The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1910-10-09
BANKER SUMS UP
DESIRED LEGAL CHANGES


kSOAti IIOu aye N1n6.)
emergency currency will not be detect
ed when it makes its bow to the east
ern, middle western and southern pub
lie, but no bank note looks like a
twenty dollar gold piece and our people
insist on gold.
The comptroller of the currency is
alive to his responsibilities and can
keep the reserve city banks in strong
shape by using the power he has to
exercise care IN approving reserve
| agents. The power to exercise this con-
troll should make the acceptances of the
reserve city banks all the more desir-
able, and | believe that your associa-
ton would have the support of the
comptroller IN an effort to have the
law amended to allow acceptances. if
/ the advantages of the discount system
| We're properly brought to his notice.
In my contact with the country bank
er and the public. ! find that both fear
that ''Wall Street or Politicians
would gain control of a central bank
aud that the country banker feels that
! he would have no standing with the
central bank or any of its branches:
: the men in charge would have no SYM
| pathy with them and no knowledge of
! the securities which they had to offer.
| Convince the country banker that he
! would continue to deal with the same
correspondents he now has and convince
! him that n central bank or a reserve
! bank could be formed which '|Wall
Street the "Politicians'f could not
control. In addition, teach our bankers.
large and small. that central bank
would minimize the influence which a
group OF wealthy men have it within
their power to secure under. our present
system, and that central banks are the
friends Of the small banks and natural
~ antagonistic to the growth of large
and powerful banks. Let US get TO a
point where we can 90 before the public
agreed amongst ourselves. for until we
can do that, we will not make much
progress in any direction.
The good faith of the United States
government demands that the National
Banks be protected in their United
States bond holdings. Future bonds
need not be given circulation privileges
and the National Bank notes can he
retired as the present bonds mature
In the meantime We can formulate
plans to replace them with a currency
which will do its work and retire in
answer to business needs We recog
nize the evils of a bond secured eur
rency. Why perpetuate it by continu
ing to issue bonds with the circulation
privilege?
But few of US have what really
, should he used as a pledge for emer
gency currency and what it is neces
sary we should have to make any cen
trail bank success, and that is Bill
of Exchange. - Give us the machinery
to encourage them and bank ac
2 which will recognize their value ant
1 encourage the building up of dis
2 count market and the needs for emer
I gency or additional currency will no
= bother us very often
In my opinion, gentlemen, clearin,
0 house associations, emergency, clearing
n associations. or associations embracing
i the banks IN certain geogra phical zone
: VIII never accomplish what we need:
e will take a panic and one that has ha
considerable growth, to make the bank
e go TO their associations for aid. thei
= clients Will have been pretty badl
: punched. and every method of buildin
: up again that twenty-five per cent. 7,
Q serve VIII have been tried before tn
n banks Will be willing TO appear befor
> board composed of competitors. fO
y the purpose of taking out emergenc
:. currencF-for the reason that the con
g petitors Will see that the public know
$ Of the application unless thev are sui
> fclentiy scared TO keep it to themselve
: Th" country banks need legislatio
+ that will provide quick asset whic
II they can buy and sell. and thew nee
/ the ability to 90 to their corresponder
a IN reserve city as quietly and a
freely IS they make ramittances. an
Il the reserve city banks need the abilit
t. 10 90 TO their correspondent in the cer
l. tral reserve city in the same wav. !
time a national discount market wi
r enable the central reserve city to pc
e form the functions Of a financial ceI
e ter and all the time quiet and effectu;
education towards the necessity Of