Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-10-12

and oct 40 fiscal aG0At q ~ govern.
ment. II would accept no deposits
from any individual. arm or corpora
ton.
Under some equitable agreement 70
take over and retire all national bank
note issues and substitute ito own
notes therefor, based on the same
bond and also on its other assets.
1T should not lend on bonds. but
should give all subscribing banks the
privilege OF re.discounting. at Same
rate to all. any good commercial pa
per having not over % days to run.
thus making liquid the good assets OF
any and all banks
1T might also re-discount CONNER
! cfal paper having more than rs days
| and not more than four months to run.
provided 1t was guaranteed by local
institution, to one OF which all banks
| IN each district would belong. 1t could
! also do business in foreign exchange
| and in various forms Of acceptances,
as might be worked out in detail.
Payments would be made to banks
from their balance in cash or national
| reserve notes.
Check for THE Dangers.
"Tle danger of an over.expansicu
checked by tax beginning when the
ratio OF reserve to all liabilities reach
| ed percentage to be fixed by experts,
| and Increasing as the ratio OF reserve
decreased until it arrived at a figure
which would be SO large as TO be ef
fectfve as final check. The brakes
would he put on SO gradually that
there would be Eo sudden lar, which
would scare all the passengers and
! break few bones.
This tax would not be on the notes
themselves, but through the raising
OF the discount rate, would fall on the
banks in proportion to the amounts re-
discounted by each baak snd charged
weekly as long as reserve was below
the required amount.
The clearing house certificate plan
or its further development in the Al
| drich-Vreeiand act. would undoubtedly
work We'll mechanically, as far as II
could go, but psychologically it would
surely prove failure. because it calls
the attention OF every one to the fact
that the regular system has broken
down.
THE League VIII not favor a bill i'm.
properly safeguarded as to the control
and wishes additional concrete sugses
lions from any one which will ahso-
iutely prevent such an agency from
getting into the hands of any section
or class. and at the same time keep
1t clear of political influence.
Wouldn't lnjure Smaller Banks.
LAS to the injury to the smaller
banks. l fail to see how such thing
is possible. Now they go to their cor
respondents in the reserve cities 10:
re-discounts. With Jointly owned
agency to re-discount their paper they
would have one more institution to 20
to. and that an organization in which
they had a governing interest, and
where, by provision of the law, all
would have to be treated alike. This
favors actual sales of goods. rather
than speculation on Wall street, or
elsewhere. and also helps the smaller
town because banks in larger ccnters
are apt to have a much larger proper.
ton of bonds and less commercial IA.
per than the banks in smaller COM
munties.
TT would decentrolize control Of
credit and give to each section Of the
country its just proportion Of credit
facilities. Nothing else would be al.
lowed. since publicity would prevent 1t.
To my mind. 1t certainly assists the
country banks more than it does the
metropolitan banks. In that way IL
builds up the country town and by pre-
serving the independence OF the farm
ers and small merchants helps to Sc
cure the permanence Of the republic.
Times are none too good at present
for the average business man and
many a person is out of a job be-
cause Of cu-tailment in his line. I'm.
der such circumstances 1t does seem
as though the voters. and through
them congress, could be brought to
understand that nothing is so fun
damentally necessary to produce GER
tain and unbroken prosperity as a
good banking SYSTEM 1t is the foun.
dalton OF all credits and all business
and certainly should not be pushed
aside and delayed for other issues
many less important. It should be
gress.
As have said in the beginning. to
the business public this subject is of
greater importance than any other
now before the American people for
consideration. I believe our interest
should be aroused in it, not only on
account OF the benefits to be derived
from it ourselves, but especially on
account of the great good that will be
done to the wage earning element in
our country.
IN times of panic most solvent mer-
chants, bankers or farmers go on with
very little change in their mode Of liv-
ing, excepting. perhaps. the cutting
cfy of few Injuries. but the burden
falls heavily on the working classes,
who are thrown out OF employment.
through no fault Of their own. and find
they cannot obtain the necessities of
life Members of the family become
i'll, they get into debt. and soon And
themselves in difficulties and trouble
from which 1t takes them years to
emerge.
Personally believe a plan Of this
kind will do many times the real good
that the charitable organizations in
the country can do towards relieving
much of the distress occasioned by
such panics The work Of charitable
organizations simply aileviates to a
small degree the effect Of the trouble:
sound banking system would, to
Particularly the Ladies.
Not only pleasant and rekeshin1 Ia