The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-05-27
FOR A CENTRAL BANK.
Need of Head to System Fully Ex-
planned by Chicago Man.

Kansas bankers continue to arrive in
Topeka by every train and the attend
ance at the state association meeting
is exceeding expectations. Some ex-
ceptionally strong addresses have been
made, standing out promip emily among
which is that on 1.-THE Central Bank"
by Geo. E. Roberts president of the
Commercial National bank of Chicago.
Money controversies in this coun-
try said the speaker, "have been set
tied by piecemeal, and they have been
inclined to come back to us.
1.-THE silver question came I'D and
the people thought the bankers were
trying to dictate to further their own
interests.
Everything that happened in 1907
was previously predicted. with the ex-
ception that no one was sanguine
enough to believe that the banks would
pull through as well as they did. The
panic has a great educa tional value.
country-the richest country in the
world-they have to face conditions
peculiar to the United States.
"Since the panic Of 1907 congress
has taken an interest in banking. A
commission is making the most thor
ough study of banking conditions
throughout the world that has ever
been made. / believe if we are to get
any marked changes IN the next few
years they will have to come through
this commission.
What we want is an organization
that will back up and support the
system of local banks
"It is recognized everywhere that
under the modern conditions an elias
ticity in the currency is absolutely
necessary. In this country we lack
just this central factor. We have
thousands of banks, but they stand
alone and are like an army without a
head.
Nobody is looking for a panic at
this time. but the banks are in no
better condition today to meet a panic
than they were in 1907
Credit Used to Limit.
what would you think of a COM
the limit-wen, that is the condition
of the banks in this country.
''The main argument used against
the Central bank idea,' Mr.. Roberts
said, sis that we had one years ago
and it got into politics and that an
believe this and all other objections
can be met in the organization. My
idea, or at least one idea, would be to
have thirty leading clearing houses,
| located in thirty different cities, elect
one each on a board of directors for
the Central bank.
Another plan would be to place
stock with the local banks and have
SndTenOlueTS eject directors DY QlS-
tricts. The directors would be divided
in politics because of their wide distri-
| button over the country and that fact
would keep the Central bank out of
| politics. There ought to be q super
visory board appointed by the presi-
| dent and treasury officials. The direc-
| tors would be from all parts of the
country and their interests would be
| general. In doing this there would
| be no need to disturb the present
/ EaT IL TT1rr
THE Central bank would have no
| deposits except from the government
| and a bank with no deposits never be-
comes much of monopoly. 1t would
be central agent of existing banks
| for the purpose of rendering assistance
to them and to the public
Farnsworth Talks.
"Objectives in Association Work.
was discussed by Fred E. Farnsworth.
general secretary American Bankers
association, New York. He told of the
purpose of association work.
Dolley Was There.
| There is something radically wrong
with the banking system in this coun-
| try" said State Bank Commissioners
]. N. Dolley. Money is scarce and i
admit It, and reserves are low, and l
| believe this condition will exist until
| fall. I'd suggest that bankers should
cut their cloth accordingly. However.
! so far as 1 can see. there is no cloud
on the banking horizon.
THE German system is much better
| than ours. The Japanese adopted it af-
ter trying ours for ten years, and find
! ing it inadequate. The trouble is the
bankers do not study the problems be-
| fore than.
! Gentlemen, you are going to be call
| ed upon to decide things or allow GER
! tain men in Washington who do not
| know any more about banking than
| they do about operating a battleship,
| tC decide for you.
Il do not intcrd to discuss the bank
| guarantee law here. 1 do not think ii
| wise to discuss it. 1t has been threshed
out thoroughly and every banker in
Kansas krows just where he stands on
/ the subject
In his Introductory remarks Mr.. Dol
| ley paid high compliment to women
in the banking business. Never in the
| history Of the banking business. in
Kansas, has woman ever gone wrong