Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1911-10-25
For LabOrers, Merchants and
Producers.
DEFENDS COUNTRY BANKS
Suggestions of the National Citizens
League for National Reserve
Agency Are Set Forth and
Explained.


lance of Monetary Reform to Business
Men," and he said in part:
"As business men deal both with
banks and wage earners, they occupy
position from which they can or
| should see both sides of a banking
question. They are convinced that I'M
der sound system, extreme panics
should not occur, and that some
scheme can be devised so that bust
! ness can proceed without the jars and
breaks which ruin business houses and
throw many innocent people out Of en-
ployment
While we fully recognize that all
must suffer together, it could be shown,
i am sure, that such panics injure
banks less than business men, and
heads of business houses less than en-
ployes. 1t is, therefore, Of greatest
interest to the latter classes to study
this subject of banking and currency,
and 10 help bring about a correct So
luton Of the difficult problem. 1t is
for that reason that the National Cit
liens League was formed, at the in
stance of the Association of Commerce
of Chicago.
while we do not refuse the coop
GRAFTON Of Bankers, we are especially
interested in organizing the business
men and men of all occupations, wheth-
er farmers, mechanics or daily laborers.
1t is their problem, and it is their opin-
ion and their vote that will settle the
question
The Leagues Suggestions.
1--WE have no bill of our own, and
! will present none to congress, but have
| suggested the following principles on
which we believe a sound measure
should be founded:
Il Cooperation, not dominant cen
tralization, of all banks by an evolu-
ton out of our clearing house expert
! ence.
"2. Protection of the credit system
Of the country from the domination of
any group of financial or political in
terests.
"3. independence Of the Individual
banks, national or state, and uniform
treatment in discounts and rates to
ALL large or small.
a. Provision for making liquid the
sound commercial paper Of all the
banks, either in the form of credits or
bank notes redeemable in gold or law
full money.
50. Elasticity Of currency and credit
in times of seasonal demands and
strfngencies with full protection
| against over expansion.
&C. Legaization of acceptance of
time bills of exchange, in order to Gre
ate discount market at home and
abroad
~. The organization of better bank
! ing facilities with other countries. TO
! aid I'D the extension of our foreign
trade
These objects should be carried out
! through some national cooperative
agency, under government supervision,
which would so dispose of cash re-
I serves as make them available wher-
ever needed, and also create conf.
dence in our banking stability at home
and abroad
What the System Must Be.
What are the troubles today? The
| panics of 1898 and 1907 showed every
thoughtful business man that some
| thing was wrong with our monetary
| system We would all agree, / think,
| in saying that we have many of the
/ best banks and bankers in tha
world, but when. in panics, such
! banks have to refuse to per-
! form their functions, and all seem
near chaos, we must be equally ready
| to admit that we have the worst bank
/ ing system in any civilized country. In
| fact, the trouble is we have no sys-
! tenn which makes united action posi-
| BILE against the disintegrating forces
| of panic At such times we are all
+ aware that the tendency, instead of be-
! tho fCvr ND
1 is toward individual representation.
I without regard for any one else.
"As a league we do not believe in
central bank doing a gen
/ eraI banking business, like the
\ Bank Of England, but we do believe in
! what might be called a national re-
serve agency, controlled and managed
/ so as to represent the democratic snirit
and the sound common sense of this
nation
! "By that, I mean that the majority
| of the directors of the agency in all
/ it's departments, should be elected by
the banks as units without any refer
ence to the amount of capital stock.
and a minority only by votes accord
ing to capital stock. Other restric-
lions on the voting power of certain
forms of chains Of banks might also be
considered with the sans purpose in
mind. Such arrangement would keen
the agency free from possibility of
control by any class or section of the
country and make it a servant of all
the banks. AS this is a most impor-
! tant point any other better or more
complete suggestions would be vel
come. With headquarters in Washing
ton, it would have Is or more branches
! in the various sections Of the
country and it would be owned
by all the banks of the country. both
state and national It should not be
organized to make money, but to rem
der a public service. The stockhoId-
ers would be limited in dividends to 5
or per cent, and all further earn
ings, after 20 per cent. surplus had
been accumulated, should go partly to
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