The Vinita daily chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1902-1913, 1912-01-08
BANKING REFORM
FOR BUSINESS MEN

-edbue.I
1t has been said that the United
States has the worst banking sys-
TEN in the world" but l believe that
we have a foundation on which we can
build the best banking system in the
world This can be done without tear
ing down our present structure, and
without making any revolutionary
changes.
Our banking system, as it is now
organized, breaks down at the very
time when the countrys business is
most in need of the support banking
system should give. a sound banking
system should prevent money panics,
not breed them, as ours now does. 1t
is humiliating fact that ours is now
the only country in the world in which
money panics occur. Germanys re-
cent experience is an Illuminating ex-
ample of the manner in which a sound
banking system prevents panics.
The panic of 1907 brought home to
every business man and to every wage
Garner the fact that something was
radically wrong with our banking sys-
TEN. We had the same bitter expert
ence in '93 and in 70. eW are bound
to have it again if we do not profit by
these costly experiences, and correct
the evils that are apparent to all who
have given serious thought to the
fundamental relations between bust
ness and banking.
1t is inevitable that when a man
takes up the consideration of a new
problem, he is controlled by his past
experience, and | had not studied the
banking problem very long before my
point of view was adjusted by my
training as business man. Since
then, have endeavored to approach
the problem, not from the standpoint
of how radical revision of our laws
can suggest, and how many ideals
can be achieved, but rather in an en-
deavor to determine how much of our
present system is satisfactory, and
how little change need be made, for
change always means disturbance
The business man who seeks to dis
cover how our banking system may be
most readily improved must be inn
pressed by the fact that there is much
in our present system that is better
than any other system in the world,
that the defects, while radical and inn
portant, can be readily overcome, and
that the difficulties are not nearly so
serious as some believe. The impor-
tant things is to approach the prob
lem with an unprejudiced mind and
endeavor to satisfy the people of this
country that simple solution can be
found, instead of confusing them with
complicated reorganization.
The strongest feature of our present
system is its great number of independ-
ent banks, each serving separate
community with an intimate knowl-
edge of the business conditions which
surround them. The president and di-
rectors of each bank have their fingers
on the financial pulse of the commune
lity which they serve. They are in in
innate daily touch with every mer'
chant and industry.
A central bank, operating through
branches, and dealing directly with the
business interests of the country, can.
not take the place of the independent
banks which have been built up in
democratic American fashion. | be
Ilieve that it is a waste of time to con.
slider the possibility of establishing in
this country a central bank. The peo-
lple do not want central bank.
But the periodic breaking down OF
our banking system, with the result
ing enormous industrial losses, has
clearly shown the need in this ccun
try of banking cooperation While
we are fairly well agreed that cen,
Itral bank should not take the place OF
our existing banking institutions, we
have seen that the operation of central
organizations in other countries has
successfully established the fact that
some element of central control is es
lsential.
We have 10000 established banks
each doing efficient work, but we have
no method of bringing about united ac
ton in time of emergency. We have
10000 soldiers, and no general The
result has been that in time of panic
each one of our 10000 soldiers has
tried to stel the ammunition Of son'e
of the others, in order to fight his own
little battle. 1t is not necessary, how
ever to disband the army in order to
make it effective. Let us pres serve al
the advantages which we obtain from
our cvetem of indpnpndent banks and