Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1912-03-15


and entities the member the pamphlets issued by
the League dealing with his question.
In explanation of the aims and purposes of the
League reprint the following editorial which appeared
in the The Farmer of Feb. 81
'Ever since the so-caed Bankers Panic of 1907.
when lack of public confidence in business conditions
caused greet deal of hardship and financial loss the
business of the country have been seriously consider
ing the matter of bringing about modern and salts
factory system of banking in the United States. This
country at doing business under system estab
ished about the time of the Civil War; and it is remark
able that thus far have had serious financial
disturbances account of its operation. Unlike most
foreign countries, where all banks of the country
grouped under and in way supervised by central gov
ermenta bank. the American banking system works
along individual lines governed only by the laws regard
ing the protection of deposits. AS business in this
try largely done with credit rather than with cash.
in times of financial srngency when every bank has to
fight for itself there is great tendency for the creation
of pancs just had in 19O7-a panic which was not
justified by crop industrial conditions but was caused
purely by bankers distrus of another Panic re-
suited when the people found that they could not get their
money when they wanted it, though they rarely want the
money when they get it.
"The agitation among business for banking
form has resulted in the creation of the National Citizens
League. with branch leagues in most of the western
states This league represented by strong crganza
ton in this state with headquarters at Red Wing.
Some of the most influential business in the country
are behind the league and urging at this time the
adoption of the recommendations of the National Monetary
Commission which in the form of bill before
Congress This bill proposes the establishment of Cen
trail Reserve Association which will correspond in many
to the central banks other countries
but shall differ from the central bank in that it really
organization of banks strength of which
would be at the service of any or group of banks
in times of financial difficulty putting into effect cooper
alive principle which would place the small banks of the
country the footing with the powerful banks in
the larger The association would operate through
fifteen districts, locally controlled thus avoiding the
domination of any section OF the country.
1.-THE benifts of the National Citizens League would
be briefly follows: eft would give the needed supply
of money in time of STRESS instead of cutting down the
supply, happens under the primitive conditions
When there little demand for money the supply would
contract automatically, flow to some other quarter
where it is most needed such the growing
states during the grain crop The of dis
count would be made unfornm throughout the United
States The expense of shipping from
to another would be done away with almost entirely
The New York broker who is the niddleman of the fin
anca world. and feeds the merchants and banker alike
while contributing little nothing them would lose
his profit the crop movement. The southern banker
would longer find himself confronted every autumn
with the serious problem of how and where to get
for the movement.
'We disposed to place great deal of confidence
in the recommendations of the National Citizens League
and feel quite certain that banking reform of
is absolutely necessary in order avod pancs of the
future for which there is Farmers should be
quite interested in the matter for the reason that the
moving of crops which always means trouble in financial
circles would be greatly facilitated by the operation
a modern banking system. We would suggest that if
any of readers to posthemseyes upon this i'm
portant subject they easily all necessary nfor
nation by getting touch with joining in membership
with the Minnesota Citizens League which can be reached
at Red Wing MIMI
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