The Washington herald., 1909-11-07

uniformity OF method and principle
throughout the civilized world. both with
reference 10 note issue and credit organi-
zation. This does not mean. Of course.
that any existing system could be adopt
ed by the United States-Certainly not
without many essential notifications.
I'VE are not able at this time 20 put
into definite form the character OF a
credit organization we think desirable for
the United States. but we can agree upon
certain matters and provisions that must
be guarded against or eliminated from
any possible scheme:
"First-It would be impossible 10 estab-
lish any credit organization that would
interfere with or control existing banks
OF whose resources OF credit could be
used for speculative purposes, or that
could possibly be dominated by the finan-
cial men or institutions il one section Of
the country We have many financial
Centers OF varying Importance in the
United States between whom natural RI
valries exist, and whatever form our or
genizatlon might take, II Is necessary to
guard against giving 10 one banking
community an advantage over another.
Wants No Political Bias.
"Second-It is Of equal. II not greater.
Importance that any plan which should
be agreed upon should not have. or be
likely to acquire. any partisan OF po-
.lticaI character or bias. I know how
difficult It IS in a country like ours. with
government by parties. TO keep subjects
OF governmental policy free from the sus-
picion OF partisanship. It is not neces-
sary that 1 should recall to you the num-
her Of monetary problems whose sOlu-
ton has been hopelessly delayed by be-
ing dragged into the political arena. Let
Us hope that the American people have
become more sensible, and that the bad
| precedents which have been established
in this respect In the past may have been
| forgotten. There Is nothing in existing
| conditions that should give 30 these
| precedents any value For instance, the
| Second Bank OF the United States. after
| having been supported in turn by all
parties, was finally destroyed as a mat
! ter OF party policy. 1t is not necessary
/ for me 20 say that no one is thinking OF
/ adopting the First or Second Bank of the
| United States as a model. No institu-
| ton Of similar construction or methods IN
management could possibly receive the
approval OF the people OF the United
States at this time.
IF. however. it should be found de-
sirable to adopt some Of the more i'm
portant features Of systems which have
been successful IN other countries, have
too much confidence IN the inherent good
Judgment and intelligence OF our country
men TO believe that the dead political
issues Of three-quarters OF a century ago
could be revived. or that the ghost Of
Andrew Jackson could be summoned TO
prevent a contamination which would be
advantageous to all.
Opposes Branch Banks.
''Third-whatever may be the advant-
ages OF system Of branch banking in
other countries, do not think it is pos
sible to adapt It to existing conditions in
the United States. The $500 banks now
in existence are largely independent In
situations, whose managers are familiar
with the wants and requirements OF the
communities in which they are located
The great mass OF the people who use
banking facilities either as depositOrs OF
borrowers, would be unwilling to give W
the advantage Of that intimate personal
knowledge Of the local bank officers anc
managers which they believe to be essen
tiaI TO their interests II would be diff.
cult, for instance, to convince borrowers
and depositors in a small town IN Illnoi;
that a man who had always lived In the
same community would not have clearer
and more sympathetic appreciation o,
their needs and credit than an agen'
sent from one OF the large banks Il