The Mena weekly star., 1909-10-14
FORA CENTRAL BANK
MONETARY COMMISSION TO REC oMMeND SUCH AN iNsTETU-
 TON IN THE REPORT.
CONGRESS- EXPECTED TO ACT
Temporary Financial Legislation Enacted During Critical Time in 1907 Must Be supplsnted or Made
 Permanent-President Favors Plan.

Washington, Oct 7.--The coming congress must meet a situation born
 of the panic of 1907, when the issue Of
 ciearing house certificates by the gov
 egnment to supply sufficient currency to meet the demands of the business interests of the country was necessary.
 ...e temporary legislation enacted curing that critical period must be either supplanted or re-enacted into permanent law and foremost among the various projects that have been advanced as proper solution of the governments problem stands the pro posed national central bank.
 It is the common belief that it will form tie basis of the curative legisla ton to be recommended by the none taYy commission and PresIaent Taft in his recent Boston speech, signified his own favorable disposition towards tue project.
 "A bank of the people and for the people is the definition of this in- ssftutson made by George NJ Reynolds president Of the American Bankers association, in his Chicago speech. He pointed out that people were to be the stockholders, for any one would be privileged to buy the bank stock lsst as he might . government bond A small interest on such an invest menf would he guaranteed by the gov ernment; any earnings more than suitl- cient to pay the guaranteed interest would be shared by the government and by the stockholders Political control of the great bank would be made at least extremely difficult, by the life appointment Of the officers Integrity Of operation would be as- sured by board of supervisors. ap- pointed by the president. the secretary Of the treasury and the comptroller of tne currency.
 The single purpose of this projected bank, would be to safeguard the busit neAs Interests of the people in their private relations. If there were need for more money for business purposes. the bank would supply fl by notes. and If there were a plethora. in duh times these notes would be withdrawn rapidly Governmental assistance to the institution would be limited to the deposit with the Central Bank of all government funds now in the na tional banks.
 That this plan will meet with pro. longed opposition when laid before congress cannot be doubted, although the administration desires to have the matter regarded as non-political.
 At the last bankers convention at Chicago many of the bank officers re. garded the measure as the opening wedge for the destruction of the most lucrative portion of their business. and viewed with disfavor the plan whereby the government bank was to enter into competition for the enor- nous discount operations which gave them very great influence in the in- dustries of the country. Possibly their objections, in a measure. may be weakened by recourse to some other means of securing a basis for eAo 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. It may be that the existing political parties will be divided on this great question, and that there will be new alignment in congress when 1t is broached. Indeed, there Is some reason to believe that the ad- ministration would prefer to wage the battle on this basis.