The Dolores star., 1912-02-16
Friday, February I6. 1912.
Currency and Banking Reform.

Probably no greater national
measure was ever presented to con.
press after such prolonged, careful
and earnest study as that recently
reported by the monetary commits
sion.
its aim Is the reform OF the
national money system-a reform
the need Of which is doubted only
BY those who fear less any change
in our financial laws may increase
the money power" and those who
do not realize that of all the money
systems of the world. ours is the
most antiquated, and complexed.
and the least adapted to the needs
of a great com mcrcial and Industrial
people. Although in some respects
the richest nation on earth, we are
the only nation that is subject to
serious money panics. This state
of affairs the bill seeks to remedy
through the introduction in a
modified form OF the emergency
precautions taken by other great
peoples.
Whether the measure would ac-
conplish this end on the one hand,
and on the other would be secure
against the abuses that many peo-
pie fear, are questions that will be
searchingly debated. In order
that readers may form their own
opinion on these points. The Com
paniou presents the broad outlines
Of the scheme Of the monetary CON-
mission. -...
Il proposes . National Reserve
Association, Of which any national
bank. state bank and trust company
may become. . member. Ii pro-
vides for board Of forty-six direct.
ors, made up as follows: two
directors from each Of fifteen dis
tricts into which the country shall
be divided; nine directors, not more
than one Of whom may be taken
from a single district, and seven
directors, Of whom three must be
members Of the presidents cabinet
and one the controller Of the
currency.
In each Of the fifteen districts It
plans to have a branch Of the as
ISOLATION, with its government
guarded with similar care; and also
to have local associations Of not less
than ten banks each. II stipulates
that both the branches and the
local associations shall be under
the strict control Of the national
association.
II requires that the capital Of the
National Reserve Association shall
be made up Of exactly twenty per
cent Of the capital Of the subscrib
ing banks. The associatioa shall
begin business whenever two hun
bred million dollars have been sub.
scribed. and one.half Of 1t paid in
cash. 1t shall do business for
banks only. from which 1t will re.
ceive deposits and for which II will
rediscount commercial paper.
Provision is made that the as
ISOLATION shall ultimately become
the only institution with the right
TO issue circulating notes. 1t ar.
ranges, however, that the associa.
ton shall pay a heavy graduated
tax on all notes in excess Of certain
specified amounts. unless secured
by an equal sum in gold in actual
possession.
Finally, Il provides that the As.
ISOLATION shall be the financial
agent Of the government; all reve-
nucs shall be deposited. with il,
and all government disbursements
made by Il.
Two fundamental objections
against the creation Of any such
great central financial body will
undoubtedly be urged: the FIRST,
that II may become the tool and
agent Of Wall Street; and second,
that Il may easily become q grea,
money power itself.
To guard against the FIRST Is the
object Of the peculiar distribution
Of directors already described. Un-
der the arrangements, the Southern
States and the group Of states from
Nebraska west to the Pacific ocean
viii each have twice ~ many
directors % the four states Of New
York, New Jersey, Pennsylvanis
ind Delaware.
70 guard against the second. the
)ivjdeud power Of the association
J stgicsiy limited. Until u has
cauirsd ! csstain specified surplus, !