New-York tribune., 1911-11-14
BANKER DEFENDS WALL ST.
IT TaIbert Declares 1t Is Not
as Black as Painted.
cOMMENDS ALDRICH PLAN
National City Official Says 1t
Would Work Necessary Re-
form in Financial System.
,By Telegraph to The Tribune.l ]

,,s,roit. Nov l3-Joseph T. Talbert, vice.
.-os,sent of the National City Bank Of
w York. delivered an address here this
r.D,,r before the Detroit Bankers Cmp
:. .The Reconstruction Of our Banking
c,.s,enn" in which he outlined in detail the
satsc,s Of the present system and their
s.-ious consequences and commended the
s,.n Of the National Monetary Commission
- s,,ea 10 work the necessary reform. He
leo made defence OF Wall Street
The two vital defects Of the national
,.,king system, he said, were, first. the
,,dAnendent. isolated reserve system under
rbich the reserve money of each bank was
..rsed 10 be set aside and held as a sepa-
-.,a unit: and. secondly. a rigid, bond-se-
.rrAs note issue Of large volume, constantly
c,rculating and wholly irresponsive and un-
,s,ated 10 trade requirements.
AR Talbert declared that il banks in CEN
.-s1 reserve cities We're able TO discount
uhen necessary. short time loans bearing
one ortwo good names they would not be
osrced 20 lend their funds on call loans,
with securities as the collateral. Such
,osns ne said. are made rot of choice but
OF necessity.
Discussing the subject Of banknotes the
speaker said:
II has never been thought desirable 70
yestr@ct the volume Of bank deposits by
taxation. and vet II would be just as sound
and logical 70 do so as II Is TO propose 10
restrict banknote issues by taxation The
limiting Of deposits by taxation neces-
ssTilv would reduce the lending power OF
the hanks. raise the rates Of interest and
thus lay an embargo on trade. This is pre-
ciselv what does occur In consequence Of
anv scheme which provides for the taxa
t,on OF note issues
Sound hanknote issues should be based
uron the short time obligations Of mer-
chants and tradesmen. supported by ade-
ouate reserves of gold. No other class Of
votes exactly meets the requirements Of
trade The gold reserve is used to redeem
the banknotes when presented, the payment
OF the merchants loan restores the gold
reserve This important fact Is recognized
and The problem it presents in the case Of
our decentraNz zed system has been wisely
solved by the National Monetary Commis-
sion
Mr. Talbert remarked. in answer TO
those who oppose the Aldrich plan because
they believe II 10 be a scheme which would
render il possible for certain interests in
Wall Street TO corner the credits Of the
nation" that the PLAN did not originate in
He added:
II is about time that some Of US, fresh
from the West. who have been transplanted
10 Wall Street but who have not been
there long enough 10 fall under suspicion
OF having been transformed by the song
Of the siren. should have the courage TO
speak ont and 10 talk back in our native
tongue 10 the accuSers Of that much abused
and maligned community. In my tiue
have resided among the everyday citizens
Of nearly every section Of this country
and have been in the closest touch with
them / say OF the business men Of Wall
Street and Of the leaders who are con-
spcuous On IL that there Is not 20 be found
among them any single trait or character
isfic which Is not common among a Ike
humber Of business men anywhere else IN
the country II seems 10 me. from the
point Of view Of a new. man In wan street,
q pitv that there should not exist a better
understanding between the people or the
country and the men Of the Street.