The Washington times., 1910-01-13
Representative Gillespie De-
Clafes Senator Is Misstating
Central Bank Plan.
EUROPEAN MODELS
ARE NOT FOLLOWED
Texan Declares Proposed Institu-
ton Would Not Benefit the
People, as in England.

Representative Gillespie Of Texas, ont
of the most active members Of the
House Committee on Banking and Cur
rsncJi declares that the advocates OF
the central bank for the United States
are not correctly representing the
operations OF the central banks OF Lead
ing Countries Of Europe and are trying
20 saddle On this country a central
BANKING institution purDorftng 70 be
notslsd Efts- those OF other countries,
but Il realty entirely different from
them
''ssoator Adz1ch proposes to estab-
liEh E central bank for the United
States which shall be q bank TO-
banks" sato Representative Gillespie.
He does not propose e bank which
snail be one with which the people OF
the country can transact business Il
VII be solelv 2 bank Of Issue. Il VIII
not receive deposits OF make loans. In
3 tine Of crisis, the banks which had
loaded themselves up with securities
would be helped out by an issue OF
notes
Tt IS generally represented that the
idea OF the proposed central bank In
this country Is 70 b. taken from such
Institutions as the Bank Of England,
Germany Now, as a matte Of fact.
the Bank CT England is not a banker
bank Il does a general banking bust
ness The same is true of the Bank
Of France
Act As Medium
Those banks stand between the other
hanks and the people. When Senator
Aidrich was In England he was told -
the chiefs OF the leading banks Of Eng
IND that their principal competitor was
the Bank Of England itself.
In France, Senator AIdricH was tod
that the Bank Of France was not a
bank OF banks, but THAI il did 2 large
share Of its business directly win the
people Of France When efforts were
made 70 get the president OF the Bank
or France 10 SAY that the Bank OF
france was 2 bankers hank. and that
the banks were its principal customers,
ne refused 10 admit anything Of the
kind He said that u bile tbs banks did
the larger share OF the business with
the Bank Of France Eer that highly
important part OF its business was trans
acted directly with the people them
selves.
AS a matter Of fact, vherc some time
zEO the B@uk Of France was doing about
20 per cent Of its business with banks
IL Is now doing only about 10 per cent
with the banks and the rest directly
with the people
Facts Held Back
These are facts which have not
been set before the people OF this coun-
Try BY the advocates Of the central
hank Senator AIdrich and those who
are with him in support Of the central
bznk idea which he favcrs. are giving
the country TO understand that they
want this country 10 have a central
hank patterned in some measure after
the big cove -.uenU banks Of Europe.
But they neglect 10 Se5 forth the extent
U lich some OF these government banks
transact business directly with the pub
lie and thus occupy q position IN which
they afford protection 10 the public from
sUv undue banking exactions-"
M Gillespie IS convinced the people
OF this country viii never consent 70
see 2 central bank ests blished which Is
Q mere bank Of haUks-in other words,
2 biz central institution as the cap
Ere2f Of the banking system which viii
DO TO business WITH the public.
MoreOy'er- he SEys that a single cen
t~zl institution T. any event would not
answer the purpose for this country
E5e deems IT TsUre feasible 70 divide
the country into zones and let E=-a
zone have its head hank. under rigid
Government control
lTr. Gillespie thinks ir quite likely
that Senator AIdTich viii become con-
VlnCed that his proposed central bank
cannot C. eSra bIIS1eG- and that ne may
IN the end modify his plan for cur
Teucv reform CoLIDl eJel--