Pine Bluff daily graphic., 1912-09-08

| re1enSe.
 One of the results of the national
 banking act has been to create a banking system made up of a great number of isolated units, each work ing within limited circle and each of necessity governed by it's own inn mediate interests without reference to what would be for the greatest good 1 U all. While managers of individuaf banks may fully recognize the neces- sity of greater cooperation, they are, under the law, powerless to effect it. If the present national banking law is amended so as to permit the for nation of an association of all banks of the country to meet these needs, long step will be accomplished. Then, according to Mr. Murray, if more scientific basis for bank note circula- tion is provided so that the volume of circulation will be expensive to the necessities of business, the two main requirements of a satisfactory solution will have been met.
 'In addition to that adds the comp- troller, Eff we can aid in creating a discount market in this country sim liar to the discount markets of Eu- rope, so that the most liquid portion of our bank funds will not of neces- sity be forced to such large degree as to present into the making of call loans upon stock exchange collateral, but will, instead, be available for the needs of commercial business, we shall have so broadened our banking meth- ods as to bring incalculable benefit to the commercial life of the coun- try"
 One plan that has been proposed Is to charter the Reserve Association of America, which will be the principal fiscal agent of the government of the United States. The authorized cap- ital of the association is fixed at $300,- 000,O00 and it's length of charter fifty years. The head of the office is to be located in Washington with fifteen districts throughout the country, each with it's branch of the Reserve As sociation.
 Under this plan which is some thing similar to the English monetary system, only national banks are per- mitted to subscribe for stock of the Reserve Association. A national bank having minimum capital stock of the Reserve Association equal to 20 per cent of the stock of the subscribing national bank. Forty per 'ent of the subscriptions to the capital stock of the Reserve Associations will be call ed in cash, the balance of the sub scriptions will remain liability of the stockholders, subject to call. After the payment of expenses and taxes, the earnings of the Reserve Association shall be distributed among the stockholders to an amount equal to four per cent. Further earnings are divided one half to go to the sur plus of the reserve association until that surplus shall amount to twenty per cent of the paid in capital, one- fourth to go to the government of the United States, and one-fourth to go to the stockholders, dividends shall reach five per cent they shall receive no additional distribution. After the stockholders reveive five per cent the earnings shall be divided, one-half to be added to the surplus of the reserve association and one-half to go to the government After the stockholders receive five per cent per annum and the surplus of the reserve association amounts to 20 per cent of the paid-in capital, all excess earnings shall go to the government. The minimum dividends to the stockholders shall be cumulative.
 In effect, this is the plan also suu mitteG by the old Aldrich Monetary Commission Of the National Monetary Commission cf which former Senator Nelson w. A.6rich was chair ndi,, tut which has now been abolished by Congress.
 The plan although advocated ny fully fifty per cent of the large bank CTS in the country, received severe criticism as being favorable to the old central national banking idea of Jack son day.
 However, it is now explained shat it is an impossibility for farmers and industries of various kinds to obtain money at times, owing to the great demand for currency in every section of the country. It is urged that Con- eress should taxe this matter Lp dur .ng the coming session and l.rovide for one of the greatest and most ser