Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-12-06
sdent Discusses Fiscal, Judicial Military and nsu|a Affair;


Continued From First Pase.)
general seems to me to furnish the basis
culties. feel that the government
might very properly be given greater
voice in the executive committee of the
board of directors without danger of In
jecting politics into It's management. but
7 think the federation system OF banks Is
a good one, provided proper precautions
are taken to prevent banks of large CAPT.
tai from absorbing power through owner
ship of stock in other banks. The OBJ
jectionS to central bank 1t seems to me
are obviated If the ownership of the re-
serve association is distributed among all
the banks of a country In which banking
is free. The earnings of the reserve as
ISOLATION are limited in percentage to
reasonable and fixed amount and the
profits over and above this are to be
turned into the government Treasury. 1t
is quite probable that still greater security
against control by money centers may be
worked into the plan.
Certain ii is. however, that the OBJ
jections which were made in the past his
tory of this country to central bank, as
furnishing a monopoly of financial power
to private individuals. would not apply
to an association whose ownership and
control Is so widely distributed and is
divided between all the banks of the
country. state and national on the one
three department heads and his controller
of the currency. on the other. The ancient
hostility to national bank. With Its
branches. in which is concentrated the
privilege of doing banking business and
carrying on the financial transactions of
the government, has prevented the es-
Establishment of such bank since 1t was
abolished in the Jackson administration.
Our present national banking law has
obviated objections growing out of the
same cause by providing free banking
system in which any set of stockholders
can establish national bank If they
comply with the conditions of law. 1t
seems to me that the National Reserve
Association meets the same objection in
a similar way; that Is. by giving to each
bank, state and national. in accordance
with its size. certain share in the stock
of the reserve association, non-transferra-
BILE and only to be held by the bank while
it performs its functions as a partner in
the reserve association.
1.-The report of the commission recon-
mends provisions for the imposition of a
graduated tax on
President the expanded cur
Commends Plan. oharsc.or as ="
furnish a motive for reducing the issue
of notes whenever their presence in the
money market Is not required by the
exigencies of trade. In other words. the
whole system has been worked out with
the greatest care. Theoretically 1t pre-
sents a plan that ought to command sup
port Practically It may require modifica-
ton in various of its provisions in or
der to make the security against abuses
by combinations among the banks i'm
possible. But in the face of the crying
necessity that there Is for improvement
in our present system, 1 urgently invite
the attention of Congress to the proposed
plan and the report of the commission.
with the hope that an earnest conSid-
GRAFTON may suggest amendments and
changes within the general plan which
will lead to its adoption for the benefit
of the country. There is no class in the
community more interested In safe and
which will prevent panicS and automat-
ically furnish in each trade center the
currency needed in the carrying on OF
the business at thai center, than the
wage Garner. There Is no class in the
whose experience better quail
ifies them to make suggestions as to the
sufhciency of a currency and banking
system than the bankers and business
men. Ought We, therefore, to ignore
their recommendations and reject their
financial Judgment as to the proper meth
cd of reforming our financial system
merely because of the suspicion which
cAistS against tIeIn III the minus Oh MANY
of our fellow-citizens? Is 1t not the duty
Of Congress to take up the plan sug-
gested- examine il from all standpoints.
give impartial consideration to the testi-
mony of those whose experience ought to
tit them to give the best advice on the
subject and then to adopt some plan
which will secure the benefits desired?
"A banking and currency system seems
far away from the wage Garner and the
farmer. but the fact Is that they are
vitality interested in a safe system of
currency which shall graduate its vol
ume to the amount needed and which
shall prevent times Of artificial stringency
that brighten capital. stop employment.
prevent the meeting of the pay roll, de-
stroy local markets and produce penury
and want.
Il have regarded 1t as my duty in for
mer messages to the Congress to urge the
revision of the tariff upon
Inc principles of protection. 1t
Tor;% was my judgment that the
customs duties ought to be
revised downward but that the reduction
ought not to be below a rate which would
represent the difference in the cost OF
production between the article In ques-
ton at home and abroad, and for this
and other reasons 1 vetoed several bills