The Hawaiian gazette., 1913-05-16

What Is Meant by Currency Reform"

Currency reform ard tariff are to be the sole objects
of the present special Sesonof congress- according to the
latest annomeenentof Representative Underwood majo-
rity leader in the house and the spokesman apparently
of the President The tariff practically everyone knows
about, in more oress general way currency reform
something few, outside of the banking circles know any
thing about Pho following Is the plan of the Monetary
Commission recently pfesepted to eongress as Explained
by Amos X Fiske, in the current number of the North
American Reycw. lnasmuch as there lis certain to be
extended references to the subject of currency reform
in the press and magazines during the next sixty days
the explanation Of what it is all about should be Of in
tercst to those who amight otherwise suppose that any
currency reform With which William Jennings Bryan has
to do the G6nagf Of silver at that famous ratio
of sixteen to onG.,r,y- dol ..- ,.... I1.' g.
The plan submittedirythe commission says Mr. Fiske
proposes to associate the banks of the country together
by districts each WIFI Convenient center where az
trail organization sab maintained, in corporate form
1t provides central agency orr National Reserve Asso
cation, in which the district associations shall be duly
represented to be located at Washington and have GER
tain fiscal relations with the government This central
agency would operate chiefly through branches, at
the center of organization of each district These
in outline necessary features of the proposed system of
which details may still be regarded undetermined
Limits of space forbid dwelling here upon any but the
most general considerations affecting the purposes to
be attained but, with these kept in mind and partisan
rvaries excluded wholly irrelevant to the objects
aimed at, it ought not to be difficult reconcile differ
ences regarding essential details.
1t may be said in general way that the corporate
organization of each district association should fairly
represent the banks constituting the business
munlty which the banks 1t should, through
pcen committees exercise supervision its members
with view to soundness and safety in banking opera
ons in the district, and of commnica-
ton and of working relations with the central association
through its branch at the district The central
association corporate body should be representative
of the district associations Their members should hold
its capital stock pro rata of their capital and they
should have the controlling voice in its organization and
direction 1t should also act ms fiscal agency of the
United States government which should be duly repre-
scented in its management and should exercise defined
supervision in behalf of the public.
1.-THE manner of working out details of organization
and management may be here left OPEN and attention
directed only to reasons why this general form of unified
and centralized system is necessary For the issue of
banking currency the central agency is not absolutely
essential This junction might be safely retained in the
individual banks in their several districts provided an
effective plan of redemption through the district
was maintained But for effective system of reserve
the central association is most important There could
be plan for the holding of certain percentage of cash
reserve by each bank in its vault for current
quremens with supplementary at the district