Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1913-05-08

His Address to Bankers' Association
welI Received.

~ Abilene, president Of the Kansas
BANKERS association. delivered an
excellent address at the opening OF
the annual session this morning
over 1900 bankers are In attend
ance. He made strong plea lot
immediate action by congress on
banking reform. The association
has already manifested its interest
in the question by adopting reso-
luton urging revision Of the none
tary system. Mr.. Malott said In
part:
"since the last meeting Of this as
ISOLATION bankers and business men
throughout the nation have given
much thought to the need OF re-
form in our banking and currency
system. The Aldrich-Vreeland 'emer-
gency currency measure, created al
ter the financial crisis of 1907 to
serve as a corrective in case of an
other depression. will expire by stat
utory limitation June 80, 1914. the
country will then be in the same sit
nation that It found itself In the
autumn of 1907, subject to the same
embarrassing condition If there come
coincidence of great demand for
currency and financial stringency IN
the east. 1t requires years to re-
cover from such an experience ana
II is the part of wisdom SO TO ar
range our financial affairs that we
shall be able to weather any similar
storm without lessening the pros
perity and happiness of the people.
"All political parties In the recent
campaign expressed opposition 10
the National Monetary Commission
plan, while the party now in power
positively oppose any plan including
central bank. However. the lead
ers in congress and President Will
son have shown most encouraging
interest in such amendment to our
banking system as shall make Dusi-
ness interests safe from a business
crisis based on inefficiency In our
laws.
Through the work of the Ma
tional Citizens League, the Nation
al Credit Association and wide dis
cussion in every line Of business ac-
tivity, there has been awakened a
direct demand for some concrete,
helpful action that will insure sta
lbility to financial operations. The
business of the country is three
times that of 1897; the exports have
exceeded imports nearly $5OO,OOO'1
900 in the first eight months OF the
fiscal year, an unprecedented figure
Europe has called on us for $5O,OVOs'
600 in gold to keep steady its war
Idistricated industries.
'I believe the present admins
tration early will take up currency
reform, feeling that the country de-
mands action. While it is practi'
cally settled that a national reserve
association will not be established
there are notifications Of the plaI
that promise much relief Amont
these that Of regional bank associa
tions similar to our city clearing
houses, which shall have power y
relieve stringencies through som
form of currency issued agains
prime commercial paper, is reteiv
ing the serious consideration 1t ldc
serves.
mo plan appeals to me NOR
:, strongly than that of the issuanc
of currency based on SO per cen
Of the value Of clearing house loa
certificates. With the loans passe
upon by the clearing house con
mittee, with the system of ciearin
house examinations whereby n
bank can be a member which dos
mot habitually carry enough LOU
assets and cash to settle its dai
balances in gold or lts equl'alell
with every bank in the association
Joint endorser of the paper, v
would have a currency system tn
would meet every requirement al
sustain public confidence.
1--WE all know what an importa
factor the clearing house loan CT
tificates have been in times of fina
cial stringency. The New York cles
ing house has resorted to their u
nine times in the past fifty years
each time allaying public exciteme
and preventing forced liquidation
and the retirement OF these certi
Gates has been accomplished at
= average of four months time, FRI