The Vinita daily chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1902-1913, 1909-10-13
MONETARY SYSTEM
MUST Be REVISED


competent authority, ana in his Chi
caeo speech he sought to outline this
important project. Here he pointed
out. was to be a bank OF the people
and for the people. The people were
to be the stockholders, for anyone
would be privileged to buy the bank
stock just as he might Government
bond a small interest on such an in
vestment would be guaranteed by the
Government and by the stockholders.
Political control Of the great bank
would be made at least extremely di-
mcult, by the life appointment of the
officers. Integrity of operation would
be assured by board Of supervisors,
appointed by the President. the Sec
retary Of the Treasury and the Compt-
ro' 'er Of the Currency, (subject to the
approval Of the Senate), for alternate
terms of at least eight years to bridge
over political mutations. Thus would
be met the objections founded upon
the history of the old United States
Bank, that the Central Bank might
be prostituted to political uses
and be made powerful engine for the
perpetutation in power of one party.
1t is not intended that the Central
Bank should support the credit of the
Nation; that must stand or fall by it.
self. If the National Government
needs funds; if it spends more money
than it collects by taxation, it must
continue in the old way to borrow
money from the world at large by the
sale of bonds.
For the single purpose of this pro-
jected bank would be the safeguard
to the business interests of the people
in their private relations If there
were need for more money for bust
ness purposes, the bank would supply
it by notes and if it were a plethora,
in dull times, these notes would be
withdrawn rapidly. Governmental as
sistance to the institution would be
limited to the deposit with the Cen
tral bank of all government funds
now in the national banks. Perhaps
that feature of the project would be
obnoxious to the existing banks, but
it is hoped that they would find their
compensation in being relieved from
their present burden of carrying the
whole weight of responsibility for in
creased in the circulating medium to
meet sudden demands of business. At
any rate there would be no interfer-
ence with the most profitable feature
of the banking business for the CEN
trail institution would not receive de-
posits from individuals.
The question as to how the busi-
ness man is to benefit by central
bank is sought to be answered for
the acceptance of good commercial
paper as a basis for the issue of
money. Such paper would represent
actual transactions between solvent
concerns-aI short time credits-and
sure to be redeemed whenever the
transaction-the sale and delivery
was concluded OF course, there
would be a reasonable coin reserve to
maintain equilibrium.
Such, in brief, is a bare outline of
the plan, which with manifold de-
tails, probably will be laid before con-
gress, as an accompaniment of the
report of the National Monetary com
mission. That it will meet with fair
est and prolonged opposition, cannot
be doubted and this, too in spite of
the best efforts of the administration,
to have the matter regarded as non
political The mere suggestion of a
central bank already has sufficed to 4
agitate deeply the great banking in
terests and the line of division began
to be apparent at the last bankers
convention at Chicago Many of the
bank officers regarded the project with
deep suspicion. They were told that
no encroachment upon their business
was contemplated beyond the with
drawal from their vaults of the gov
ernment's funas; but they regarded !
the measure as the opening wedge |
for the destruction of the most lucra-
tive portion of their business and |
viewed with anything but favor the !
plan whereby the government bank |
was to enter into competition for the
enormous discount operations which
have very great influence in the in
dustries OF the country Possibly |
their objections can, in a measure. be |
weakened by recourse to some
other means of securing a basis for
the circulating notes of the central /
bank than commercial paper, such
as an enlarged reserve of gold and
silver. or even gilt-edged mortgages
on real property. But those very sug-
gestions probably would call forth a
new army Of enemies. to combat the |