Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-03-13
TELLS DEFECTS Of
BANKING SYSTEM
New Yorker Lectures on Credit
System Before Board
of Trade.

Defects in the present credit sys-
TEN and details of a new plan which
he advocated were explained by
Deputy Comptroller Edmund D.
Fisher. of New York. at a meeting Of
the Board Of Trade last night. He
was introduced by President A. V.
Hamburg, of the trade board, who
declared the Importance of the cur
rency question was as great as the
tariff problem.
Mr.. Fisher spoke on the Weak
Spots in Our Banking System and
declared he believed the coin difficult
ties had been settled and the prob
lem at present is to maintain the in
tegrity of the credit dollar He
pointed out the danger of what would
happen If the dollar was 100 per cent.
ane. and It should suddenly drop to
so per cent. fine. He added that while
this calamity is lost sight Of when
i. comes TO the credit dollar, yet
there was an instance in New York
duuring the panic when the credit
dollar was worth but IS per cent.
The speaker commented on the CEN
tral national bank as advocated by
former Senator Aldrich, with
branches similar to the Reiehsbank
Ia Germany. He asserted his belief
that under the Democratic impetus
such q central institution was looked
upon as involving too great a danger
and that the present tendency was
to decentralize.
He declared that possibly there was
an element of danger in both plans
md further averred that the people
in this country are "a little too in
dividual and not broadminded
enough" The principal of mar
ginaP' and continuing" control,
which he advocated could be carried
out by the establishment of a United
States National Reserve, declared the
speaker. This body would consist of
fifteen members.
The personnel of the board should
be composed as follows Seven bank
ers to be chosen at large by com
mittee elected by the various State
bank associations; three merchants,
to be appointed by the President OF
the United States; four United states
officials. to hold office by virtue of
their position. namely. secretary of
the treasury. treasurer of the United
States. comptroller of currency and
the secretary of the Department OF
Commerce and Labor, and one man
appointed by the President and con-
firnled by the ma ority of votes of the
previously named fourteen members,
In explaining the operation OF the
national reserve. Mr.. Fisher said;
The proposed United States National
Reserve should be consolidation OF all
the reserves of such number of sub-re-
servo or regional banking units as may be
regarded sufficient to serve all sections OF
the country rhese regional banks should
be given such banking powers as would
able them to maintain effective control
Their deposits and reserves should be
interchangeable al the discretion of the
National Board of Trustees. and should
be subject to such regulations as 10 uni
fornity of method and discount rates
as may be imposed by said board
These regional banks should be man
AGED by board of directors elected on
basis fairly representative OF Inc sec
lions of the country they would serve;
They should be empowered to issue ana
redeem currency, under appropriate re-
strictions coincident with the gradual
retirement Of all national bank notes, ali
Of which functions. however should he
subject to the supervision of the Ma
tional Board of Trustees.