Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-02-11
ITS OBJECT IS EXPLAINED
Senator Burton and Representative
Weeks Address Bank Clerks.
FAITH IN RESERVE FEATURE
Keeping Funds Available in Time of
Financial Stringency Consid-
cred Important.

cure-all for evils which have sprung up
in the banking and currency system of the
nation, Senator Burton of Ohio and Rep
resentative Weeks Of Massachusetts,, both
members of the commission, in addresses
delivered last night at banquet given
by the Washington Chapter Of the Amer
lean Institute of Banking. at the Raleigh
Hotel, declared that when Congress
adopts the plan the country may expect
an end to panics.
Both Senator Burton and Representa-
tive " eeks expressed the opinion that
the plan Is the very best which can be
adopted with the end in view Of giving
stability TO the banking and currency
systems and assuring prosperity. The
plan. they declared, will tend to equalize
rates of interest and bring financial insti-
tutions into closer cooperation, whlch
should benefit the country at large.
Representative Weeks declared that
there is no prospect of the recommenda-
tons of the commission being enacted
into law by Congress at this session.
but he predicted that it will be one OF
the principal issues to be taken up by
Congress another year.
More than two hundred members of
the Washington Chapter of the Amer
lean Institute of Banking and invited
In addition to the members of the none
tary commission who spoke, addresses
We've delivered by Representative JachsoL
of Kansas, on Keep Out of the Rut;
Rep est n alive Littleton of New York.
on "A Few Remarks" George w. White.
president of the District Bankers Assoc
citation, on Some Observations" John f..
Gardin, vice president of the National
City Bank Of New York. on "A Talk
to the Boys and Raymond B. Cox.
of no Institute
Banking, on 'The Institute
Songs and Dialect Reading.
Joshua Evans, jr., president Of the
Washington chapter, introduced DR.. c.
w. A. Veditz, who presided as toast
master The program was interpreted
with songs and dialect reading by Ar
thur Butler Pierce, Philip Lee Scantling
and Edwin Caliow The accompanist was
Byron Blodgett, while e. G. Lorenz d.
rected the orchestra
Prior to introducing the POSTMASTER
Mr.. Evans reviewed the educational work
that has been undertaken by the wash
iaston chapter of the institute. He said
that the membership of the chapter con-
stantly has increased and that a growing
interest Is being manifested in its nairs.
Declaring that America has Jagged be-
hind other nations in banking and
has been due largely to the fact that
the problem Of the currency never has
been considered as an independent pro-
position. He characterized the pr1n-
cipa1 defect of the credit system as
lack Of unity and harmony in tho
financial method Of providing for pantcS
and unusual demands for money.
= In discussing the plan OF the none
tary commission, Senator Burton said
that 1t was not intended to establish
= v,<,I, toy, III v,cr fayY
with the reserve association. Although
such q system has been established in
Germany and France, he asserted, the
members Of the commission decided
that 1T would not be In accord with
American customs.
For the good of bankers and the people
at large and with the view Of giving
every opportunity to individual bankers.
he said, it would be best not to establish
branch banks.
Clearing House Used as Model.
Continuing. Senator Burton referred
favorably to the system OF clearing
houses maintained by American banks
The clearing houses. he said, largely fur
nished the model for the plan Of the
commission, for the reason that 1t shows
what can be done by cooperation.
Other ADVANTAGES which TIE proposed
bring about. said Senator But are q
uniform rate of interest and moro
elastic currency. 1t should enable the
country to get a better mold on Ioreign
trade also, he said.
The question of the equalizing Of in
terest rates was gone into more in detail
by Representative Weeks That speaker
expressed the opinion that the plan. as
proposed by the commission, would les
sen the average interest rate to the aver
h,,c ma l-ffhnff 1nSQnninO
profits of the banks.
Altogether, this is not banker
plan" declared Representative Weeks
1T is a business mans plan. Agricul-
turists, working men, merchants and
manufacturers. as well as bankers. will
be benefited by 1t.
Representative Weeks found an il
Illustration in the Washington water
supply in proof OF his assertion that
the proposed reserve association will
prevent panics. The water supply, he
said, Is kept at a certain place, where
IL will be Immediately available in
case Of a fire. The monetary commits
sion. he asserted. merely wants the
reserves kept where they will be most
available in times of financial strin-
gency.
The Massachusetts member found fault
with the system employed by bankers In
the matter of sending surplus moneys 10
reserve cities. principally New York. This
system. he said. has led to speculation.
Speculation has been followed by a de-
mand for money, which, in some in
stances. has led to panics.
Praises Work Of Commission.
Referring to the work of the monetary
commission Representative Weeks de-
clared that there never has been such an
accomplishment along financial lines in
the history Of the nation, even II nothing
comes of it. The reason experts We're not
put on the commission. he declared. was
because IL was necessary to have the
membership made up of members Of Con-
gress who could take an active and prac-
teal part in endeavoring to get favorable
action on any legislation proposed.
Representative Jackson declared that
the monetary commission has taken a
step in the right direction. He referred
TO financial reforms which have taken
place In Kansas. Kansas blue sky" law
he said, has saved the people of that
state thousands of dollars. and the speak.
er declared that he was glad that the Dis
Congress the draft Of a similar. law
which is designed to protect the citizens
Of the National Capital from investing In
the stocks and securities of wild cat
concerns.
Geor w White commended the men,
bers of the local chapter Of the institute
for the thorough manner In which they
have taken up the study of banking
problems and reforms. Bank clerks OF
today, he declared, are more proficient
than those Of a decade ago. and IL they
continue the educational work In which
they are engaged. he asserted. they may
expect to be the bank officials OF tomor-
row.
List Of Those Present.