'll. and. con-
sidering its good features and with a
view of disturbing existing conditions as
little as possible, it should, for the pres
ent at least, be continued, with such ad-
ditions would be calculated to meet
our needs.
While there has been much agitation
of the currency question for many years,
it Is only within the past eighteen months
that the government has taken any action
in the premises.
The result of the initial effort by Con-
yress to provide us with laws under which
we would have the means, through our
currency system, to protect the business
interests of the country was the passage
OF what is known as the emergency cir
culation' or the 'Aldrich-Vreeland bill
This was not intended to be more than a
makeshift. which it was hoped would
meet our needs in an emergency. pending
consideration by Congress of the whole
subject, and is not therefore given Sc
rious consideration in any discussion of
the subject at this time.
Monetary Commission.
The appointment by Congress of the
national monetary commission was the
first step taken by the government with
view of enacting such legislation as
would provide for US an adequate system
of currency.
1.-The national monetary commission
comprises eighteen members. nine Of
whom were selected from the Senate and
nine from the House; it includes some of
the ablest and most experienced members
of both houses and of the two great poll
teal parties thus forming a body Of very
capable and strong men. They are
charged with the duty of studying the
whole question and the formulating of a
plan to be embodied In a bill to be pre-
sented to Congress for it's consideration
and possible enactment into law.
Exhaustive Study Of the Subject.
The commission, as body and indi-
viduaily. are making a most exhaustive
study Of the whole subject and are ac-
cumulating for their use information and
statistics of every character which can
seem to have any bearing on the subject
The executive committee of this commits
sion. consisting of nine of its members
went abroad during the summer of 1908
for the purpose of making a careful study
OF the systems of currency in operation
in England France and Germany. In ad-
dition to securing such information as
could be obtained. through personal inter-
views with the managers of the principal
banks of Europe. the commission ar
ranged to have written, by the foremost
students OF political economy in the vari-
Gus countries, a history of the finances
OF those countries for one hundred years.
They also arranged to have prepared for
their use: by experts in that line. statis-
tics on all subjects which could have any
bearing on the currency question in those
countries.
Complete Financial History.
The report which the commission will
make to Congress will be a complete
financial history of the principal coun-
tries of the world for the past one hun
upon currency, and will be given general
distribution among our people.
In view of the magsitude Of the work
the commission is doing, its report when
rendered will certainly be worthy of our
most careful consideration"
Reports of the standing committees.
the annual address of the president and
the informal discussions took up the rest
OF the morning.
Central Bank Favored.
Advocacy Of central national bank
empowered to issue currency and accept
commercial paper may be the feature OF
the work to be done by the convention.
This prediction is made by Fred Farms
worth of New York, secretary OF the as
ISOLATION. and number of other f!nan-
ciers who are expected to speak before
the convention during the week on this
proposition.
The central bank idea is one which l
think will meet the approval of many of
the bankers of the country" said Sec
rotary Farnsworth. The matter has
been talked over by many Of the leading
hnanciers, and they realize that thu plan
has merits. Some bankers have thought
that the establishment Of a central bank
would mean the inauguration of the
branch bank idea, such as Is In vogue in
canada. This is not true however and
II was never intended to be
This country is different in every way
from Canada. What meets the wants of
Canada would not suit us at ALL The cen
trail bank would have a tendency to wa I'd
on all financial depressions. inasmuch as II
would have the power to issue currency
and take commercial paper in its place
There never has been a dearth of pron.
erty values. The rub has been that cur.
rency has been short
Division Among Delegates.
Although many OF the members of the
bankers association are outspoken
against the postal savings bank and the
bank guarantee proposition. delegations OF
bankers from Kansas and Oklahoma are
said to support the latter idea. The hnan.
ciers are also said to be divided on sew.
erai other minor questions which are tc