The Washington times., 1912-11-03

erS Association OF inc D'''''~'
Columbia, tomorrow or TUESDAY VIII
appoint three prominent washington
bankers II committe to assist w. Jet
Lauck, local representative Of the Ma
tionai Citizens' League, for the Pro- !
motion of "A Sound Banking system. In !
forming II District OF Columbia brahch ,
Of the organization.
The league Is u national organization
| now spreading its branches into the
various states and cities formed for /!
the purpose Of disseminating Informal !
| ton upon the necessity for currency
reform legislation. 1t is backed by !
large number of prominent business
/ men throughout the country.
J Probably not since the days OF free
silver agitation, when every man on
, In, street was discussing economic
| questions relating to monetary legisla-
! lion. and when a flood Of truth and
, fullacy filled the public mind upon these
I problems. has there been such ten
: d.ncy to popularize the subject OF
monetary reform. In this movement
| however, the aim and purpose OF III"
league will be TO educate the public 10
| a realization of conditions as theg eN-
lot and when this is done the league
| heIioyes the country will be unit In
demanding legislation that viii result
In correcting present abuses and eilect-
ing a moro elastic currency.
Tbe league is not advocating any spc-
ciac measure. II Is engaged In demon
stratinp the need for a mcasure ol ie-
lief
As a part of the educational campaign
the league has just copyrighted ana ls-
sued a i2O-page book. entitled, BANK
ing Reform" edited by }. Laurence
Laughlin, professor OF pOlltlcal ccoh-
omy In the University OF Chicago IN
the prefacc TO the work Prof. Laughlin.
who is chairman Of the executive COM
mittcc Of the league, states succinctiy
and clearly the reasons for ire orBah-
!zatiOn Of the league.
This volume Is intended to furnish a
rIain. uhtechnical exposition of the de-
fccts OF our present banking and cur
roncy system, together with discus
sion of the remedies" he says. Not
since the civil war has the country been
confronted with a monetary and bank
ing question of greater Importance to
business prosperity. The adj luhcy Of
the banking system affects the every
day existence OF the labOrer. farmer,
and merchant. The unnecessary expense
OF obtaining credit under bad banking
system i3 borne by the borrower; the
impossibility Of getting loans IN n tim"
Of panic shuts up factory and shop and
falls most severely upon the wage
Garner, who loses his employment. Tn
employment Is largely increased by
financial panics
The reason for the existence OF the
National CitiZens' League, which Is
made up Of bCsincs men, Is found in
the fact that the reform affects the
borroSing business man more than the
lending bank; the bank can always pro.
tect itself by sacrificing the borrow er.
There is practically no class in the
community not directly concerned in the
outcortc Of this campaign Of education.
1T has long been seen that our cur
rency Is ncedlessly inclastic; that our
, | credit system Is even more dangerously Y
| inclastic: that our large gold supply Is
! inoffcctiSely used; that the scattering
Of reserves forbids cooperative action
. by the banks In times OF stress; that
2 our rigid reserve system even breeds
{ panics: that Stat" banks and trust
companies are doing commercial bank.
I ing. but without cooperation with M
: tional banks: that our Independent sub
! treasury often attacks the reserves o
Z banks at times of danger and works
! without business-l!ke economy and eff
Z cheney: that idle funds of banks drif
TO New York. and on cali loans fceC
! stock speculation; and that our, trade il
. greatly halnpcred hN lack of American
: banking facilities in foreign countries
For these reasons the peoplc are Callin,
!, loudly for legislation that shall be non
partisan and formed on seasoned eX
j. democratic system OF Independent
= banks. 1t should also be matter o
Z care that elasticity should be obtaine,
's without the dangers of ovcr-cxpansion
The reform should not take the shap
of dominant central bank. nor shoul
II he the creature of politiCs. For thi
4. reason the Government of the Unite
: States should not enter the discount an
Z deposit business of banking; but, on tn
3 other hand. 1t should supervise an
, regulate a cooperative mefus of as
Is sistance. like an enlarged clearing hous
association. in the common interest
:, and require the banks to nay all til
n cost of providing capital, supplying gol
: reserves. and issuing notes under &
= profits OF note Issues and OF discount
q would go to the people Of the Unite
States. Moreover. in any Legislation
care should be taken that control of ou
credit system should not pass into tn
y hands of any sinister political or finan
/. Cial interests.
/. For these good and sufficient rea
!. sons, the National Citizens League, or
\ ganized in most of the States of til
y Union. is now carrying on a campag
Of education so that the worth OF ever
\. | measure proposed 10 congress may
}, rightly judged. For this reason the pla
l. OF the National Monetary Commission
q the elaborate and most discussed pla
= before the pubic-has been given eN
= tended study. The league. however,
- | not committed to any specific measure
a II discussion shows that any other pla
Is superior to that now before Cor
grcss, II will support that plan. 1t wi
h favor any measure which incorporate
= its fundamental principles without rt
Ss gard to its origin. 1t realizes, however
u that the remedy for the defects OF ou
~ present credit system lies in some fori
J.. of cooperative institution, evolve
a | from our clearing house experience
nv whatever name II NAV be called
"A | which will remove the defects of toda!
The evil of separate sections, workin
u | mt odds can no longer be tolerated
I, The co-operation desired should !
Y country-widc. providing for the in
q portation Of gold. In the interest of a
~ banks, big and little, giving assistan'
az 70 all In times OF stress, and supplyu
- uniformity In the. rate of discoun
g such advantages could not be game
- NV dividing the country into indepen'
sas ent detached sections, leaving tn" sit,
- alton much as II is today. But tn
s' | co-operative agency should furnish II
- indisnensable economy OF united L
= serves and common places for the r.
SB 1laoo,nt 80 cnnmprCill DuD1r imDOSS