Daily press. [volume] (Newport News, Va.) 1896-current, 1910-04-10
Director Of Mint Discusses
Monetary Commission.
FlEXlBILl1Y OF RESERVES
Concentration OF Note Issue Privileges
and Greater Conference and System
in Genera. Control Also Cited as
Essential Changes.
(BY Associated Press.l

bring the American bdiihhb S'"'N"
into line with the drift of the wofld
greater hexibility and greater moDiil-
~ i'm the banking reserve OF the couh'
try il needed. as well as are concen-
tratica in note issue privileges ana
greater conference and system III the
general control of the country's Dahk-
ing. This was the declaration maue
today L, A. Plat Andrew, director OF
! the mint. in an address before the
( South Carolina Bankers Association
on tho work of the natl maj monentarv
/ commission.
I The commission has not yet begun
TO discuss even the general outlines
of the recommendations which uitl-
mately it will have to make TO con
gress according to Mr.. Andrew. No
/ one today. he added knows what that
pien will be. He expressed his De-
| lief, however, that the material gather
ed by the commission, which VIII De
available within the ncxr few months
will constitute IAN encyclopedia oil
banking without its equal in the III
1
After drawing a comparison OF TIE
banking systems of some of the Bal
ropean countries with that of Amer
ca. Mr.. Andrew declared he ENTER
tanned no Illusion" that the same ends
| Cou.G be accomplished in this coul-
try BY exactly the same means as IL
any ether country.
! Striking Contrast.
at was on account OF the striking
contrast between experiences here IN
America with conditions abroad,
said Mr.. Andrew. that the national
monetary commission. in undertaking
its investigation of possible means for
| improving the credit arrangements oil
| this country, began by examining the
banking institutions. customs and reg
ulations of the leading countries OF
| Europe. II. among other people, in
most respects not unlike ourselves.
! financial panics do not occur and the
credit system maintain themselves in
tact in the face of stress and strain,
then the reasons for that difference
require examination"
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 occurred here only two
years ago"
| II do not mean to imply he con-
! tinued. that there has not been in
these countries an unceasing alter
alton of trade activity and trade re-
| taxation. Nor da mean to imply that
there have not been great failures OF
tanks and business firms of all sorts.
But upon all these occasions there has
been leadership ana the situation has
been kept firmly in hand. There has
been no infectious panic and no gen
| eral rout in which guilty and limo
cent alike were crushed TO earth, the
| failures in each of these cases hav-
ing confined for the most part to the
persons and firms responsible for the
previous excuses.
| 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
other countries, because Of the rigid
requirement under our law of a fixed
proportion of cash, but our reserves
are far less available than are the
PRESERVES in other countries because
lthey are scattered all over the coun-
try among our $4,000 different bank
ing institutions. No aspect of the
ranking system of other countries is
more impressive to an American than
;he concentration of banking reserves
which exists abroad.
THE institutions which In other
countries are charged with the respon.
sibility of handling the greater part Of
the balance Of the banks he added
are not managed primarily for the
private profit Of their stockholders
are not operated primarily to earn div.
idends. but are conducted with a more
or less admitted responsibility for the
maintenance Of the common credit OF
the country.
Another respect IN which the drift
Of the worlds banking is IN a differ
cnt direction from that OF this country
concerns the matter Of note issue The
tendency Of note issue regulation in
every other country Is manifestiy TO
ward their concentration IN q single
institution The main advantage. Ia
nv opinion. OF concentrating the con