The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-04-08
FINANCIAL PANIC
WORSE THAN WAR
Vreeland Tells I ankers
1t Is Unnecessary
and Wicked.
PRESENT SYSTEM
is INADEQUATE
Declares That No Other Nation
Suffers as Much, Even in Flush
Unrestricted States Treas
urer Lee McClung Speaks
at Dinner to
Bankers.

That rccurrcnt financial panics In
the United States cause more suffering
and loss than all the wars in which
the United states has ever engaged.
and that they arc Unnecessary and
wicked because prcvcntabic was the
assertion Of Edward b. vreeland. mem
Der OF Congress from New York ana
vice chairman OF the National None
tary Commission. before Richmond
Chapter OF the American Institute o:
banking at It's annual banquet 1T .ne
Jefferson auditorium last night.
MIR Nrecland asserted that 10 cora
try III the world save the United states
suffered from such periods Of money
strinEcncy-that the present hnancia.
system Of the country. a nakeshift or
Civil War condtions-had been out
grown by the enormous development
OF the country.
IF our banking system Is SO made
uuate that It breaks down in time OF
peace on an average Of once In ten
years asked Mr.. Nrccland. what III
heavens name Will It do In time or
WARP"
Lee NcClunE on banking.
Other speakers were Lee AicCiunE,
Treasurer OF the United States, Who
read an able paper on the relation OF
the United states Treasury to the
banking system OF the country. Gov
crnor William Hodges Mann. cx-Gov-
crnor Andrew jackson Montague ana
Ralph II. MacMichael, OF pitisburg,
president of the American institutes
OF Banking. John Garland Pollard
acted as toastma stcr. Carter f. Tai-
man. president OF Richmond Chaptor.
welcomed a number OF distinguished
guests, including several railway pre-
idents, bank presidents. manufacturers
end merchants and presided curing the
evening.
MI. Nreeland was introduced by Mr..
Pollard a member OF ..small but
respectable minority IN the House. now
known as the Republican party" He
was informed that although it has been
said that the greatest OF Virg.nians
are dead. yet some great Nirginians
.'lie" above the sod Mr.. Vrecland, in
opening, added to Governor Mann's list
OF great Nlrginians who had aided in
the making OF the nation the name Of
Robert +. Lee, who. he stated. when
history came TO he judged fairly and
justly. would be rated high for the no
biltty OF his character as for his ability
OF performance.
Monetary Systcr, Reform
The most important question, save
alone the preservation Of our peact,'
said Mr.. Nreeland, rs the reform Of
our monetary system. 1t affects every
man. woman and child in America
the banks possibly less than the manu-
facturer and the la borer The wise
banker. when the signs Of panic ccxiie,
can take In sail--he can call in his
loans. 1t is the manufacturer and the
wage Garner who is primarily con-
cerned that we have a system Of bank
Ing that will stand up in time OF panic
u "A ~
is defective. In the past half century
every other great nation has revised
It's system OF banking, and in no ether
great nation do the rccurrcnt money
panics appear Isn't 1t the fea, of a
future panic that shapes every transac-
ton you make? Haven't YOU always in
view those paroXysms which we have
had on an average every ten years?
Competing nations have no; had a
money panic in nifty years Is 1t pos
sible that We the greatest nation IN
invention and activity. that we alone
should suffer these nanics except
through defective machinery cf bank
Ing and currency?
Panic From Clenr sky
THE panic of 1907 fell out Of a clear
sky, when the country was busy and
prosperous. The people then woke up
to find that they had system that
was unable to bear the burden Of the
4 EXTENDED business of an enlarged cOun-
try.
"we cannot escape dcpressions in
business from failure Of crops Or from
wars or rumors of wars, but every
such depression causes a breakdown,
closing Of banks. 1t Is resulting
+ In breaking down our credit We arc
not over the panic Of 1907 yet We
have a system which almos, compels
pantcs. Every wise and careful banker.
is watching to protect himself Sun
ta
outbreak on the Pacific coast should
suggest war with japan. Every banker
IN the United States would commence
call IN paper and put more money in
his vault. When 10000 or $1,000 hanks
begin that, II precipitates the very
OF commerce arc cloggcd and there
results suspension of payment in
New York. as has happened in every
panic In some respects our system
is the worst, and In some the best In
the world"
Would Not Work Here.
NOT mr. fa wreea ,na lnaieate that he did
which prevails in England Such a a
plan in this country, he thought
would result in a few gigantic banks
In New York Or Chicago with branches
in every city. instead OF cities like
Richmond having their local banking
institutions, managed and financed BY
local men. -
we want" he continued, "a system
that won't drop when a few SPECTATORS
get In control Of a few banks in New
YORK City. Why should the Whole
country r,l suffer for the fault Of {, few?
or payment. There is no acknowlcdged
leadership. such as is furnished by tho
Bank or England or tho Bank OF
france. These are not merely great
money-maklnS machines but the Bank
OF England la a financial signal light
k2r Great Britain. We have no leader