The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-10-08
ONE STRONGHOLD
FOR RESERVE CASH
League Advances Plan
to oto > "Senseless
Panics. {"
DOES NOT FAVOR
CENTRAL BANK
Neither Is Aldrich Currency
Plan Approved--In Proposed
Scheme All Cash Reserve
Would Be Deposited in Ma
tional Institution, With
Capital of $500, 100000.
Especial to The Times-pispatch.l

| Especial TO The Times-Dispatch.J
New York, October John Claim.
| president of the New York State Ma
! tional Citizens League. announced to-
! day that the league is in favor OF a
national reserve associat'o on that would
/ take full control of the financial situa-
/ ton of the United States by tho amass-
! ing in one stronghold the reserve OF
cash now held in every bank in the
f! country. The object of the league Is
! to arouse sentiment for - rGorm OF
! the currency and banking laws and
! stop senseless panics The headquar
| ters of the National Citizens League
| Is in chicago. Following arc the off,
| GERS and directors:
John V. Farwell. of John V. Farwell
! Company. president: John Burton
Payne. of South Park Commission.
| vice president:J. Laurence Laughlin. OF
the University of Chicago, chairman of
! the executive committee; a. c. Bartlett,
| of Hibbard. Spencer. Bartlett & Com
pany. treasurer: Murray S. Wiidman,
of Northwestern University. secretary.
! Directors-B. E. Sunny, of Chicago
| Telephone Company; Cyrus II. McCor-
| mick. of International Harvester Com
| pany Harry a. Wheeler. of Chicago
! Association of Commerce: John G.
! Shedd. of Marshall Field & Company:
| r. a. Delano. OF the Wabash Railroad
! Company; L. w. Upham. OF the City
| Fuel Company: Marvin Hughitt. of the
/ Chicago and Northwestern Railway
! Company Julius Rosenwald. OF Sears,
! Roebuck & Company: a. ~ Spraguc
/ of sprague. Warner s. Company: Clyde
! NJ. Carr, of Joseph I. Ryerson & Son;
/ h II. Armstrong, of Reid, Murd och &
/! Son; Graham Taylor, OF Chicago Com
/ mons: c. II. Wacker. of United Chart
/ ties. and Joseph Bach. of Siegel, Cooper
! Company.
] Establishing stnte Leagues.
!. Branch leagues with similar sets of
! officials are being established In Buff
| falo. Syracuse. Utica and Albany. Other
/ State league organizations are under
/ way in Connecticut. Delaware and
/ Maryland.
! The panic of 1907 was as unneces-
/ sary as 1t was DISASTROUS" said Mr..
I Chaflin. 1T disclosed weaknesses In
/ our banking system, which all admit
! can be and must be effectively cor
/ rected. The country is still suffering
/ from the effects of this panic. and tho
small businesses are suffering. more
! than the larger ones.
I. There Is no exchange of any kind
/ eral political character that at all
equals In importance the putting of
4, our banking and currency system on
sound basis.
/ This movement is non-partlsan and
! must be kept So The problem is too
/ vital and pressing to be made the
football of party politics. 1t must not
| matter has been"
! THE National Citizens League" Mr..
! Chaflin added. SIS altogether indie
! p ndent in every way We recognize
/ the able and thorough work done by
! the Monetary Commission, but the
league has no cut and dried plan to
/ offer
There are certain basic principles
! of reform upon which we are agreed
Further than this we Want sugges-
! tions from all sections and all classes
| TO the end that the remedial Iegisla-
| ton that is finally adopted by Con-
| gress shall reflect the needs of tho
country a large.
| No Central Bank.
I'VE do not advocate n central bank.
doing a general banking. business: but
! do believe in what is called a
National Reserve Association, con-
trolled and managed so az to represent
| the democratic spirit and sound COM
\
! when the Weaknesses of our pres
! emit system are understood and the
| principles of sound finance are made
! clear to all and we hope to make
| them so. have confidence that the
| legislators will devise the right kind
of laws and that the people will want
| these laws enacted"
] IT is sought through the National
! Citizens League plan to take full con-
i troll OF the financial situation of the
| whole country by amassing in one
| stronghold the reserve cash now held
! by every bank in the country. Notes
! issued by national banks would be
| thing of the past Banks would no
: longer hold their own reserve cash
/ Instead. they would deposit this re-
serve with the National League. which
| would retire the individual bank
notes and issue National League notes
/ to each bank covering the amount of
/ reserve deposited by that bank.
Although it is not made clear, the
! understanding is that the temporary
! directors would retire in favor OF new
: men to he elected by the banks them.
! selves. There would he two classes
| of dlrectors--one elected by the banks,
! who would be in the minority. and
! the other elected on the plan that each
bank would be represented by a unit
/ regardless OF Its size. Presumably
! these would be the controlling direc-
tors of the National League II is
provided that in elections the stock
of any bank owned by a. holding COM
pany or a corporation could not be
voted
State and nationaf banks would be
expected to subscribe for stock in the
al on kn he nf