New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-17
NASH URGES CAUTION
Banker Warns Glass Commit
tee of Financial TheOrlSt.
FAVORS CLEARING HOUSES
G. M. Reynolds, of Chicago, on
Other Hand, Approves in
Substance Aldrich Plan.
From The Tribune Bureau. ]

Washington. Jan. l6-"Beware OF the
theorist in hLance.' was the advice gwen
the Glass subcommittee IN charge Of cur
rcucy legislation to-day by William A
Nash. president of the board Of directors
Of the corn Exchange Bank. Of Ne"
York George NJ. Reynolds, president or
the Continental and commercial Bank, OF
Chicago, a 50 urged the House BanNihE
ana Currency Committee to proceed eau
tiously in its revision Of the currency
laws Mr. Reynolds was member OF the
monetary commission and he aPproNed III
Substance the Aldrich plan.
Mr.. NASH recommended the extension
Of the clearing housa system as the FIRST
reuuiste to q more elastic currency ana
better banking conditions. He said:
believe that In the creation of twenty
clearing houses representing stob! dpnl-
raliN the whole OF the country ana IN tue
protection OF Legality about thelr o'san'-
zption aud acts We take IN" hlSi Atcp9
toward the solution OF our so-'"'c, H''li
cul'ics. / have an opinion ihtsc dllil' ~
ties Hrc much lesS Than are roP''d''N -
serted
II is my belief that the use OF The eS-
iStlng system Of clearing houses lOi LHS
the best and least disturbing pass IV'
the expansion %; credit ana the supply
of currency.
Mr.. Nash was caustic ~ his criticism
OF theoretical nnanciers. lie said.
With the emergency currency OIL on
our statute books, ! dld not H'S,tat'
ssv that ! believe that th' lsSG' VI GO -,
ing house loan certihCatc> az over w
country would he au;omatlcauS itSoIl 80
10 In case OF a financial panic. iHe "a
SON is pIsin The bankers ana the peopIe
who trust them with then none ii
derstaud this often tired ana ptri,DJIG,
successful device ioI eHp"'ii,'5 .it,Ia
temporarily or uHtI y "'''
"SWJ YIN. then. should We dsregard such
well known method ana seek lVI S"',.
vlau that has It's birth 10 'u' ~ 'I'il',io,
tho thcorist In finance And the lteol!'.
IN finance II more In De nIe'''"
pull in a China shop .ta.,,., issued
The history OF loan certificates lSsNe.
hy clearing houses * mot OK lH' I NJ
brilliant device known To IEdh''. "
- - Work clearing House has itsV' tel "
tb,r, MIN. fines i'm the last MY F'H'r
always allaying thereby plbIl' IN 49,.
and checking forced liquidation anu l,e
T.tir,u.ut and redemption ma Ir'N ~,
,o,''ni'sbel Al An average OF foui iHo'b,0
tj,nr from the FIRST issue ana Withou, II.
t.ss OF nrc dollar 10 the banks, "nlSh ~
clearing house rules ue'"mv Jo'I' 81"
dorscra upon every ceitih'a'' 'sN"'".
Roth bankers told the commiite" that II
vas not NECESSARY for America Y" '"ps
n no. cd the establishments OF central 6@nG
l',,iI,T 10 the Bank OF England. Nh'h
chairman Glass asked FOR an 'pln,o,,, "I'
rcgiouaI reserve banks or asso,lau c a.
Win supcry. sing treasury hoaI d. a.,
E"'rorF- g.id he thought such a pan
wouid work n the supervising board nah
sufficient power ana absolute ''hNo' over
fhe issU" ~ notes. 80
NAKED h. tho MuuefarE commission p'h'.
tha Witness Insisted vas not u 'rh'iS'
bank and was free from the chi"i on,
ic~tious usually urged asalnsi q crnNh.
nan, If, declared thFt system "i
,.g,,ruI HaukS would not PROVIDE Tor we
nc interchange ~ credit and would re-.
sult I'M the use ~ ohc "'.n0o being Iost
while II was O-lng iransp9rt"a rom