The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1913-06-27
Senator Weeks Thinks Dozen Reserve
Banks Would Not be as Rene-
f,elaI az Would
Only Ono.
LIKE THE WATER SUPPLY
Uses City Reservoir as Illustration to
Explain His objection to tho
New currency
Proposition.

UNITED Press Leased Wire Service
WASHINGTON June II. Compat-
ing the currency system to arrange
ments a city might make for water
for fre protection. Senator John w.
Weeks OF Massachusetts, today upheld
the Aldrich central bank scheme as
against the twelve regional reserve
banks proposed by the new Wilson
Glass bill. In special statement pre-
pared for the United Press the cur
rency expert and member OF the AL
drich monetary commission declared
the water supply OF city would be
more effective II collected in one
reservoir instead Of being distributed
in twelve tanks and applied the same
reasoning to the currency bill. His
statement follows:
by John W. Weeks, United States
senator from Massachusetts,
The three serious defects in our
present banking and currency system
are: First, the unwise ard ineffec-
tive location Of bank reserves; sec
ond. the lack OF elasticity In our cir
culation 50 that 1t fails to respond IN
issue and retirement to the CONNER
cial needs OF the country; third, she
inability o6the banks to cooperate and
make use OF their united resources In
time Of need
ThS reserves OF the country are
scattered IN $4,000 banks. The admin
istration bill proposes to confine them
at least very largely to twelve region
al reserve banks, the banks own
vaults and small proportion to be
carried in other banks. The advan-
tage claimed Of this over other meth.
DDS Is that one-third OF the reserves
will be carried in twelve repositories.
TO appreciate the advantage OF this
q comparison with the water supply
for fire protection were provided in
q large city but distributed in tanks
connected with each building while
the total supply might be sufficient ii
could not be used to advantage In
time of need Anyone can see that
1t would be much wiser to have a por.
ton OF this supply collected In twelve
places and possibly that method might
be sufficiently effective to answer
My Judgment is, however, that !.
would he much more effective If II
were all collected in one reservoir
That Is one reason why favor a cen
tral reserve association to carry sub
stantially all Of the reserves Of the
country. Our circulation, made up OF
gold, silver. green backs and national
bank notes Is sodden mass which
does not issue and retire in response
to business demands and has compar
atively no relation to commercial
needs. The circulation OF a country
should be based on gold and prime
commercial paper. 1t should be is
sued and retired automatically gov
erned by provisions OF law regulating
Its issue and retirement In this de
tall Pm not In accord with the pend
ing bill which provides that the impor
tant questions we'll as others should bs
TcSuidLeu Oy ceHtTdi oodTu Known ds
the reserve board. This, believe
might greatly endanger the stabilit,
OF our banking and currency ant
credit systems, which are OF the mos
delicate nature and should not b.
placed at the dictation of any bog o
men, either politicians or bai srs
There is no necessity for doins thi'
for the law may easily be drawn Il
regulate the power which 1t is propos