Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1909-11-24
ROBERTS FAvoRs CENTRAL

nSSCnt . FANShS SCNIn nSe
BANK.
George e. Roberts, president OF the
Commercial National Bank Of Chi.
cago and former director of the mint,
who was also recently elected presl.
dent of the Chicago clearing house
delivered an address at Kansas City
last week in favor of the proposed
central bank plan before the Kansas
bankers association
Mr.. Roberts is an ardent up
holder of the central bank and as
serts that the plan offers more
comprehensive treatment of the cur
rency question than any other
scheme. Nine out of every ten OBJ
jections offered to the plan do not
apply to the sort of central bank
that is proposed, says Mr.. Roberts.
THE country is rounding up into
a fine state of prosperity again." said
Mr.. Roberts. "Out here in Iowa you
knew little about the industrial reac-
ton which followed the panic of 1907
for there has been a progressive
scarcity in food products in recent
years the world over, which has
made good prices. But the panic
created havoc In the manufacturing
centers. throwing hundreds of thous-
ands of people out Of employment
and causing untold distress. And now
that it is all over and we can re.
view the whole situation it is evident
that it was all, unnecessary.
Business Sound.
"We know now that the business
Of the country was in essentially
sound condition: the fact that there
was no epidemic of failures even un-s
der. the strain of panic conditions is
proof No doubt there was some
kite flying and they are at that again
already. Stocks are higher now than
they We're before the panic and land
speculation Is as i'ganeratsright nov.
as ever before in the history of the
country. AS a remedy for apeculN
sion, therefore, the panic cost q,
great deal more than the net results,
Ire worth.
ut brought about wholesome can
collation. of orders, interrupted indus
try, confused the outlook, caused bus
mess men to suspend their plans,
,ost the country nearly two years
Ifof progress and now the factories
that were running on half time for a
/ year are behind and working under
pressure to catch up with the delay
ed orders. The burden of this dis
organization of the Industrial ma
chine has fallen of course upon both
capital and labor, but more heavily,
upon labor because those idle months
are gone beyond recovery.
Currency System the Cause.
The panic was directly chargeable
to our crude and inflexible currency
SYSTEM" continued Mr.. Roberts. "OIr
banking system is highly efficient in
some respects. With our multiplying
of banks and substitution of checks
for money we do business with a com
paratively smaller stock of money,
and that is an economy beneficial to
the entire community. We hear
about $4,000, 100000 bank deposits in
the United States, practically all
payable on demand and only about
SO, ,00O, ,O0O,0O in the country all told
in the banks and out, and the fault
in the system is that we have. nc
means by which the supply of lawful
currency may be readily increased,Ii
an alarm starts, il a big house stubs
it's toe and an unusual demand fol
cash comes at any time, the banks
are helpless, although perfectly sol
vent. We can don othing but import
gold, slow and costly process.
Country Helpless.
mo other country in the world II
in this helpless situation. They al
back up their system of local bank,
with strong, semi-official institu
tion to which Is conflded the power
Of note issue, and which is thu
enable. by means of loans or reds
counts to supply cash to the loca'
banks in any part of the country. .Tht
situation is never allowed to develol
to a dangerous stage.
"The panic of 1907 started in New
York City, and every New York banl
that closed its doors then has sine,
demonstrated its ability to pay de
positors in full. II there had beel
any place to which they could hav,
gone and obtained currency on thei
good assets there would have beel
no disturbance outside of New York.
"pon't Want to Copy"
wsnt to copy any fol
taslt,ton What We do mus
be by way of addition to our presen
system. We do not want to impai
or diminish the present banking f,
eHities of the country in the Sigh
est degree, or interfere in the bus
ness of the local banks in any pa
ticular. We do not want a central II
stitution that will take deposits q
do any business with the public. Bi