The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-11-24

G. few wears has exercised the CEN
,-,l-hank function of regulating the
discount; rate The Treasury. BY alter
nate deposits and Withdrawals OF eae
public money IN the banks. as Wen as
bv other devices, has attempted to
regulate the discount rate.
The Treasury Department should be
divorced from the money market anu
from the banking business. and the
wav to effect the reform IS plain We
should have in this country a quasi
public institution not only to hold the
ultimate cash reserves Of the bank ana
to regulate the rate OF discount, but 30
act as the fiscal agent Of the govern
ment Such An institution would hold
the government balances as deposits.
and the government could check
against them Just as any large busi-
ness concern checks against its bal
ances in bank With the govern
.nenr balances deposited in sucn an III
st.tuS:ou, the business OF the country
would never be disturbed by the Treas
tary OF the Treasury would no longer
be forced to u.e0ale in the money mar
kst.
view Banking System Urged.
Taking the government out OF the
banking business IS only one phase OF
the reform of our banking and cur
rency system in which all Americans
should be deeply interested The prin-
cipai requirements Of new banking
and currency measure are that Il snail
provide a pcacu cal immunity from ser!-
! Gus panics-sUch an immunity as -
enjoyed by the other leading financial
, nations: that II shall abolish the hab!-
tualIy recu-rent ordinary stringencies
n the money market. which keep re-
lations between ;he bankers and the
business men OF the country almost
continuously at skies and sevens; that
II shall remove the defects Of our do
nestle exchanges; that II shall enlarge
and develop the facilities OF our for
I eign exchange system, thai s. shall
properly develop the discount market {;
! that Il shall ~ho!esor1e!y assist IN reg
ulasinE the interests rates and making
, them uniform throughout the country
sha, 8. shall put al end 70 the tendency
" hiCh forces our BANK balances into
/ speculative channels, and save them
| for regular trade and commerce To
meet the case 8: 10 necessary to have
! an elastic currency. available reserves
! and every necessary provision ard pow
| er both TO permit and to check the ex-
\ paas.oa o: loans
| The new banking system Will also
have to provide with dist!nc;ness and
completeness ample banking facilities
Cor our foreign commerce. commerce
tha; with the proper governmental ca
couragement VIII De world wide and
/ worId-ya-ied II is .t'e 90 expect that
, We shall ever have a developed for
! .!sn commerce. without a developed
foreign banking system.
As long as We have the present
banking and currency system. We shall
have panics-ard no longer. Does MI
this aIcn. cresc. state OF emergency
What doubt should there be Of IN. W
zency 81 this legislation Why should
4 TAX. another wss:e.ul and dsgraS-
ing ransc 90 Impress Congress- Why
cannot isv. suffice Their. are many
other things % prime Importance q
hc secured through monetary reform
bur 10 nothing were 20 be secured bot
7 "nsnci patton from ranics, there would
be abundant imperative reasons :o'
( i-urnesfa;, action by Congress.