Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1909-10-20
HANNA ON THE CENTRAL BANK.

The question OF d CeuII al JOHN
will be a live one in the next con-
gress, and just at the present time
information regarding the merits OF
a central bank are not as plainly ap-
Darent as were the merits and demer-
its of the free silver scheme or the
guaranty of deposits scheme. The
central bank has been argued as a
means of charging our currency sup
ply and of steadying our credits. A
good many members of congress are
not committing themselves either for
or against the central bank plan,
awaiting further light. Among these
is CONGRESSMAN l.. B. Hanna, who in
reply to an inquiry regarding the
matter says:
/ have not given very much study
to this central bank plan, and would
not wish to state positively as yet as
to the position I will take upon 1t.
am very much interested in trying to
see something done which will give
us a stable currency and which will
be of help should we have another
money panic as we had in 1907.
have talked with good many of the
bankers in North Dakota, and find
that most of them are at sea as re-
cards it. They do not understand
really what the plan is or will be.
They are all in favor of something
being done. but as to just what the
right method is they are not sure.
I believe that one thing that would
help us out a great deal in the mat
ter of currency. and that would do 1t
at once, would be to make national
bank currency full legal tender for
all debts, both public and private. so
that this currency would figure in the
reserve of national banks as well as
any other kind of money.
cannot see why THIS should not be
done. The currency Of the national
bank is guaranteed by United States
government bond. There Is per
cent reserve fund as additional secur-
ity deposited with the treasurer Of
the United States, and in addition it
is a first lien upon the assets of the
bank. If that currency is not good,
then I do not know of any currency
that is. The government is about to
issue more bonds for the purpose of
building the Panama canal, and 1t is
a question whether they can float
them at per cent. If national bank
currency were made full legal ten
der, the banks would readily take all
the Panama bonds at per cent and
issue currency against them; as it is
now, the government will probably
have to pay per cent, as bond at
2 per cent simply for an investment,
is not very attractive. There ought
TO be also, in connection with that,
some plan devised by which national
bank currency could be expanded or
contracted more readily than it can
be at the present time Under the
present law the amount of national
bank currency which can be redeem
ed in any one month is altogether
too small.
believe. also, that in order to
keep the money scattered throughout
our country, there should be reserve
cities for national banks. That, per-
AoPSy ulSAI US NoIICu lCSOA VIC ClLlcS
Of the third class. At the present
time there are three reserve cities of
the first class, New York, Chicago
ana st. Louis, which carry rs per
cent of their deposits in actual legal
tender. The reserve cities Of the sac-
ond class must be cities of over 25.v0O
people and must carry a part of their
reserves In cash and the balance with
banks in the reserve cities of the first
class. There are a number of natur-
al points in the United States.of less
than $4,000 people, which should be
made reserve cities of the third class
and allowed to keep a certain amount
OF their deposits in cash In their
vaults and the balance that would be
required with banks in reserve cities
OF the first and second class. This
would stop a great deal of the con-
gestion OF money at. the big centers
and would keep it spread out among
the people more and / believe that
that Is the right thing to do.
y It Is a question that we are all in
terested in and which, to my mind,
IS as great question as the solution
OF the tariff ~ = -. .~-
GEl1 .&t7F x
CITY IMPROVEMENTS. p