The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-03-07
BANKING EXPERT
SOUNDS WARNING
PREDICTS RECURRING PANICs IN
LESS CONGRESS REFORMS
CURRENCY SYSTEM.
-EAN0Rs ALDRICH-PLAA
n. PARKER WILLIS. OF WASHING
TON, SPEAKS BEFORE ntsi-
NESS MEN AND LEGI>-
MEMBERS
FANORs ALDRIGH-PLAA

II nless the American people force
on an Indifferent Congress the crying
need Of monetary reform We VIII
continue to have frequent ana dls-
astrous panics We, of ali the pro-
gressive people on the globe. are "pe-
rating under a lax banking system,
This was the declaration last night
Of II. Parker Willis, dean OF the
School of Finance and Commerce OF
George Washington University. before
prominent Richmond business men
and members of the General Assem-
Div at dinner in the rooms of the
Richmond Business Mems Club. His
subject was the Need of Banking
Reform"
Mr. Willis represents the National
rItizens' League He WAS followed
by William +. Carson, president of
the Virginia Association of the league.
Mr.. Willis described the Aldrieh
plan now before Congress and While
not advocating this particular remedy
suggested something similar 70 bring
about a national reserve. The Ca
madam system was praised.
Present system Dangerous.
Our present system of centraliza-
ton" Mr. Willis declared, is dam
gerous in the extreme. 1t makes
panics easy. There is the greatest
danger in pyramiding the country
currency. We have centra lization now,
but il is irresponsible. Everything
goes to three cities-New York, Chit
cago and ST Louis. Under the pres
ent plan bankers cannot secure funds
o. make the loans they wish to on
good collateral.
Our system of note currency is
not the best and has not kept us in
funds Many have believed there was
competition in banking. but this is
not true. An alliance exists and we
do not have the free competition that
is supposed to exist
Admitted We are wrong. there are
three things TO do. We must go back
10 the plan of fifty years ago when
banks worked independently. We
must follow the lead of foreign coun-
tries and have real Capitalization. or
we must adopt plans similar to those
outlined by the Monetary Commission.
Cooperation is the remedy.
Many ask why this cooperation
has not already been tried out. 1t
has. 1t is tried on a smaller scale In
all cities where there are clearing
houses. What we need is the sa me
aid 10 bankers as the customer now
receives from banks
Conditions Could Not Be Worse.
''Df course there are objectio nY
Some say it would result in inflated
values. but this is not the case. Even
Saif5it We're. true 49, ssaald s-haxec. -aa
worse conditions than We have had
in panics In years past. The objec-
ton that there would be centraliza-
ton is answered by the fact that We
have ii now in its most irresponsible
form. The new plan would not in
"A remedy must Ire found. They
declare that the Aldrich plan Is bad
because II Is fathered by Aldrtch
Within the past few years Aldrich
has reversed his position regarding
the currency system and now holds
the same opoininshrdlu
the same opinions as most of the
leading financial men of the coun-
try
Mr.. Carson's talk was short. He
outlined the object of the National
Citizens League. which is laid down
as this:
ITO create strong national senti
ment in favor of plan of monetary
reform, which will be American in
its spirit and application fair to all
sections and classes. and free from
dominant control by any special In
seFeSts.
: "'ro make liquid the sound COM
mercial paper OF all banks.
ITO provide an elastic currency and
credit to meet all demands at all times
without possibility OF overexpansion.
ITO create q discount market at
home and abroad and organize better
banking facilities with other coun-
tries
At meeting of the Business Mems
Club yesterday afternoon resolutions
We're adopted approving the work of
the National Citizens League. The
club heard Mr.. Carson, John b. Pur-
cell president of the First National
Bank: Oliver J. Sands, president or
the American National Bank. and G.
Grattan Price. of Harrisonburg. state
secretary of the league.
The league has branches In every
State In the Union.