Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1913-06-01

notes would be retired as the need
diminished, thus making an auto.
matte response TO the rise and fail
in the volume of business, requiring
the use Of such bank notes
on some such plan any reform
must probably be modelled, but the
determined prejudice of a great part
of the public against what has been
called the Money Trust has led 10
criticism OF the monetary commits
sion's plan, on the ground that the
central reserve association would be
controlled by powerful interests, al
lied with the leaders of finance in
this country. That this is an unjust
and preJudiced view l wish to show
| by means OF charts, because, although
under the new administration the cX
act plan OF the monetary commission
VIII not be advocated, ii is, never
theless, well to understand the orig
inal plan as a basis of forming q
creditable opinion on future propos-
ais.
, The New Plans for Currency Reform.
The bankers of the country are In
favor OF any plan which will do the
three things mentioned at the outset !;
namely, that will concentrate the gold
reserves; make II possible to convert
sound commercial assets into cash,
and furnish an elastic currency re-
deemable in gold. The committees
on banking and currency OF the con-
gress are hedged in by the provisions
of the Democratic platform, which
are against the Aldrich plan or "A
central bank. Fortunately, this does
not forbid a sound system on other
lines.
The plan OF these committees Is not
yet formulated, but there Is good
basis for belief that something like
the following will be the main fea-
tures:
The formation in each OF 20 or 30
districts into which the United Statee
will be divided. of what is described
as regional reserve associations. At
these various points the gold reserves
of the banks included in the region,
will be kept, and through these re-
ginal reserve associations, commercial
assets will be turned into bank notes,
redeemable in gold and based upon
these assets, such hank notes to be
turned over to the banks applying
for them as any time. These various
regional reserve associations will be
subject to the direction OF a central
board of cntrol at Washington
body Of men elected or appointed,
comprising government officials and
business men, who shall direct the
general operations Of the regional re-
serves throughout the country.
The present bank notes which are
secured by government bonds are TO
be gradually retired by substitution
of these asset bank notes. Probably
a discount market will be inaugural
ed by allowing banks TO accept paper
based on commercial transactions,
for their customers This may be as
far as the proposition will go, and
It will be noted that the plan, as far
as it does co. is sound, utili2es the
present bank machinery, will relieve
pressure for currency I'm active sea-
sons and will, 10 an extent conccn-
trate the gold reserves of the coun-
try, creating a number of reserve
machines, which, under the direction
Of the board Of control, at Washing
ton. can, however inconveniently, be .
used TO regulate interest rates and 10 /
control the inflow and outflow OF
gold to and from the United states. |
Serious Situation Next Autumn.
II is not for us now TO consider the |
details OF the plan. what must be |
impressed is the importance of the
passage Of a sound bank
ng bill, which shall be efficient to
place our banking and currency sys-
cm at once In position to meet suc-
the tremendous strain which
now exists and which will grow more
serious as the fall comes on, especi-
lily II the volume OF the business OF
he country does not materially dim
sh.
This is not time to let politics or
ideas conflict with action
or the general good.
There is every reason to believe. as
las been said that a very serious sit
iation will confront the country next
autumn and ~ gauupt ba tuu strnup- |