The Marion daily mirror. (Marion, Ohio) 1892-1912, 1911-11-22
WORST BANKING
SYSTEM KNOWN
That is Way U. S. System
is Described by Pres.
= Schurman.
URGES COOPERATION OF BANKS
Sound Banking System is
Greatest Need of This
Country.
All, Other Questions Fall in
TO Background Compared
to This.
business of Country Has Undergone
Consolidation and Coordination
While Banking system Has stood
Stili--eldvocatcs Reserve Associa-
ton.
Rv United Press Wire.

New Orleans, La, Nov. Ell
have long been a disciple ana advo-
cate of the doctrine that the United
states has the worst system of bank
ing and currency in the whole civil
ized world. IL is impossible to esti
mate and difficult to eXaggerate the
magnitude of the losses which this
country has suffered from the de-
fects of its present banking ana cur
rency system. No other civilized
country is rich enough to have stood
itr
Jacob Gould Schurman, president
of Cornell university thus assailed
the American banking system in the
principal address before the Amer
lean Bankers convention today. He
placed banking reform above trust
regulation and tari ffrevision i'm inn
portance for the good of the coun-
try.
I'm comparison with a sound
banking and currency system pro-
posed changes in our tariff and trust
laws. important and urgent as they
may be in themselves, fall into the
background" he said. you will not
misunderstood me. | recognize the
propriety of bringing our tariff laws
into a closer harmony with the condi-
tions of modern industry ami COM
merce and the demands both of the
consuming and the producing pub
lie. And though | am firmly con-
vinced that business on a large scale
is absolutely essential to efficiency
in the modern world and should be
protected and encouraged by all
proper ana legitimate means, / hold
not less emphatically that the public
have a right TO be protected from op-
pressive monopolies,
"But whatever the losses incon-
Veniences and sufferings which may
be attributed to our tariff and trust
laws, they are far less than the losses
Inconvenience and sufferings which
are due to the imperfections of our
banking and currency system To
the supreme Importance of this issue
therefore, it is Indispensable that the
public should be aroused"
Banking System Antiquated.
President Schurman said that
banking and currency, "the invalu-
able and indispensable agencies OF
behind American business. He said;
Look at the magnitude OF the in
terests which are involved i'm the
question of banking and currency re-
form. The business of this country
last year amounted approximately to
$45O,O00, 100000. Four-fifths of thai
business was done by means of bank
checks, and of the remaining fifth
considerable proportion by means o
bank notes. A plan Of banking re
form, therefore aims at the perfect
ing of machine which engages II
the work of exchange to the extent o
over 1915, 200, 100000 annally.
'@rhe business of the country ha
undergone consolidation. co-ordina
ton and Capitalization at tremen
dous rate. But our banking system
is paralyzed by decentralization AM
lack of CO. coordination. To realiz
how antiquated tha. system is on
has only to imagine trade and com
merce conducted today as 1t was fit
or one hundref years ago. Yet tha
is the decentralized condition i
which under the present system on
banks are actually left"
Panics, he said, were nationa
disgrace They could be stopped
and they ought to be stopped
'sWhen panics come and wage
earners are thrown out of employ
ment, and farmers with good proI
critics cannot borrow money a..
moderate rate OF interest and no on
can get the cash necessary for IN
transaction of routine business an
checks are not accepted at face valu
the public must be made to under
stand that these evils in which a
alike are participating are due to
cumbersome, antiquated and unsc
entihc system Of banking and cul
rency and that they could he elm
mated with the reform of that syi
tenn"
Insurance Against Panics.
President Schurman said that NJ
lack of cooperation in America
banking brought on panics.
"In the panic Of 1907 there wa
abundance of reserve money; but
was divided, scattered, segregated an
subjected to local control. That ci
cumstance explains why panics ocel
in the United states with far great