New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-06-01
FOR CURRENCY REFORM
Opinions of Bankers Who Wish
to See Relief Afforded.
RECOGNIZE NECESSITY
Different Views Expressed in
Addresses Delivered and Re-
cent Letters Written.

Currency reform is a national question
at present. and the Importance Of sound
banking bin is recognized by business
men and the financial interests OF the
country In an address by William c.
Cornwell before the New Haven Chamber
Of Commerce on last Wednesday evening
the subject was handled al some length.
Among other things Mr.. Cornwcll said:
our present system Is no system at all
from q real banking standpoint.
Any sound system TO meet modern re-
quirements must do three things:
1. It must concentrate the gold re
serves.
30 1t must make II possible to convert
sound commercial banking assets into
cash.
%. Il must furnish an elastic currency.
our present system scatters the re-
serves throughout 1900 banks.
1T permits commercial assets TO lie use
less in 5000 bank vaults because there is
10 place TO turn them into cash
1T furnishes a currency which. instead
Of increasing i'm volume when il is needed
for business purposes and dying out
when the need is over, does just the op-
posite IS rigid and irreducible i'm amount
constantly grows larger. without the
slightest regard To business wants. and
would drive out all the gold in the coun-
try If We were not such an overWhclm-
inclv rich producing Countrv.
with no great central controlling Sys-
ten. We have no way Of bringing gold
into the country when VIC most need st.
or of preventing its outflow when We
cannot spare it, France for instance
takes our gold as shown by the recent
shipments. at a time when exchange Is
against such an operation and reserves
are low. and We are helpless TO stop IT,.
Our supply is at the mercy of the world
Monetary Commission Plan.
After the panic Of 1901 the National
Monetary Commission was appointed, and
the members began a most thorough and
exhaustive study by investigation in Eu-
ropc- of the methods OF other countries
and through expert ana financial testi-
mony. Their work extended over q
period Of years.
The result Of their deliberations was
the formulation AMI presentation of a bill
providing an cconomi1 remedy, workable
and efficient. and which has the merit of
being founded on an extension of the
existing banking outfit. This bill incor-
porated all the banks Of the country into
local associations, these in turn electinS
a head branch i'm each of fifteen districts
into which the whole of the United States
would be divided. the branches 10 elect
n central reserve association at Wash
ington. where the gold of the country
would be gathered in tremendously
strong reserve, and here and al the
branches the commercial assets of the
bank Under the present lack OF system
completely frozen in the bank Vaults)
could be readily turned into paper bank
notes to meet the requirements Of the
business Of the country. These notes
would be retired as the need diminished
thus making an automatic response 10
the rise and fall i'm the volume of busl-
ness requiring the use of such banknotes.
"On some such plan any reform must
probably he modelled, but the determined
prejudice of a great part Of the public
against what has been called the money
trust has led to criticism Of the None
tary Commissions plan on the ground
that the central reserve association
would be controlled by powerful interests,
allied ~lth the leaders of finance in this
country.
The bankers Of the country are in ia
vor Of any plan which will do the three
things mentioned at the outset namely.