The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1910-03-31

20 cOSJ tneIl anu JnlS WOulu De
fair transaction.
| at would be foolish to declare
that the adoption of central bank
ing system in this country is an easy
task. Before such a system can be
established the prejudioes of the peo-
pie must be overcome and some
means devised whereby the State
and national banks can share in
the beneficial provisions of the new
bank which must be recognized as
the head of the banking system .
the country. 1t is proposed that the
stock of the central bank be taken
in large part by the State and ma
tional banks according to the capital
of the present banks, or by some
other just rule that will have ger
eral application. This will prevent
a Capitalization Of power which is
so much dreaded by the opponents of
the measure. Such bank shou ID
have branches in all the principal
centers of the country and such pro-
visions should be made for supervi-
sion and control of the banks which
are to share in the central system
that the character of the assets OF
each institution and it's standing
should he readily as containablc.
This bank should be governed by the
officers of the treasury deraT III mt
and by officers chosen by the stock
holders. 1t should not do a gen.
eral banking business but it should
hold the reserves of the banks, re-
ceive, hold, and distribute the funds
of the government, issue the cur
rency, and rediscount for the banks
their business paper. The fact that
our country stretches from ocean
to ocean makes the task more labor
ious but it by no means forbids thu
Establishment of a scientific banking
system.
THE opponents of a central bank
as a last argument tell us that the
bank will become the prey of Wall
Street, the Standard Oil Company
and the United States Steel Corpora
ton. Just how those forces will get
control / am not advised / admit
their power in the finances of the
country. The answer to this argu
ment should be that in the first in
stance the stock of the new banl,
should be so widely distributed and
so protected that it could not be as
sembled in controlling amount in
any section of the country or in any
corporation or combination of men
The second answer should be that
human nature is pretty much alike
the world over and no such results
have been observed in the old world
where the central bank has been 50
long a successful institution. The
third answer is, that should the
nightmares which are troubling tn
timid become realities and TIE
great corporations anu COMBINATION
of capital, which are so dreaded ge'
control of the new bank, the princi-
pal of self preservation would
prompt a wise and careful manage-
ment. Why, these great combine
tons of capital only two years ago
committing their power to an alb {
fiancial leader, were the means OF
stopping the panic.
Now when we get the certrl
bank, after much argument and pei.
suasion, what will it do for us
First, it will regulate the rise ant
fall in the volume of paper none.
making this concurrent with tn
needs of business.
Second, it will regulate the inter
est rates and protect the country
stock of gold.
Third. it will concentrate the rA
serves for efficient use of the Co.
power in preserving confidence.
Fourth, it will furnish a liberia
source of available currency il
times of Stress and prevent panics
In short it will give us in place q
our cumbersome currency system I
scientific currency system