Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-10-12
MAKES PLEA FOR LEGISLATION
FAVORABLE TO MERCHANTS
AND PRODUCERS.
DEFENDS COUNTRY BANKS
AND SCORES WALL STREET
Suggestions Of National Citizens
League For National Reserve Aaen-
ey Set Forth and Explained Before
illinois 6anskrs' Associatien-othe
News.

Springfield, ILL.,, Oct. 1.-THE fea.
ture of tonight's session OF the Bank.
ers Association OF Illinois was an ad
dress by John " farwell, president OF
the National Citizens League for the
Promotion of Sound Banking Sys
tom. His subject was The Impor-
lance of Monetary Reform TO Business
Men," and he said in part:
LAS business men deal both with
banks and wage earuers, they occupy
should see both sides of a banking
question. They are convinced that IN
Z; der a 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 to help bring about a correct so.
luton of the difficult problem. 1t is
i 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.
VoDt haiN ; t. h4ta ~fyo
ion and their vote that will settle the
question.
Tho Leagues Suggestions.
I'VE have no bill Of our own, and
| will present none to congress. but have
suggested the following principles on
! which we believe q sound measure
should be founded:
Il. Cooperation. not dominant CEN
tralization, Of all hanks by an evolu-
ton out Of our clearing house expert
| ence.
g. 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
oil, large Or small
=. 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.
"5. Elasticity of currency and credit
In times of seasonal demands and
stringencies with full: protection
against over expansion
Is. Legalization Of acceptance Of
time bills of exchange, in order to Gre
ate discount market at home and
abroad.
u. The organization Of better bank
ing facilities with other countries. to
aid in 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-
serves as make them available wher-
ever needed, and also create conf
dence in our banking stability at home
and abroad
What the syetem Must Be.
What are the troubles today? The
panics of 1893 and 1907 showed every
thoughtful business man that some
thing was wrong with our monetary
system. We would all agree, l think,
In saying that we have many Of the
best banks and bankers in the
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.
ioh
BILE against the disintegrating forces
OF panic. At such times we are all
aware that the tendency, instead of be.
ing toward union and common defense,
is toward individual self-preservation
without regard for any Ole else.
"As league We do not believe in
central bank doing gen
eral banking business, like the
Bank of England, but we do believe in
what might be called national re-
serve agency. controlled and managed
SO as to represent the democratic spirit
and the sound common sense Of this
nation.
by that. mean that the majority
of the directors of the agency In all
its 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 restrc
tons on the voting power Of certain
forms of chains Of banks might also b.
considered with the same purpose ir
mind. Such arrangement would keep
the agency free from possibility o:
control by any class or section of the
country and make 1t servant Of al
the banks. As this is most impor.
tant point any other better or more
complete suggestions would be wei
come With headquarters in Washing
ton, 1t would have Is or more branches
in the various sections OF the
country, and 1t would be owned
by all the banks of the country. both
state and national 1t should not be
organized to make money. but to rem
der public service. The stockhold
ers would be limited in dividends to
or 6 Per cent, and all further earn.
Ings, after 20 per cent surplus had
been accumulated, should go partly to
the government and partly to sur.
plus.
Functions Of Reserve Agency.
Ito hold. without paying interest. al
cash reserves Of the subscribing banks
reserves which are Of no daily use
to bank. because the law says they
cannot be drawn ucou.