The Washington herald., 1910-11-13

4
there has probably never been more
notable gathering than that assembled
during the week just past at Columbia
University. New York City. under the
auspices of the American Academy OF Po-
liticsl Science. Continuing for two days,
papers and addresses were presented by
| eminent bankers, economists, and repre-
Isentatives of the Treasury Department
Coincident with this conference was the
meeting of the national monetary conf
mission. at which Senators Aldrich, Bur-
rows. and Money, ex-senator Teller. OF
Colorado; Congressman Vreeland. of New
York, and ex-Congressman Bonynge. Of
Colorado, We're In attendance.
In financial circles, both here and abroad.
was expressed a great deal OF interest
in the two meetings. Foreign finaneiers
looked for the announcement that the
commission would urge legislation on the
| currency system. and a central bank at
the coming session OF Congress. In fact
| with the victory OF the Democratic party
| in the elections. Europe considered such
a course insured In the same manner.
they looked to the sessions at Columbia
University to bring out an expression OF
sentiment from the banking fraternity
on the national questions. Financially
speaking. it was a notable occasion.
A Notable Gathering.
Washington. as the financial center of
the United States, was ably represented
at the Columbia University conference.
Realizing the manifest Importance OF be-
ing in the front rank of any movement
which might develop from such gath
erlng, the Washington Chamber Of Com
MERGE sent 10 New York five able repre-
sentatives OF both their organization and
financial Washington. These were as
follows: George White. OF the CONNER
cial National Bank; Charles J. Bell, OF
the American Security and Trust Com
pany; Julius !. Peyser. of the Merchants
and Mechanics Bank r. A. Walker. OF
the Lincoln National Bank. and ]. Selwin
TAFT, Of the International Banking Cor
poration.
One of the most interesting papers pre-
/ scented before this conference was that Of
Irving T. Bush, chairman of the cur
rency committee of the Merchants AS
| ISOLATION, entitled 'srhe business man
view OF currency reform" II not only
brought forth the enthusiastic applause
Of his audience. but sincere congratula-
ton from members OF the American
Academy OF Political Science. This body
is made up Of the foremost professors CT
our colleges and representatives from
other scientific circles. 1t looks upon
an expression on such a question from a
business man as more truly rejecting
the actual sentiment throughout the
| country than any deep economic research.
| Il shall waste no time to-day in dis
| cussing the defects OF a bond-secured
bank note" said Mr. Bush. the need
| for an elastic currency, or any OF the
| many details which constitute the regu-
| lation currency address.
II take it that the time when il is nee
essary TO discuss those features before
an audience Of this character has passed
We are agreed as 10 the evils OF the
present system and the principles upon
! which reform should be based.
There are, 1t seems 10 me, but two
things which il is necessary to discuss:
The method of applying the reform prin-
ciples upon which we agree, and how to
create among the general publiea knowl-
edge Of both the principles and their pro-
posed application.
The Business Standpoint.
7 am invited to speak 10 you from
the point OF view OF a business man.
shall assume at the outset an agreement
upon principles. and discuss first the
method OF their application.
! The methods which may be accepted
as worthy OF serious discussion divide
themselves into two classes: Those pro-
viding a central control and those de-
signed to provide a system permitting
the banks of the country 10 issue bank
notes under certain rules, up to an es-
TsaE-r
While the committee for which / speak
recognizes the force of the arguments
which have been advanced against cen
/ trail control. our conclusion is that il is
the best method to adopt We eliminate
as unimportant all objections OF a central
| control. except four. These are as fol-
| lows:
Objections Considered.
First a fear on the part OF many
| OF the control OF our currency passing
into the hands OF politicians;
Second. The danger of control by spe-
cial interests:
Third. The fear of exclusive control
/ by the banks of the country. and.
/ Fourth. The feeling on the part of
some of the bankers that any currency
| control which took the form of CEN
]
| In their business.
''The final analysis will show that only
one OF them is really to be feared-that
| the control by special interests. If the
| general public can be satisfied that what
ever system of control adopted can be
/ administered for the good of the crun-
/ try and any selfish interest absolutely
eliminated. the objections to a central
/ bank will end.
Want Central Bank.
1.-The proposition for which we stand is
to design a method OF selecting board
of governors Of central bank of GER
/ tain limited functions, so that selfish in
! terest can never dominate it's admins
| tration. The opposition to this PROPOSE
/ ton usually dismisses the whole matter
! with the sweeping statement that this
! cannot be accomplished We do not be-
! lieve this to be true. Other nations have
succeeded in controlling their currency.
1 through the medium of central bank,
without finding this danger to be real.
and we believe that If the object to be
attained is recognized at the outset, and
( every safeguard provided the people of
/ this country are quite as capable of ere
ating currency control free from the in
4 iiuence of selfish interests as those of
our commercial competitors abroad.
Public sentiment, when aroused, is
nearly always correct In deciding
/ whether we shall establish well-defined
restrictions for the control of our cur
rency and then delegate it's administra-
/ ton TO a central board, or whether we
shall attempt 10 create for all time a
method which can be successfully operat-
ed without such a control. we must rec
ognize the dangers of both sides.
Opposing Dangers.
I'VE have seen many cases where he
] rnu-ar Of cnntrnl hos hanr, selanhI..- ....l