Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-11-22
SOUND BANKING SYSTEM NECES.
sARY TO PREVENT CREDIT
PANics.
CHICAGO BANKER URGES
NATIONAL RESERVE PLAN
Arthur Reynolds, Of Dss Moines, Prob
able Choice az Chairman Of Exseu-
tive Council Of American Bankers
Association = Delegates to Take
Cruise to Tropics.


men in several big lines Of work talk
ed to delegates to the American Bank
ers' Association when the convention
organized for the second days session
here this morning.
Most Of the speakers discussed their
topics from a technical standpoint
James B. Forgan, president Of the
First National Bank of Chicago, talk
ed about The Mobilization and Con-
troll of the Reserves of the Country"
Many other speakers from all parts
of the country contributed to the pro-
gram.
1t is predicted on the face of a
STRAW vote" that Arthur Reynolds.
of Des Moines, Iowa, now treasurer of
the association, will become chairman
Of the executive council. There are
contestants whom Mr.. Reynolds must
sweep out of the way, however. before
his election is assured. If he succeeds
his place as treasurer probably will be
filled by F. F. Ferrell, of Chicago.
The delegates to the convention are
locking forward to their cruise to the
tropics which begins Saturday.
American Trade on Credit.
"Ninety-five per cent Of the business
Of the country is now done on credit" "
said George NJ. Reynolds, of the Con-
tinental and. Commercial Bank Of Chi
cago, in a speech on currency reform
today before the American Bankers
Association.
sound banking system, he said.
was Of vital Importance in country in
which credit entered so largely into
business transactions. He strongly
urged the National Reserve Associa-
tion plan Of stabilizing credit and max
ing the country's enormous cash re-
serves an insurance against credit
panics. He said:
II contend that this plan has been
constructed upon the theory Nof giving
to the smallest bank In, the country
the same privileges and the same
prerogatives that 1t furnishes to the
largest institution;. and, too, I contend
the wage-earner who is dependent up
on a continuation of prosperity with
out interruption should favor the adop-
ton of this plan. as such an institution
as it contemplates will. in active op-
Grafton, be the means of preventing
these frequent seasons of depression
which result in throwing hundreds OF
thousands of men out OF employment
II contend that the farmer should be
enthusiastically in favor of this plan
for the reason that it gies to him an
assurance that his note, If he is SOL
vent and it is protected by grain and
livestock which he produces, can be
diecounted bv his local bank, because
the local bank. in turn, will have the
right to discount it with the National
Reserve Association, which will fur
nish him either credit or currency. nc
matter what the state of the reserve in
its relation to the credits already ex-
tended by the local bank may be.
II contend that the business men OF
the country, without reference. to the
KIND or character of business they are
doing, should favor the enactment OF
a law providing for the adoption OF
this plan, as it will give to them, II
they are solvent, an assurance that
they can at all times securec redit In
proportion to their reasonable needs
for credit. when such credit is backed
and protected by liquid. assets of a
character which are readily convertible
into other forms of credit when so de-
sired"
Mr.. Reynolds said that commerce
was not partisan; industry, credit and
currency were not partisan; character
integrity and personality were not par
tisan! Then why make partisan any
reform which treated only of these
non partisan qualities?