Bisbee daily review., 1912-01-11
Present Financial System
 is Condemned by Hubbard

Ebert Hubbard, in a recent arti- cle in the Fra thus discusses the ills of the monetary system in the United States:
 President Schurns7s, -f Cornell has recently said that the United States has the worst banking sys- tem in the whole world To use his exact language: II Is imposSi- ble 10 estimate and difficult 10 ex. ageerate the magnitude of the losses which this country has suffered and is suffering from the defects in its banking and currency system No other civilized country would SO long endure such a waste of its resources. no other country is rich enough 10 have withstOod it."
 Our financial system is hundred years behind American business.
 Panics should be a disgrace to a nation, just as sickness should be disgrace to an individual For a man to lose his composure and then bis digestion. and finally find his nerves on the outside of his clothes, is an absurd and foolish proposition. and can only come to one who has per, sistently violated the laws of na tUre.
 The proposal of the Monetary Commission now is to have a na- ticnal reserve association. the stock of which is owned by all the banks of the country.
 The ational Reserve association will be the depository Of the United States government, and will loan 
 mercIal paper, without question. and in any amounts that are within reason.
 Back of the United states is tremendous and almost incomput- able wealth. We have the basis for credit, and what is required now is that the banks shall CO., operate with our Uncle Samuel, and serve the business world
 The National Reserve association will have a capital Of, say. one hundred fifty million, and will carry a legal reserve Of fifty per cent. which is very much more than the average bank carries. It Will have a minimum loaning capacity, say, of three hundred million dollars, at any time
 This National Reserve association will be allowed to make five per cent on it's capital, but beyond that it's profits shall go back into the founds of the United States. except a small surplus. which it will he allowed to accumulate.
 Ninety-five per cent of the busi- ness of the United States is done on credit. When We realize that, If credit suddenly gets sick, busi- ness is paralyzed, then We begin to realize how very necessary it is . that the lifeblood Of the nation shall not cease 10 circulate
 In the vaults at Washington are now twenty-five tons Of gold. To be exact, we have twelve hundred million dollars lying idle there in Washington
 And the idea is growing that idle !. money IS almost as bad 2s an idle man
 Russia has always been given the credit for having the greatest hoard . of money Of any country in the . world, but Russia now takes second ] place.
 The taunt against Russia has al- . ways been that the money was there in her vaults, even when fam inc stalked abroad among her peo- pie, and children, crying for bread, roamed her roadWays
 America has no way of giving con | is the good of the people The mon ] ey in the vaults al Washington is | for the purpose of redeeming out standing paper certificates and | notes.
 The curious thing is that no in. | dividual ever applies to Washington . for the redemption of the yellow 1 back notes The notes circulate in- definitely.
 If we need a little gold for a special purpose, our banker makes the exchange. and there the money lies in Washington undisturbed.
 A banker who would carry the same amount of cash that he owes In liabilities would be deemed a lunatic. Experience shows that a banker can safely loan seventy-five