The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-11-06
SANDS SPEAKS ON
| BANKING REFORM
Addresses Appeal for Elastic
Currency System to Richmond
Credit Mems Association.

One hundred and twenty-five mem
bers of the Richmond Credit Mems AS
sociaton and guests made business
work in with pleasure last night when
they gathered around the banquet
table in the Business Mems Club to
| topics and to hear the election bulle-
tins over a private wire. Later In the
evening other members of the Bust
ness Mems Club were invited to take
advantage Of the wire engaged by the
association, and the club rooms were
crowded until late in the night.
OF the after dinner speeches. the
address Of the principal speaker Of the
evening Oliver J. Sands. president OF
the American National Bank. stood out
above the rest Taking for his sub
ject Banking and Currency Reform
Mr.. Sands analysed the present de-
fective systems with consummate
clsarness and offered remedial meas
ures
"Panics." said Mr.. sands. have cost
this people more than the wars. We
are the greatest commercial nation in
the world. and Yet the only civilized
nation with an uncivilized banking
system" He proceeded to show how
panics, preventable by sound leg!sla-
ton. are directly due to an inadequate
banking and currency system.
Law-Nakers Afraid.
The reason the system has never
been reformed, said he, is because
reformation has been left to law max
ers and bankers The political parties
fear TO offend the large financial in
terests by tampering with the present
system, while rural banks are no;
keenIy touched by the situation. and
! the wealthiest banks fear a new sys-
! tenn might take away their control Of
! credits Consequently, ne said. reform:
will never come until commercial mel
! take up ;he question and drive the
| lawmakers 20 give the resired results
The trouble with the present system
I he said. is an inelastic currency ass<
an ineffective reserve. We have the
! larscs: bank reserves OF any country
! in the world but they are 50 scattered
{ tina; they are Ineffective when needed
. Tho crying need is a central reserv.
| reservoir OF cash.
! For the reformation Of the presen
- stem. Mr Sands quoted the card!na
points a. proposed by The Citizens
LEAGUE f0- the Promotion Of a Sount
banking system:
4 J. y united reserve agency TO mol
tn" reserves O. all the banks to tn
end that fu"F" may be NJ CUrta!lrnen
az -" power % loan and therefore n
'iEt"rfer"r"c with the elasticity of de
p"sit currency.
>. \ EarI"3.sI discount rate. by wh!c
> tn" supply 90 zrid NAV Sc controlled
=. \ G!srrEn; system. so that an
! bank may ~ SUI" o: a place where IL
10 h.Sh-srad- commercial paper may ,
= r.discouuted
8 \ baakaots currency which wi
|, respond To- the needs .. business. TIL
"nly security Tor Sgsh currency
: bank assets IN the form Of corn:mercis
paper.
II Enag< n, arria-s" greeted rr.sid.r
4 Foau : Harw0o when be ar psc Wit
g I'll. sat. Turnt that two blue sigma
8 rockets. hired ~ The T!mcx-p s aa- q
had JI~, illuminated the heavens vi;
> the r0ws 81 wilson's election. Ball.
tins from all over the country wei
read az frequent intervals during N
d.Bac-
". T. thinner. % rctsrshurr mad.
graceful reply on behalf q the Peter,
burg delegation Q" the welcome 9,
tended by Colonel Harwood Leo
waiIerstr'n Saok. IN The Good 81 n
order and ;he R,v. Russell Bows
rector % So. paaIs Episcopal Cnurc,
delivered fve.mInEte talk ~ &c,
~-ai upI,f,~