Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-10-08
PLACES BANKS IN CONTROL
Movement in New York for National
Reserve Association.
NoN-PART1sAN IN CHARACTER
Promoters Not in Favor of Aldrich
Financial Scheme and Oppose the
English System.
Special Dispatch to The Star.

|
NEW YORK. October John Claflin,
president of the New York state branch
OF the National Citizens League, an
nounced today that the league is in favor
OF a national reserve association. which
Will take full control of the finacial situa-
ton In the United States by amassing in
one stronghold the reserve cash now held
by every bank in the country The OBJ
ject OF the league is to arouse sentiment
for reform Of the currency and banking
laws to stop senseless panics.
The headquarters Of the National Citi-
zens' League are in Chicago. Following
are the officers and directors:
| John v. Farwell, of John v. Farwel
Company. president: John Barton Payne
Of South Park commission, vice president
]. Laurence Laughlin of the University
of Chicago, chairman of the executive
committee; A. G. Bartlett of Hibbard
Spencer, Bartlett & Co., treasurer; Muir
ray s. Wildman of Northwestern Uni
versity, secretary Of the organizations.
| Directors: B. e. Sunny of Chicago Tel
ephone Company; Cyrus H. Mccormick
Harry A. Wheeler OF Chicago Associa-
ton Of Commerce, John G. Shedd Of Mar
shall Field & Co., E. A. Delano Of the
Wabash Railroad Company, F. w: Up
| nam OF lily Fuel Company, Midi VII
Hughitt of Chicago and northwestern
Railway Company; Julius Rosenwald OF
| Sears. Roebuck & Co.. A. A. Sprague OF
Sprague. Warner & Co, Clyde NJ. Carr
of Joseph T. Ryerson & Son, F. II: Arm
| strong Of Reid, Murdoch & Son, Graham
Taylor of Chicago Commons. c. Z. Wack-
er of United Charities, and Joseph Bash
Of Siegei. Cooper & Co.
Widening the Scope.
| Branch leagues with similar sets of
| officials are being established in Buff
falo. Syracuse. Utica and Albany. Other
state league organizations are under
way in Connecticut, New Jersey. Della
| ware. Maryland. etc.
1.-THE panic Of 1907 was as unneces-
sary as 1t was disastrous" said Mr..
Clafin. "It disclosed weaknesses in
| our banking system, which all admit
can be and must be effectively correct
| ed. The country is still suffering the
| effects Of this panic and some banks
are suffering more. There is no legis-
| lation of any kind-tariff. railroad cor
poration. or of a general character
| that at all equals in Importance the
| putting Of our banking and currency
| system on a sound basis.
This movement Is non-partisan and
must be kept so. The problem Is too
| vital and pressing to be made the foot
ball OF party politics. 1t must not be
| delayed and diverted as the tariff matter
has BEEN
1.-The National Citizens League" Mr..
| Claflin added. lis altogether Independent
| in every way. We recognize the able
| and thorough work done by the none
tary commission. but the league has no
cut and dried plan to offer.
solicits Suggestions.
| There are certain basic principles of
reform upon which we are agreed. Fur
| ther than this we want suggestions from
| all sections and all classes to the end
that the remedial legislation that is
finally adopted by Congress shall reflect
the needs Of the country at large.
I'VE do not advocate central bank
doing q general banking business. but do
believe in what has been called National
Reserve Association, controlled and man.
aged so as to represent the democratic
spirit and the sound common sense Of this
nation.
when the weaknesses of our present
| system are understood and the principles
| Of sound finance are made clear to all
and we hope to make them SOL have
confidence that the legislators will devise
the right kind OF laws and that the peo-
pie will want those laws enacted
Purpose Of the League.
| It is sought through the National
Citizens League plan to take full con-
troll Of the financial situation Of the
whole country by amassing in one
stronghold the cash now held by every
bank in the country. Notes issued by
| national banks would be thing Of the
past. Banks would no longer hold their
own reserve cash. Instead, they would
deposit this reserve with the National
League, which would retire the indi-
vidual bank notes, and issue National
League notes to each bank, covering the
amount Of reserve deposited by that
bank.
| Although 1t is not made clear, the I'M
Outstanding is that the temporary direc-
tors would retire in favor of new men
tn be elected by the banks themselves.
There would be two classes of directors
/ one elected by banks, who would be in
| the minority, and the other elected on
the plan that each bank would be repre-
sented by q unit. regardless OF Its size
Presumably these would be controlling
directors OF the National League. 1t is
nroyided that In elections the stock of any
hank owned by q holding company or
| corporation could not be voted.
Possible Capital, $500, ooo, 900.
State and national banks would be ex-
pected to subscribe for stock in the ma