Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1912-08-29
commercial CONGRESS
TALK At SAL1LAkEC|TY
Congressman sonynss.

Former Congressman Robert w.
Bonynge, of Colorado, in discussing
The -.e.orm of Our Banking and
Currency Laws" before the Trans.
Mississippi Commercial Congress, de.
clared that the American peopie soon
would insist upon removing the stig.
ma of being a financial nuisance
among the world powers and would
demand a comprehensive banking
system.
Mr.. Bonynge urged the plan Of the
National Reserve Association as a
remedy for the present ills OF the
American banking system.
I'VE could not, if we would" he
said, lgnor the fact that we now
have $4,000 independent banks which
are furnishing banNlng facilities to
the communities in which they are
located.
"The Reserve Association would
not in any way compete with existing
banks. 1t would be organized to per-
form duties which the local banks
cannot perform. The plan is not
Revolutionary. 1t is altogether evolu-
tionary.
1T would in fact be an extension
of the Clearing House principle with
which we are all familiar.
"The union of the communities IN
to states, and of states into the Fed
eral Government, seemed to US to
furnish an excellent model upon
which we could build a general az
fliation Of the units of Jul banking
system that would be in strict har-
mony with our political and social
conditions.
I'VE decided that such an afilia'
ton of the banks of the country
properly organized, SO as to make alb
solutdly Impossible its control for
selfish purposes by any section Of the
country, or any group of individuals,
however powerful they might be nm
ancially or politically, and with only
such powers given to it as would en-.
able it to discharge certain national
duties in finance that cannot be per-
formed by local banks, would accom-.
plish for the finances OF the country
what the national government has
for it's political and governmental In
interests.
I'm a general way, the plan pro.
vides for a combination Of the indie
pendent units of our banking system
into what is known az local associa-
tions.' These local associations in
turn to be formed into district ass0.
Citations and those district associa.
tons combined to make up the Ma
.ional Reserve Association of the
United States.
1.-THE district associations would be
IS in number. The entire country
would be divided into Is districts
around Is of it's commercial c%enters,
and in each district there would be q
branch OF the National Reserve As--,,
citation. There would be one district
and one branch in the New England
states; two in the Eastern; four in
the Middle Western; four in the
Southern; and four in, the far west:
ern and Pacific States. The only
stockholders in the association would
be the banks of the country.
The stock would be absolutely
non.transferable, SO that It could not
be acquired by any ambitious fnan.
cial interests.
"As the entire plan Is built upon
maintaining the Independence and
integrity of the individual banks OF
the country, a most drastic provision
has been inserted in the measure to
accomplish that purpose.
1T is to the effect that II the CAPT.
tai stock in each oftwO or more bank
being members of he same local as.
ISOLATION is owned, directly or indi-
rectly, to the extent OF 40 ssper cent
thereof by the same person r per
sons under any form Of 0rganlIation,
either as a co.partnership, Corpora
ton or ctherwist, then such banks
shall not be entitled separately TO
vote as units but all OF them together
shall constitute only one unite and
o accordingly. ~.
1T is proposed that there s should be
IS directors of the National Reserve
Association. Out Of the AS, seven
should be what might berterlled gov
eminent of exlpfiicio directors.
They would consist OF thes6ecFe.
tary of Treasury, the Secretary Of
the Department of Commerce and
Labor, the Secretary of Agriculture,
and the Comptroller Of the Currency
to whom would be added the cover
nor and two deputy governors 'of the
Reserve Association. The governor
would be appointed BY the Presi-
dent Of the United States from q list
Of names submitted to him by he