Dakota farmers' leader. (Canton, S.D.) 1890-19??, 1910-12-02
STRONG FINANCIAL PLAN PRO-
POSED BY THOS. THORONN.

published in the Sioux City Tribune
ot'November y, and the Leader takes
pleasure in %reprinting it:
Canton, $. D., Nov. 26. To the
Editor of The Tribune: In reading
The discussions with reference to fin
ancial legislation, it naturally occurs
TO the average business man that
possibly the tinanciers may have ul-
terror motives in their consensus of
opinion tending towards the central
bank idea.
They must know that such a pro-
position is repulSive to the minds OF
the average citizen and as a matter OF
fact, the principles governing that
proposition were firmly esta blished in
the negative, as long ago as in the
days OF Andrew Jackson. 1t would
seem, however, that the lesson taught
US by the panic Of 1907 ought to be of
value. 1t occurs to the average bust
ness man, who remembe rs the relief
that the clearing house certificates
afforded the business interests of the
country at that time that if a federal
law was enacted that would authorize
and legaliZe the form alton OF clearing
houses in every reserve city in the
United States, such clearing houses to
have as members such corresponding
banks as might be tributary to them,
making it compulsory on all national
banks to be members of some clearing
house association, such banks to pay
a membership fee snd such other
charges for interest, etc. that may be
found necessary, then whenever any
members tu"Ha Themselves in mead 2e
ready currency. they could be author
iZsd to take their bills receivable and
securities to said clearing house and
Immediately receive in return clear
ing house certificates or emergency
currency under such rules and regula-
lions as may be worked out
This plan, it occurs to us, would
enable every group or sphere of banks.
or every community, to stand upon
its W bottom, based upon the COM
mercial resources of it's locality, per-
fectly Independent Of any other sect
ion of the country. Surely the coun-
try at large is entitled to a system of
this character and when we realize
that the senators and representatives
Of this great country representing
these business interests, have it en-
tirely within their power to enact
such legislation as will guard and pro-
tect the business interests of their
constituency, it would seem as though
there should be no difficulty in speed
lily bringing about such legislation.
1t is more than likely that the Wall
street interests would oppose such a
measure, but why should the welfare
of the balance of the country sit
Quietly by and permit "big business
to dominate the laws in their own
special interests? The present none.
tary system is undoubtly sufficient fol
all pratical purposes if there we're only
some provisions for meeting or ward
ing off currency stringencies in times
of unrest and panics.
It is true that the treasury depart
ment has been liberal in its construc.
tion. Of the Aldrich-VreeIand bill, in
defining the character Of the security
for additional circulation, but the
fact of the matter is that the present
laws are inadequate to afford the
necessary relief. and it is admitted
that the above mentioned plan is
pratical with the enactment of the
necessary legislation. The moment
that such a law was passed, it would
undoubtedly cause the money power t.
reflect before precipitating such a
financial condition as prevailed
throughout the country in 1907, and
If the system" should at any time
conclude that it would be to their
interest to discipline some ambitious
rival, thus demoralizing business in
their section, is it not reasonable to
suppose that the effect on business
would be confined to their Immediate
locality instead of tying up the whole
country a. in 1907.
Very respectfully,
THOMAS THORsON.