Audubon County journal. (Exira, Iowa) 1884-1993, 1911-10-26
.FARWELL URGES
MONETARY REF0R
For Laborers, Merchants {
Producers.
DEFENDS COUNTRY BANKS

Suggestions Of the National Citizens
League for National Reserve
Agency Are Set Forth and
Explained.
Springfield, ILL.,, Oct. 1.-THE tea
ture of tonight's session of the Bank
ers' Association of Illinois was an adj
dress by John v. Farwell, president Of
the National Citizens League for the
Promotion of a Sound Banking Sys-
tenn. His subject was The Impor-
lance Of Monetary Reform to Business
Men," and he said in part:
AS business men deal both with
banks and wage earners, they occupy
position from which they can or
should see both sides of banking
question. They are convinced that un-
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,
l am sure, that such panics inture
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
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.
1t is their problem, and 1t is their opin.
ion and their vote that will settle the
question
Tho Leagues Suggestions.
eve have no bill of our own, and
will present none to congress, but have
suggested the following principles on
which we believe a 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
20. Protection of the credit system
of the country from the domination of
any group of financial or political in
terests.
SO. Independence of the Individual
banks, national or state, and uniform
treatment in discounts and rates to
all, large or small.
"a. Provision for making liuuid the
sound commercial paper OF all the
banks either in the form of credits or
bank notes redeemable in gold or law.
full money
IS. Elasticity of currency and credit
in times of seasonal demands and
stringencies with full, protection
against over expansion.
"6. Legalization of acceptance of
time bills of exchange, in order to Gre
ate discount market at home and
abroad
a. 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 System 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-
tenn which makes united action posi-
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 one else.
AS league we do not believe in
a central bank doing a gen.
eral banking business, like the
bdnk VI EHSldHu, Out 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 ali
Its departments, should be elected by
the banks as units without any refer.
ence to the amount of capital stock
and minority only by votes accord
Ing to capital stock. Other restric
tons on the voting power of certain
forms of chains Of banks might also be
considered with the same purpose in
mind. Such arrangement would keer
the agency free from possibility Of
control by any class or section of the
country and make 1t servant of all
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, it 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