New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-23
TAFT SAYS CURRENCY
REFORM IS TOPMOST
Tariff. Railroad and Corporation
LEGISLATION Less important,
He Tells Bankers.
pl EADS FOR ALDRiCH PLAN
,,eclares Proposed National Re.
serve Association Contains No
Objectionable Features Urged
Against Central Bank.

Against Central Bank.
Nearly fifteen hundred members Of the
ysv York state Bankers Association.
! ..,v n them with their wives. gath
,,ed at the Oriental Hotel. at Manhattan
nsach. last nisht TO listen to and ap-
,,aud President Taft in carefully
ended speech on currency reform.
There Is no legislation-I care not
vbat il is-tariff, railroad. corporation.
~ of general political character. that
., all equals in Importance the putting
q, our banking and currency system on
the sound basis proposed in the National
Monetary Commission plan" the Presi-
dent said.
While declaring that he was a party
man by principle and dwelling on the
efficacy Of the party system in popular
government. he emphasized the fact that
the Monetary Commission was nom
rartissn one and praised that feature
.particularly in the drawing of the AL
drch bin
After going into details Of the or
sanzation Of the National Reserve AS
sociation he said: 1t is a careful and
well drawn plan TO avoid the concen-
tration of power either in Wall Street or
IN Washington" And he declared posi-
lively that the proposed association con-
tanned none Of the Objectionable feat
ures against which Andrew Jackson had
urged relentless war in his fight against
central bank.
y, is very difficult under the care
tally drawn provision" he said, Ito
show that the bank is under control Of
ary agency not working for the benefit
q the depositors. and il seems 10 me
rat Il is a system that ought TO COM
rsnd itself 10 all the interests of the
eountry. not only the bankers. but the
wage earners. the farmers and all others
Is we'll
The President said he sincerely hoped
that the state Banking , Association
would impress upon the people Of the
country that there was no other legisla-
ton SO important as that for the estab-
nshment of a sound banking ard cur
rency system.
The other speakers were Congressman |
Martin " Littleton. Judge Charles F.
Moore and Monsignor Edward w. Nc |
Carty. Luther W. Mott, the outgoing !
president of the association. was the |
toastn1aster. The others AT the guest |
table were w II. Bennett, who will be |
elected president Of the association to-
dey: Gwenn Crothers. Of Maryland; !
Charles y. Hiles, secretary TO the Presl- |
dent: Attorney General Wickersham, |
Major Archibald w Butt. the Presidents |
aid. Lawrence O. Murray, Controller OF |
the Currency: Controller Prendergast, |
c. F. Van Tuyl. Superintendent Of the |
State Banking Department; Congress
man + B Vreeland. Congressman Will
fam NJ Calder and Police Commissioner
Waldo.
Just Escapes Heavy Storm.
The President reached Manhattan
Beach Just before o'clock and just in
time TO escape the heavy storm that
struck the resort almost Immediately |
automobiles. one containing the Secret |
Service men and the other the Presi-
dent, with Attorney General Wicker |
sham, Secretary Hiles and Major Butt.
e dinner began at : O'Clock. and it was |
not until 10 o'clock that the President |
began 10 speak.
The President said:
Financial questions are perpieXing and
euSye ones. They are alluring as well. !
% not know any subject which in the past |
Aas Involved SO bitter discussion, has |
prompted 50 many different opinions !
among men. skilled and unskllled learned |
.ha unIearned. as that concerning the cur
'tncy and banking.
We have not nor than seven thousand /
rational banks. with a requirement that /
sseh bank shall hold p per cent Of ltS
deposits 10 meet its obligations TO It's de
INSiors. The minute that the call fol /
tlrrency becomes greater. and the PROB
sDe difficulty Of securing II threatens. each |
enters into competition with every other
renk o. increase its available cash re
sso1,ces. and thus there is at once addeG
|" lIe original cause for ln2dequacy ,oi
,rcncy the necessarily embarrassing de-
Hand FOR more currency by each bank; NOT
Lelause 30 j. needed for the community at
srge but i'm order 10 add 10 the cash
tTength - each bank. and tris probably
quite beyond its necessities. bank may |
nave commercial paper acquired in It's le-
tlumate business of the most git-edged
Nar&cter which. I'm ordinary times. II
VOulC promptly dispose of for cash with
on the slightest difficulty. and thus fully
eei III lis obligations 10 It's depc stois
Hlt which. without ability 70 transmute u
mlo cash. u Wow OF threatened money
tulneercy, IL holds almost as unavailable
a. ie@tns the claims OF its dcpositors as
werc real estate.
Anotfer GiHlcultv * In the making or
.t ni). eF ~ circulation correspond 10 the
ssl1ai and conservative needs OF trade
te iaFc a certain fixed amount OF silver
s.A ot gold and of greenbacks. and then'
.elsron secured on bonds deposited with
~ 5pt pt-rnWeIt. tho VARYING prOnt upon
ulca 20 enCh bank Il Is supposed VIII cn-
.@'se o. decrease the circulation accoTn-
"s ~ Oh, demands Of trade Under the
r.-it 81 stem the elasticity or such u
N!F'em las not equalled the public neces-
,S",s Tile personal profit OF each paIK
''r The system now I'm vogue IN the IN
N.asng and reducing Of the bank 'n-
'siaiDu Is not a sufficiently correct mraS-
't o. Tia Duiiic needs in this regard. Inc
..k Oi correspondence between the gen
20 paoitc need for issue or withdraWai
.fnk notes and the special motive ana
front of e0ch bank in issuing such notes
- te'naqs not 50 great as that Det"ern
- if,Oiic need for the concentration o.
'''e currency al particular places am
80. "fNcaiar purposes. ana the atItaI r.
4" u ifsDect 10 the reserve AZ linHtH,'u
-" interest OF particular banks unueT
&C. present system. but there Is Il SUP,
ial variance between reilraI Huh