The Birmingham age-herald., 1912-03-05
HILTON DISCUSSES { BANKING REFORMS Report of Commission Will
 Benefit South
  WILL LOWER INTEREST Says Citizens Seem Naturally An tagonistic and Object of League
 Is to Show Benefits of the
 Proposed Legislation
WILL LOWER INTEREST

IS 10 cnOM DeHe1tS Ol tnt
 Proposed Legislation
 McIane Hilton, the well known Pell City banker while in Birmingham yesterday spoke of the efforts being made by the monetary commission to reform the cur rent system of banking. Of the National Citizens league in Alabama John L. Kaul is president and MT. Triton secre-. tary. The idea of the promoters is to or gazine the entire state of Alabama Of the work of the league MT. Hilton is en- thusiastic. He stated:
 ''The current magazines for March give an idea of the widespread interest being taken in what promises and ought to be the next great reform, banking and eur sency. This interest was of course aroused by the recent final report of the monetary commission filed with Congress. The monetary commission has performed splendid work in Investigating foreign fnancal systems and showing up the enor- motfs advantages of English and French and German methods compared with our own crude andAantiauated system.
 No Progress Made
 Banking, as a system has made little progress since the adoption of the na- tonal bank act nearly a half century ago Since then business, commerce and agri- culture have expanded enormously. Peo- ple who had money in bank, or who were the owners or employees of business con cerns had the defects of our system called to their attention in very striking fashion in 1907, when there was q general suspen- sion of specie payments. That the loss and ruin were not as great or greater than during tile former panic in 1893 was due solely to the fact that the banks had learned the value of cooperation and the people, bank patrons, were cool enough and sensible enough to understand and submit to the form this cooperation took
 'T have been studying very carefully fthe report of the monetary commission and believe if it's recommendations are enacted into law. with the few changes bound to come with further analysis, the south will receive the greatest bene1;:s from the plan, much more so than the east, which is at present all powerful Indeed, the fundamental object of the plan is to decentralize cash and credit from New York to take from New York the power 1t now yields over other sec tions of the country. The plan is suifi- ciently safeguarded to prevent political control, as was the case with the govern ment bank in Jackson's time, as well as to prevent further financial control by allied nonied interests concentrated in New York. The plan preserves the inde- pendence of the individual banking units. state and national, attan times, bpt4is de- vised so as to permit of joint action when crises come such as that of 1907.
 Benefit South
 Unless I mistake the purpose and objects of the Legislation proposed, two of it's immediate effects will be to low CT interest rates in the south and to enable southern banks to borrow money as easily from November to March to carry the cotton crop on as they are now able to do from March to No vember to raise the crop. What this means to the south is apparent enough and yet the south promises to be the greatest stumbling block 10 the reform mea sures now under consideration.
 This is due to our natural hostility to a government or central bank and also to the prejudice existing against Senator Aldrich. who was a member of the monetary commission. The bill is not an Aldrich bill, nor Is it indeed the monetary commission bill though the report had the approval of and was signed by every member of the com mission, 19 in all-10 republicans and seven democrats. The bill is the re- suit of the accumulation of the eX- perience and wisdom of the past 10 years, gathered together by the bus mess men of the nation, some of whom were working in this direction even before Senator Aldrieh entered public life. It is not a central bank either.
 Object of League
 "To arouse interest in this reform and to educate the people as to the imperative need of some legislat:on or this nature, the National Citizens league has been formed with headquar- ters at Chicago This league has the patriotic support of many of the lead ing business men in America and it's work is intended mainly for the ben eft of other business men. rather than professional politicians or bankers. The league is now well organized in every state in the union ana its membership is rapidly increasing. .n Alabama MT John kaul of Birmingham is presi- dent, and l have been requested to serve as secretary. It is our purpose to organize every congressional dis trict in the state and to hold a series of meetings from Te.nessee to the gulf. Each district wiil have it's own officers to look after the interests of the league in connection with the state board of directors Prof. J. Law renee Laughln, possibly the foremost economic expert in America. the head of the department Of economies of the University of Chicago, will address the convention of the bankers association to be held in May rt Mobile, after which l look for rapid extension of the movement in Alabama
 Membership to the league costs Sl Tn return for this fee I will shortly be in a position to deliver a book which Is looked upon tho best text book on American finance yet to come from inc lArnss II Is wnrih far mora fhan