El Paso herald. (El Paso, Tex.) 1901-1931, 1910-04-09
AMERICA CURRENCY DEMANDS GREATER
FLEX|b|uTY SAYS AN OFFICIAL

no illusion" that the same ends could
be accomplished in this country by ex-
actly the same means as in any other
country.
1t was on account of the striking
contrast between experiences here in
America with conditions abroad" said
Mr.. Andrew, THAT the national none
tary commission, in undertaking its in
vestigation of possible means for i'm
proving the credit arrangements of this
country, began by examining the bank
Ing institutions, customs and regula-
tions of the leading countries of Eu-
rope If, among other people, in most
respects not unlike ourselves, financial
panics do not occur and the credit sys-
TENS maintain themselves intact in the
face of stress and strain, then the rea-
sons for that difference require exam
fnation."
General Credit.
Mr. Andrew declared that -.in none Of
the leading countries of Europe during
the past 100 years, except in periods
of war and revolution, has there been
any such general collapse of credit and
general suspension Of the banks as oc-
Cured here only two years ago.
do not mean to imply, he con-
unued, that there has not been in these
countries an unceasing alteration of
do mean to imply that there have not
been great failures of banks and bust
ness firms Of all sorts. But upon all
these occasions there has been leader
ship and the situation has been kept
fairly in hand. There has been no in
fictitious panic and no general rout in
which guilty and innocent alike were
crushed to earth, the failures in each
of these cases having been confined
for the most part to the persons and
firms responsible for the previous ex-
cesses."
Comparison With Europe.
Comparing the banking system of
this country with those abroad, Mr.
Andrew said:
= Not only are our banking reserves
rendered less available in necessitous
times than the banking reserves of 9TH
er countries, because Of the rigid re-
quirement under our laws of a fixed
proportion of cash, but our reserves
are far less available than are the re-
serves in other countries because they
are scattered all over the country
among our $4,000 different banking in
situations. No aspect Of the banking
systems of other countries is more i'm
pressive TO an American than the con-
centration of banking reserves which
exists abroad.
1.-THE institutions which in other
countries are charged with the respon-
sibiilty of handling the greater part
of the balances of the banks" he add
ed, ARE not managed primarily for the
private profit of their stockholders, are
not operated primarily to earn divi-
dends, but are conducted with a more
or less admitted responsibility for the
of the common credit of
the country.
Note Issue
Another respect in which the drift
of the worlds banking is in different
direction from that of this country con-
Germs the matter of note issue. The
tendency of note issue regulation in
every other country is manifestly to-
ward their concentration in a single
institution The main advantage in my
opinion. of concentrating the control of
the note issue under a single body of
men who are conscious of public ends
arises from the opportunity which it of
fers for additional relief in time of
emergency and incipient panic
Il have no idea, and no member of
the commission has any idea" he said,
that the detailed arrangements and
regulations governing the banking sys-
tenn of any other country are applicable
to our own, but l do believe that some
Of the features which are common to all
other banking systems should be care
fully examined before we make any at
to-,opf a. domestic reform