Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1911-11-17
PANIC INSURANCE
! IS URGED BY
CARNEGIE
Sound Banking System Imper-
alive to Curb Another Panic
Like That Of 1907; Pleads
for Central Reserve.

New York, Nov. 17.--'Moncy panics
don't hurt the rica." said sAndrew
Carnegie today. when asked why he
thought the United states had the
worst banking system In the world e
"Pnnics hurt the workIneman. TIM
rich ean manage TO get through a
panic like that OF 1907 without suffer.
Ing: II ~ the people wac depend upon
daily earnings for their daily bread
who feel the cruel burdens Of pnnics.
The rlch do not suffer for lack OF food.
or clothing. or shelter. because hun
dreds Of thousands OF American work-
ers are thrown out of employment, al
they wers In 1907. and as they were
In the se's and in the 70'sr -
Mr. Carnegie said that while no
great Industrial country could
Insure Itself against occasional
periods OF business depression follow.
Ing over-expansion ana over-specula-
tl9n. the experience OF Europe showed
conciusivcly that meaey panics could
hn prevented even In time OF war.
Isn't ], d humIliating thing" said
he. that this sreat rich country OF
ours is the only civilized country in
which money panics occur We
dnn's need 10 have panicr any mora
than We need TO have the plague. Wa
suffer from them because we have n
oanklng and currency system that
breeds panics
Before came home from abroad
This fail. Germany was just giving an
illuminating lesson OF how a sound
banking system prevents panics The
same conditions in New York that "a.
listed In Berlin few weeks ago would
1907.
England. France ana Germany
are safely secured against panioa.
When crisis comes. n IL promptly
controlled and made comparatively
harmless. How ny using the re-
serve banking power. Central bank
ips institutions always stand ready 10
ro-dlAconnt good business paper. and
ave legal tender notes IN exchange.
thus enabling the baaks to loan the
business community all che funds IL
needs In one week In September
the Heichsbank stopped the impsna-
Ing Berlin war psalc BY lncFessinx Its
loans tifs.poo. 900. and Increasing its
bank node issue by siss.ooo. geo.
In this country. IN such crisIs.
The whole machinery OF credit stous.
and ruin runs fsot Throughout tia
hns.nshs world.
II am impatient at the folly. vcs
the crime. - allowing our whole cred
structure 20 be exposed 10 disaster,
- y now y, simply because we have
nssiscted 10 follow shs example pf
other nations, By adding 60 eur bank.
ins system what other cieilirsd ma.
Hons have. via. a meana Of calling un-
on the reserves OF banks by hlsowlns
cooperative association OF the
banks to issue legal tender currency
~ tsmss OF atrskas I believe there n
not another duty 20 impsrntlvely de.
Iianded As the prompt creation OF thu
reserve powsr. u can only be done
~ the demand Of the people exprnnn.
90 'hfoagh legislation IN congress.
Nwe spend our lime dlscusslnr
uliling political Issues. leaving tho
entire structure OF credit open 10 dis.
nstfons panic, whi~h could easily ba
opFiuten with our banking system
provided with reserve power always
ready for action
I'VE sacrificed sound banking In the
Ciyli war 10 sustain she public credit.
when We besan issnlns currency has
"a on government honda hut today
our pn5ilc credit certainly seeds no
snRh support. Il II time We corfact-
"a the evil Of half a century ago.
Other countries have An enormous "a.
ynntage over %. because their bank
eurrehey n based on commercial pa
per arising out Of day-ie-day hush
mesa trensacilons. whom business eR~
pnndn. shefe 10 more conmsrclai pa
par creayea. and The currency auto
mailcaily sxpenda; when busInees CON
tracts. commercial paper IN retired.
and Me currency contracts. rho Dus4
'reHe community always haa the cur
rcncy y upeds and no move.
EVERY working men ana woman IN
Ataesica should fhayv shA equlvnlsnl
90 an inpurasce policy asal111i alIre
diansicF from financial nnul1a. A
nnau nara II..I 4 3.n0hlnn taaant.. ..,slt