New-York tribune., 1910-10-05
|. 7. BUSH URGES REFORM
Advocates a Modified Form of
Central Bank.
BANKERS IN LOS ANGELES
President PieTson Praises Work
Toward Certification of Bills
of Lading.

Toward Certlticatlon OF Bills
of Lading.
Los Angeles. Oct. 4-TrvinS T Bush. Of
New York. chairman or the committee on
currency Of the Merchants Association Of
that CITY. addressed the American Bankers
Association to-day on the question Of need |
&C banking and currency reforms from the
point of view Of the commercial interests
of the country.
After reviewing the banking and cur
rencv system of Europe. and declaring that
the committee had found the proposed
central bank idea undesirable in some re-
spects, Nj Bush continued:
As a business man and representative of
an association of business men, I have pa
schemes and am forced to the conclusion
that a control of our currency by modi-
fed form OF central bank will be the best
and that such q control can be made to
meet all the objections which have been
raised against the present system. It is
the method selected by the great nations
with whom we are engaged in industrial
competition Let Us keep our existing
banking system, but provide those conduct
ing it with efficient machinery TO create
the currency which the business man may
require in the conduct Of his business and
payment OF labor.
The speaker then cited some or the more
serious objections which had been found
with the central bank scheme, and re-
ferred TO the committees efforts to devise
a modified system that would include the
better features Of all present systems. He
continued:
The matter seemed TO resolve itself into
z limitation OF the functions of the bank
and d method OF selecting a board of gov
ernors which would guarantee that no one
Of the three elements of politics. bankers
or special interests could control I viii
ask you to picture to your minds az the
committee has, central bank, governed
by a board composed Of bankers, q limited
number of government officials, and the
balance men engaged in business, and not
ldentlheG with either banking or politics,
With its functions limited absolutely to
dealing in foreign exchange, in order TO
protect or build UP our gold reserves. re-
CiScOuntinE certain approved forms OF
short-teTm commercial paper and bills of
exchange for regularly organized financial
institutions. and the issuing Of banknotes;
all PROFITS above some fixed percents ge-say
per cent-to go to the government or to
be used for some public purpose.
Membership on this board of governors
VIII be IS highly esteemed by the bank
CT and the business man as a position on
the bench Of The Supreme Court OF the
United States is by the lawyer to-day. The
one safeguards the final administration OF
cur laws by the numberIess courts of the
country, and the other Will supervise the
use Of our currency. Place the board I'm
the ItIoeltght of public opinion and make
0eTnDer6nip worthy OF the ambition of any
man The limitation Of the functions can
be absolute. The rediScounting can be
limited to other institutions. The class
Of paper accepted can be prescribed ana
certain Endorsements required. The issue
Of notes can be completely Safeguarded ana
an adequate gold reserve maintained.
Banking laws and needed legislation pro-
tecting banking institutions were the prin-
cipal themes at the convention to-day.
Tho convention was called TO order by
President Lewis Z. Pierson. president OF
the Irving National Exchange Bank of
New York City
The forenoon session was devoted to the
annual address and report Of President
Pierson and reports OF General Secretary
Farnsworth Treasurer ?. G. Kaufman
and General Counsel Thomas r. Patton.
The annual address of President Pier
son was in large part a review Of the
years work OF the association. He re-
feTred To the passage of the postal saw
ings bank act in opposition TO the efforts
Of the association. ana expressed the fear
that control Of the new institution would
be responsive to political pressure. Re
Gsrding the bank guarantee heresy," he
found justification for the opposition of
the association in the reported failure of
the undertaking in Oklahoma, where 1t
originated
Mr.. Pierson praised the work Of the bill
Of leding committee in endeavorIng to
bring about such cooperation among
cotton growers. railroads ana banks that
foreign bankers would find themselves
amply protected in the acceptance of cot
ton export order bills Of lading accom-
panied by the new valldation certificate:
and also complimented the committee on
travellers checks for the splendid sys-
tenn It had devised. "as these checks are
to-day readily accepted in every part of
the civilized world"
The subject Of active cooperation with
the National Civic Federation in its ef-
forts tc procure uniform state laws or
commercial points was urged. and the ad-
ruinistration of tho present Controller of
the Currency. Lawrence -. Murray, was
highly commended. Mr.. Pierson. how
ever. also urged strongly the additional
/ employment Of hank examiners by clear
/ ing houses and OF outside auditors by the
hanks themselves. He said: This work
would be greatly aided by the dsvsIoDmen-
Of Uniform system Of bank accounting"
MIR. Taft for Currency Revision.
Lee NTcClun--. Treasurer of the United
states. addressed the convention to-day
and urged reduction in the size of paper
money and a uniform size for both Treas
urv and United States banknotes. The
/ speaker declared that the government could
/ reduce the size Of bills u inches in length
! and = inch I'm width. thus saving $6i2,ooe
annually Nj McClung read telegram
( from President Taft. as follows:
/ Please present my compliments and
good wishes 10 the American Bankers As
/ sociation. in session in Los Angeles, and
I say that I hope within the next few years
we NAV have revision of the currency
laws 90 much needed
The report Of the committee on express
( companies recommended that banks issue
/ money orders in form similar TO those now
! issued bv the POst0fice Department and
/ the express companies
( The convention appropriated $500 for
! The relief of the families Of those who met
death ir the destruction of THE Los An
/ crlcs Times" building.
BUSINESS TROUBLES.