The Sentinel=record., 1911-06-23

body WnOsp eco1iiiHenuati9n6 TT insure greatly to the benefn oi ehe people of this country.
 The president described at length the national reserve association which Senator Aldrieh, chairman of the monetary commission, devised in his tentive suggestions to the com mission The reserve association, the president said. Is the establishment of euvernment of the 7,eoo national banks of this country divided in fif- teen geographical divisions.
 "A careful examinat on of the con stitntion of the controlling board o' this national reserve association shows said the president, First that every bank. both as a unit and also in proportion to the capital, has la voice in the selection iof the gov erning board of directors of the bronch of the national reserve asso- citation, in one of the fifteen geo. graphical divis ons, More than this, hhe directors thus chosen are bound. to Introduce iuto the board consid erable number of persons who do not. depresent banking interests, but who represent industrial agricultural and
 bnslness interests.
 <The government, through the pres ident selects the governor and the. deputy governor and managers who are executive officers and are ex-of- ficio members of the board. In this
 way the banks and the government exercise divided control which can not under any system be transformed
 to the ambitions money interests of a
 particular part of the country. The board or directors is quite as certain to represent the whole busi- ness interests of the country as the house of representatives is to repre-  sent the nolitica, views of the coun- |lry.
 IL is a careful and well drawn plan 70 avoid the concentration controlling influence either in Wall strset or in
 isHashinston.
 The president referred to criticism of the plan in which reference was made to the battle Andrew Jaskson fought against the Bank of the United
 states. The president said the re- serve association lacked all the eIe- ments which made Jackson oppose the continuance of the United States lsbank.
 1t is true. he said. the national re- Iserve association is central bank 1 in certain sense. but 1t confines it's
 dealings to banks and not permitted
 to extend them to indixidtials except in its foreign exchange business where it may sell and buy foreign ex- Ichange and gold with a view to as- 1 s stenee of its general fiscal opera ltions.
 Thus it will be seen,v said the president. that this national reserve association is in a sense bank made up of all the banks of the country
 and controlled by no one set o4 banks. ta
 = It is," as I have said. "a republi-
 can form of government and under
 control of the .panlsing representa- tive from fifteen geographical diyis-
 ion of the country
 The concentration of power over the cash reserve of the entire nation al banking system of the country in the reserve associatio is exercsed by
 it. first through the fact that banks are allowed to deposit part of their reserves in the association; second, that the central reserve assoclation
 Is given power to supply cash or currency in the form of it's notes in exchange for approved commercial
 paper and is thus enabled to transfer the cash in that part of the country, where, in the Judgment Of the asso- ciation. it is needed It should he noted that this reserve association is required to fix from time to time d rate of discount Of prime commer- \ cial paper. uniform throughout the United States and that this Is great , ly in the interest of remoter sections of the country.