The Sentinel=record., 1912-03-22
RECEPTION
 ID CARNEGIE
(contlnued From Page oue.l

Ut iHieINaiS pressure comes upon the weak spot; deposilors take alarm. will draw their funds, and one weak bank being discovered suspicion is aroused, and panic spreads and such ruin as that which followed 1907, and always follows in greater or less de. greek inevitably the panic spreads and becomes general, because each bank Is compelled to guard its own safety; it withdraws it's deposits from others. and holds onto It's own --the public takes alarm--the result Is scramble, and disaster ensues, working ruin to thousands, and the whole banking system is subject to suspicion forever afterwards.
 Look at the other picture. A great house like the Earrings, next Tn rank to the Rothschllds, unexpectedly fail ed some years ago. arousing alarm throughout the world. What hap pened? The directors of the Bank of England met and recognized the danger. Immediately the government appealed to and requested to author i2e lhe issue of notes sufficient to meet the emergency The mere fact that this would be done quenches fear
 Not an extra note had to be is- sued. Only once has the Bank of England ever had to issue one note beyond it's ordinary powers, and that only to the extent of a few thousand pounds. Why this magic, simply he cause the central bank will not per init any bank having negotiable sure ties, including satisfactory. genuine bills receivable. mark you. to be en- dangered Bank business goes on as before, and the panic passes quietly awav-indeed it never generates into panic.
 So with other civilized countries. All have this safety device warrant ed to prevent panics. We alone have none
 We may describe the situation also
 in thase words When suspicion arises with us each bank feels it must depend upon itself---it has nothing else to depend upon. In other lands, each bank feels it can and must CO | operate with other banks becans there is a common central power in reserve which can and will step in and protect all and thus prevent pan. ic. That is the whole ease in nu.
 sIhell-in union there is strength
 they have the life preserver, and we haven't Now this is exactly what | the reserve commission has provided | Not a bank in the country but is in vited to join and become share | holder The commission provides that
 every bank shall be charged the same | rate of interest. The rediscounts ot 1 your bank here in Arkansas is tC enjoy uniform rates with the foremos of New York. Bank discount rate. are to be published and be uniform | throughout the United States. NJ small gain to the smaller banks il | the newer states.
 l Here we strike what has long beer 1 the chief obstacle in the path of con | soldation of interests, the supposed dominant influence the money power of New York and it's environments The commission has wisely recogniz- ed this fear. Please note carefully how this supposed influence has been restricted by it. but first let me say that in times of panic the bank off cials of New York who are. by New York citizens, the recognized lead CTS in finance, are men above sus- picion. know many of them per sonally, and body of abler and more irreproachable men is not to be found anywhere. The man who reaches foremost position in financial circles there and is called by his fellows to serve upon the all important panic committee, Is a man above all things uf uIldoubted character. NeveTtiis- less it Is advisable and quite right That in the proposed revenue asso- citation, New York. and her neigh bors should not occupy the command ing position.
 l cannot trouble you this afternoon with all the details of the proposed National Reserve association, these are numerous, but 1 have given your distinguished fellow townsman, Pres ident Rix, the banker. q copy Of the proposed bill and pamphlets, giving exact details.
 One feature proves the desire of the commission to protect the priyi- leges of the small banks, and keep New York from predominating.
 In the reserve association, the New York district, with 20 per cent of the banking resources of the country. will have only s per cent representation upon the board of na- tional reserve association; New Eng land. with l2 per cent of the re- sources, swould have per cent rep resentation. The eastern states, with 41 per cent of the resources, would have only l5 per cent Of representa- ton. The Middle West, with A per cent of resources, would have 3l per cent representation, The Southern states. with II per cent of resources, would haye 23 per cent of represent- ation-more than double the quota and the Western and Pacific states. with t2 per cent resources, would have g per cent representation.
 The New England, Eastern and Middle West states, with r per cent resources. could elect only 2l out oi the 4G directors of the reserve asso- ciation, while the Western and Pa. clfic states. with g per cent of re sources, might elect 46 per cent ot the representatives.
 This total abolition of the bugbeaf < 4 roatfnuoliosfa ic nlQQ seen in the