Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1911-11-22
Members Of American Asso-
citation at Second Days
Meeting Were Urged to Use
Their Influence to Pass Bill
Reynolds Of Chicago Declarss
That While business Would
BE Centralized II Would
Not Centralise the Power.

Not Centraliae the Power.
tny nsesisx He-sss =. .. s.~ss~s s<s<e,
New Orleans, Nov. 22.-uencFai ap-
pvoval OF the so-ca:led AIdfich vsan
Tor the reformation OF the nntloaal
monetary syslem. was given by lead
ing bankers who addressed The sec.
ond days session OF the thirty seventh
annual convention OF the American
sankers' association today. The mem.
befs were urged TO nse their lnflu.
cnce In sccurias The plans adoption
by congress
"If the proposed Natlonal Reserve
association plan becomes a law. u will
provide an lnsiltEtlon which Will be
nsle 10 extend credit In proportion TO
all the reasonable needs of hnslnnaE
In this country aud ai the same giino
safeguard against the over expansion
o! credit" declared Geo. ~ Reynolds,
president OF the Continental aud Con.
metciAl National fiank OF Chicago.
While tbs proposed p'an II not aide
departure from the present system,
hu snfn 4 would correct lhe present
piap's weaknesses aud furnish the
inachl1<sy for the natural ehb and
How " h>i<iarsH while u provides for
centfasizlnx the resources OF the
coun'rs. \ fid not provide iof cen.
italixing lhe pewef Tie continued;
In Wow OF the agitation tor eur.
rcney legislation which has been go
Ing on dufinG the past three OF -four
wears. uf sinre the psaic of 1897.
which bgguEbt the citizens OF this
country to a realisation of the press
Ing need tOg caftspey reform. ! as-
sumo thnt tbs bsssincss public, Eencf'
ally. rceognixes thc eeaknesscs aud
.ths deDeiencSes df ear prcscn, bank.
inE ana cngwpey SYsfenl. and shall
moi, Therefore, MAKE any extended
reference 10 II.
The ssstsin' n unscientiiic and the
fact that II has served us AZ well as u
has. and thar We have not had more
frequent panlcs Of seasons Of severe
depression IN business. u due very
largely "a the growing usc OF cnrdii
in business Transaction In this coun
Try.
~ We safeguard our business
against recurring panlcs and seasons
Of extreMe depression. We mus, have
system OF currency and banking tor
tho proteriion OF credit by meaes OF
which ouT liQpld credits can bc used
and ckchanEed thuA lsiakihs u pos
alble when needed. for a hank 10 con-
veFt lts liquid assets which consist
10 great part 0f n1lce OF solvent con
ccrns. Into other forms OF credit. even
70 the extent OF 5aing able TO convert
same into currency or bank notes
when necessary
This n absolutely impossible un.
der our present system lecanse OF tho
insias,iclty OF our hond.seeured Ma.
tional Hank notes
Thus you viii see that II bank
cannot ccnsert It's liquid assets into
bank credits or bank notes in times
Of 1eed that bank must. II called up
on to do 20, pay iawfHl money against
such credits. thereby iaipairins us
reserve.
'This condition naturally. restricts
the amount oi credit rank can ex-
tend, no snalter how imperative the
need tor credit may be-.
IN "a to correct these ineffiriencirs
IN oar present banking ana currency
system, and 10 protect credit IN this
country through making the credit.
hacked bs the solvent debtor ea.
ehangoahie for such forms of credit
aR the holder OF oHner OF the credit
may demand. that We need currency
iegislalson. The inauguration OF q
system OF currency aud banking such
as VIII give 10 business these iacili.
tlce II tho basis OF the plan proposed
Tor the organization of the National
Reserve Association OF the l'aiscd
States
While Il provides for centrallxlng
he reserves of the country u doea
not provide tor cenlgnlizinR the pow
err The eAse .nhliue OF snah large r..
aersea Nlll create an increased ahlls.y
10 extend credit. for thar power viii
be doetniraliked and be- turned hacl,
20 all of the hanks Instead OF remain.
ing Ia the hnnds Of bankers Ia The
Central Heserse cities as II nov the
case,
To secure credit now The nubllc
must drpeud upon The ability. aud the
lncllnallpe of baakels in those elliss
70 fulrlsh " bat u the Reserve asso.
citation II formed The country banker.
as well AZ the city banker. viii l,e
given the rishi by law. A. he will hyI
ting very nature q the plan. an a..
sufanrr that he can secure, through
rcd'fcouuiink papef with the Reserve
association, the credit necessary for
The pfoisciI~n Of the industries OF his
community Nhen they are conserve
ilvely managed therefore ihe plan.
While providing iof llt centrnllxIns
oI out reserves, Dreyidcs fof decun.
trallzaiion 81 eredIi which. III viee
r. Il
tcons|ni'sd on pase !, eelumc ~