Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1912-06-27
GROUP ONE OF
STATE BANKERS
IN CONVENTION.
Fnanciers of This Section
Gather in Moline for Eighth
Annual Meet.
SPEND DAY ON THE RIVER
Feature of Program Is Address on
Banking Reform by Wisconsin
University Professor.
SPEND DAY ON THE RIVER

Members of group one of the Illinois
Bankers association met in their
eighth annual convention at Moline
this morning, and at 8 o'clock left TO
spend the day on board the steamer
W. W, which will take them TO Musca-
tine and return. The business session
OF the convention was held this morn
ing. and the afternoon was spent in
social way. In addition 70 the usual
routine of business, including reports
and election of officers, the program
included an address by W. A. Scott,
professor Of political economy al the
University OF Wisconsin. The subject
Of the professors talk was Monetary
Commissions Recommendations" and
his speech in part follows:
NEEDS OF COUNTRY VARY.
There IS a difference" said Profes-
sor Scott, "of hundreds of millions of
dollars between the amounts of money
required for the transaction OF the
business OF this country in the spring
and fall of the year and in midsummer
and mid-winter. The beginning of the
processes of agriculture in the spring
and in the movement of the crops in
the fall make enormous demands upon
our currency system 70 which there is
nothing corresponding in the other
seasons of the year.
by the statement that our currency
is absolutely unresponsive in It's fuctu'
atoms TO these needs. l mean that its
fluctuations have no connections what
ever with these needs, and that II does
not expand when these needs require
more for their satisfaction nor con
tract when they need less.
ELASTIC CURRENCY.
This lack OF elasticity in our cur.
rency system" said Professor Scott
''is responsible for two serious evils:
a retarding and handicapping of com
merce and industry during the seasons
of maximum demand (spring and fall
and the stimulation OF speculation or
the New York Stock Exchange ant
elsewhere during the seasons of min
imum demand
The weakness and folly of this sys
TEN" (scattered bank reservesD, saic
Professor Scott. becomes obvious
when one notes the purpose for which
bank reserves are supposed to be kept
They are designed to serve as a pro
lection IN time OF assault, as a mean!
Of meeting a run and of satisfying de
mands arising from unforeseen causes
II is analogous to that of keeping re
serves of water as a protection agains
fire.
MAKES 4 COMPARISON.
Imagine. II you can, a system of fir,
protection which would require eacl
householder 70 keep about his house
few barrels Of water and a few buck
cts 10 be used only in case OF fire
With such a system a very small FIR
starting az a single point might be ~
tinguished u the householder who's
home was attacked discovered il yer
early aud applied his small supply O
water at once.
"A little delay, however. would b
fatal and the house would have TO x
His neighbors would not and could nc
help him out by Offering him the Who'll
or a portion Of their reserve supply {
water because, forsooth they had az
cumulated that supply for the purpos
Of protecting themselves in simila
straits. and with a FIRE next door thei
need for such protection would be q
its maximum AT that very mOmen