Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1912-05-11

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lnpses AT a time when the banks oi
the country should come lo the aid oi
IT'S legitimate business, they are com
do business temporarily to ahdioate
their functions and wait unul the f-
nancial storm blows over
The panic OF 1907 brought these
facts in a most forcihle manner 90 the
attention OF the American public and
made II evident to the business men,
as well as the bankers that q revision
of our banking and currency laws
could not longer ho DELAYED.
Defects of Present Reserve system.
The defects In our present system
have frequently been pointed out. I
viii therefore content myself with sim
ply mentioning the principal defects
ana In giving the hrcfcst possible out
line Of the remedy proposed for them
by the National Monetary Commission.
These defects are; First. our anti
quated system of reserves is scattered
among the many thousand units max
ing mp our series OF banks, thereby
rendering that portion OF the reserves
Ineffective for use I'm times Of cmer-
gcncy Under this system another por-
tion OF the reserves, and large
amount II the surplus moneys Of the
country naturally grayitate to the
banks In New York city, where alone
they can he profitably employed at
certain times Of the year by being
loaned out on cali to stock brokers
upon the security Of New York stock
exchange collateral The consequence
Is that. all the business of the country.
It's manufacturing. agriculture and
merchandising are dependent for the
currency with which to carry on their
operations an speculative movements
/ in Wall street.
Money Trust.
1--WE are about 10 have a congress
sional investigation Of what is termed
/ the Money Trust" feel confident
that If the investigation is thoroughly
conducted II will convince the people
that the defects Of our present bank
ing system, particularly those relating
10 the reserves OF our banks, are
altogether responsible for the concen-
tration Of the surplus moneys of the
country in the New York City banks,
and their use by those banks for fur
thering speculative movements I'm Wall
street. II is the fault of the system
under which our banks are operated,
and there can be no remedy until the
system itself is thoroughly remodeled.
The banks In New York city are oper-
ated, as all the other banks through
out the country are. for the profit Of
their stockholders No legal response
hility is imposed upon them to act as
the custodian for the reserves Of other
Foreign Banking Systems Unsuitcd to
Our Needs.
when the commission examined the
banking systems Of foreign countries
to ascertain what agency they en-
ployed which has enabled them to be
free for more than fifty years from
money panics, It was found that in
each Of those countries there was some
general institution which, under regu-
latlon Of law acted as the custodian
Of the reserves Of the banks and was
usually given the exclusive power Of
hank-note issue. These institutions of
foreign countries, however, do gem
eral banking business. We very soon
determined that II would not be wise
or desirable to attempt to establish in
this country a central bank, such as
the bank Of England, the Imperial
Bank of Germany, the Bank of France
or the First or Second Banks OF the
United states. We do not need such
"A bank TO correct the defects of our
existing system. A central bank would
be unsulted to our political or econom-
ic conditions.
General Plan.
In a general way, the plan provides
for a combination Of the independent
units of our banking system into what
is known as local associations Those
local associations in turn to be formed
into district associations and those
district associations combined TO make
up the National Reserve Association OF
the United states
THE district associations would he
10 IN number. The entire country
would bo divided into fifteen districts
around - Of It's commercial centers,
and In each district there would be a
branch Of the National Reserve Asso-
citation. There would he one district
and one branch in the NoY England
states two I'm the Eastern; four in the