Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1912-05-04
MACvEAGH FEARS .
PANIC MAY COME
Secretary of Treasury Urges
Quick Action on Monetary
Ccmmissi Report.
MONEY DISTURBANCES
Av0lDABLE EVIL, HE SAYS
Uzal II. McCarter Calls Pro-
posed Financial Legislation
Magnificent Creation"

ATLANTIC CITY, May 4-Declarinc
lnae tue monetary question was of far
nore vital Importance than the tariff is
: ani mining that delay might bring
another financial panic. in an address
iast night before the New Jersey Bank
ers Association Secretary of The Treas
u,y rankin MacVeagh made a strong
pea Tor congressional action on the re-
said: s
One of the things which impresses me
most Keenly about our monetary reform
problems Is tha Congress is not l~egisiat-
ing anout them, but is still putting them
on, ana that there is no end in sight.
aiter waiting many, many years we
nnaliy got a Monetary Commission. The
monetary Commission worked for three
years; then Congress set a limit and de-
manded a report on a specific date In
january last.
fou would think from all these pre-
summarizes that we were at last to get
some action. but the thing lies dead.
with scarcely anybody speaking of it,
lie dwelled upon the danger of delay
ana urged the necessity Of immediate
action. He continued:
Panics an Unnecessary Evil. d
One of the greatest results of the
Judy of monetary facts and questions
uurlng the last few years Is the accept
hnce or the fact that pnniQs are not
necessary; that they are a matter Of
national choice: that they are a prevent
able disease. And the question is now
up before the American people in all its
piainness and simplicity and frankness.
WIN they continue to nave panies or
VIII they choose m ohaIiol thavn1 1el.at
question is distinctly embraced in the
proposals now before Congress and be.
fore. the American people. 1t ie that
question especially which gives to
monetary reform its pressing, its i'm
peratiye. it's insistent claims to imme.
date action.
Every year should be saved. every
month should be saved. every day should
be saved to the American people from
the chances of another wanton and un-
necessary disaster like those of 1893 and
1907. We might az well refuse to learn
the lesson taught IFS by the awful dis
aster of the Titanic as to refuse to be
taught by the awful disaster of the panic
of 1907. 1t is not intellectual, 1t is not
intelligent, 1t is not civilized to diIly-
daily over such questions.
THE national banking system should
be democratic, and not oligarchic, in
order that 1t may help to preserve the
local Independence and the local spirit
that Is SO necessary to the development
OF the national life" .
Whether the trust companies of this
State should become members of a Gen.
trail Reserve Association, in the event
of favorable action on that measure by
Congress-. was discussed at some length
BY Uzal II. McCarter. president of the
Fidelity Trust Company, Of Newark. "A
z xua-A
: Explaining thai favorable action .hy
Congress on the bill, authorizing the
formation OF the proposed reserve asso.
citation Is not expected at this session,
Mr.. MeCarter briefly reviewed the facts
and conditions leading up to- the intro
duction OF the Measure by the Aldrich
commission. In its initial appearance,
the Fidelity president explained, the bill
confined its benefits to national banks.
subsequently IL was amended to include
State hanks and trust companies, pro-
vided that they complied with all its re.
quirements.
After a careful study of the bill Mr..
McCarter said he Is convinced that 1t
is "a wonderful constructive piece of leg
islation. 1t seems, he said, to pro-
vide for every known or unlOoked-for
trouble, and ii apears to furnish a mag
n~iicent banking system for the country
On the Question of New Jersey trust
companies becoming members of the as.
ISOLATION, however. Mr.. McCarter was
inclined to hesitate. In reserve and GEN.
trail reserve cities. he said, trust COM
panies will probably join the associa.
tfon. assuming that it is formed. In
those cases, he explained, the moneys
Kept with these companies by county
trust companies can be counted as part
of the legal reserve of the depositlng
institutions. With New Jersey subscrib-
ing companies, on the other hand, the
money which they may keep with any
other subscribing institutions cannot be
counted as part of their reserve. That
fact, and it's results, Mr.. McCarter de-
Cleared, would be serious to the Fidelity
Trust Company, and probably to other
similar concerns in New Jersey.
Magnificent Banking Creation:
As it stands, the speaker said, the
Aldrich bill is not designed to meet the
requirements of the old-line trust COM
panies, which do not buy commercial
: and for those who do that busi-
the advantages. of membership in
III proposed association are not marked.
Another reason for his hesitation as to
the wisdom Of New Jersey companies
Joining in the association, Mr.. McCarter
explained, is the act hat hat course
and its effects would take out OF the
State a large amount of money that
is now kept here on deposit as reserves.
IL, the speaker said in conclusion, the
failure of the trust companies through
out the country to join the association
1eopardized the successful carrying out
to its fullest function this magnificent
creation of a national banking system"
or If their failure to join would disturb
their present methods OF securing finan.
cial assistance. when needed, he would
be In favor Of subordina ting individual
views to the good of the many.
Il have" declared the Newark bank
president, entire confidence in the
LOYALTY and devotion Of the trust COM
nanies to their country's needs. and I am
satisfied that, II the occasion arises,
they will join in with their sister insti-
S1tlons in favor Of any legislation look
ing TO the safety of the nation. regard
less Of the effect that enactment of this
kind may have upon individual cases"