New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-10-27

vent unhealthy credit expansion and
panic"
But how about the present national
bank circulation, and the contention that
the same rate of discount is not prac-
/ ticable in all parts of the country"
These are details which can all easily
be worked out II the Senate committee
once makes up its mind that the sectional
bank idea must be abandoned. ! think
Mr.. Vanderlip is wrong in his proposal to
retire a portion of the existing national
bank circulation in order to provide for
an elastic issue of the notes of the central
bank.
Elasticity of the currency could be OBJ
tanned without any reduction Of the pres
| ent national bank currency. In the au-
! tumn months. when there is always an IN
! creased demand for currency, as well as
for loans. the central bank would easily
furnish the needed quantity. AS result
cur state and national banks would suf-
fer no reduction in their lawful money re-
serves, so that their lending power would
rot be lessened in the slightest degree
On the contrary since they would be abe
/ to rediscount good short time paper at
the government bank they would be IN
the best possible position to make al
vances of credit in the agricultural DIS
tricts of the West and South
In time of course, the national bank
notes would be retired. and through the
agency of this great government banK
that task would be done without disturb
ance to the bond or money market The
Bank of France did something much more
difficult when it paid to Germany $1,000
/ 100000 Of gold in 1911 without raising the
! slightest ripple in the calm sea OF Frehch
| finance"
! DO you think a central bank pan VI
any kind stands chance In TINS CON
| gress? VIII not all the Democrats vote
against It because of the platform dec
I laration?'
No Politics in Il.
There is no politics in finance re-
piled Professor Johnson. Lenders do
/ not discriminate between Democrats ana
Republicans. They won't even turn you
| down because you are Progressive
The men who wrote the Democratic plat
form. | am positive. had in mind the
| Aldrich plan when they declared against
a central bank, and so did every mem
Der Of the convention when he voted tor
the platform.
THE Aldrich plan is now in the scrap
heap. Let's forget it, What the Dem
ocratic party is really opposed TO- IL
seems TO me, is a central bank unper
| priyate control, and in this / think they
are right But d government controlled
| bank-the people owning the stock ana
having some voice in its management
| is an entirely different proposition. 1T
would be the great and unbeatable BANK
| of the United States. There could De
nothing more democratic in character
THE President of the United States
who would appoint the governing OIL
ficers as he does the Justices OF our
| Supreme Court, is the representative OF
the whole people and could be depended
| upon to see that every section hau
proper representation on this board
"Suck a bank. besides being our leader
and protector in finance, would relieve
| the Treasury Department of dangerous
responsibility, for it would take over INTO
! its vaults-under government CUSTODIAN
ship--sl, $50, 10000 of gold now held against
| greenbacks and gold certificates. ana
would redeem all this paper just as. 1t
would its own banknotes.
I'm the course of time this paper money
would find it's way into the vaults Of the
bank. and there would be in circulation
only one kind of paper money besides the
silver certificates. namely, the notes Of
the Bank Of the United States secured by
a mass OF gold greater than exists any
where else in the world.
81 have been hoping that the thorough
and conscientious study of the subject
which mas been made by the Senate Com
! mittee on France would finally lead them
TO this one right solution of our banking
problem, and / have not yet given up
/ hope"