The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1912-09-10
Several Thousand Leaders in
Financial Activities are
Assembled at Detroit.
ROBERT v. BoYNE DISGUISED
BANKING AND CURRENCY reform
Declares Currency System is UniveFs.
ally Recognized as Thorouehly On.
sound and Advocates Plan Propoeef]
BY National Monetary Comndssaon.

Detroit, Mich. Sept. 1O.-Wel.i N
coined by the governor Of Mich .
igan. the mayor of Detroit and
the local financial leaders, the
American Bankers association
held Its opening session OF its
annual convention here today.
Several thousand bankers are in
attendance. An address by Rob.
ert w. Bonynge Of Denver, mem.
Der of the national monetary
commissions, closed the morning
session.
Mr. Bonynge discussed "Bank-
ing and Currency Reform" and
said in part:
"Our banking and currency
system is universally recognized
as thoroughly unsound. All the
political parties have declared in
their platforms of this year in
favor Of its reformation, but no
specific remedial legislation has
been proposed by any. 1t is per.
maps better that they should not
have done so. The problem is
essen1aily an economic and bust.
ness question.
The defects in the existing
system that must be remedied
no matter which party Is charg-
ed with the responsibility Of
framing the legislation are: onr
unscdenttfic treatment of bank re.
serves, the rigidity of our entire
credit system and the lack of
cooperation between our indie.
pendent banks.
"our present reserve system re.
Itr1cts the loaning power of banks a,
lines when reserves should be freel,
1sed and credit literally extended te
solvent business men and thereby in.
:.ensihes. II 1t does not actually pro.
luce panfcs. Our scattered reserve.
ire wholly ineffective for use in en-.
srgencies. Our bank notes do no,
1uctuate In response to bushes.
needs. Even the commercial papey
Md by the~banks in times Of etres.
8 concerned only in strengthening it.
reserves. The sole method available
Tor that purpose Is the calling o,
oans. The portion Of the reserve.
aeld in the vaults Of our thousand.
u Independent banks is for all prac
ical purposes a dead asset. Indeed
'ig1dity stamps itself upon our entire
credit organization.
I'VE have only local banks. The,
'urnish banking facilities to theil
'wn communities. They are indis.
oensible. But it must be obvious tina,
.hese strictly local institutions car
lot look after or provide for the gen.
eral credit conditions of the countr,
1t large.
"As it was found necessary to or.
yanize the federal government tc
guard our national interests and tc
egislate on those subjects affectine
Is as nation, SO We must have some
rational federation Of banks for ma.
fonal financial purposes. The inde.
'endence of the units must be abso.
utely preserved. The powers given
o the federation Of the banks mus,
'e strictly limited to those that are
rational In character? The form OF
must be such as to in.
'ure its operation in the interests OF
md as a support to all legitimate bus.
ness and must be wholly free from
'ectfonal, political or selfish financial
control.
Elasticity Needed.
when thus organized it must be
to act as custodian for
he reserves Of the banks. to redis-
count their short time commercial pa
'er. to provide safe and sound bank
tote currency that will automatically
ldjust itself to the constant changes
n business requirements. to act as
ne governments fiscal agent, and to
epresent US in all national and all
financial affairs.
The experience Of the world
proves that a currency issued by a