The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-06-01
BURTON FAVORS THE I
CENTRAL RESERVE
Ohio Senator Defends Sur-
rency Plan Proposes by
Monetary Commission.
POINTS OUT BENEFITS
Strongly Critaises the Region
al Associsaons Proposed by
Democratic Congress.

YOUNGSTOWN, o., May 31.-Sena
tor parton, member of the national
moyatary commission, in an address to-
night to the Youngstown Association Of
Credit Men, came to the defense of the
Central Reserve association proposed by
the commission in it's plan for financial
reform, and criticised as inadequate the
regional reserve associations favored by
Democrats in congress. Senator Bur
ton dec Jared that all the benefits that
might lie In the regional reserve plan
could be found in the central reserve as
well, and insisted that only through
some such central authoritative agency
could stability be insured in times of
financial storm The regional plan
operated with five associations, he said,
would probably prove vastly superior to
present conditions, but if twenty-five
or even fifteen associations were
created, he doubted if any benefit would
ensue,
"The objections 10 the regional plan
are in the first place that it is not truly
national,' said the senator. Separate
and unrelated organizations would seek
to maintain their own credit and supply
their own customers without regard to
the needs of others. There would be no
effective unity of action in facing a
financial storm.
Serious Panic Feature.
ttIt has well been said that the most
serious feature Of every American finan
cial panic has been the jealous and dis
graceful struggle of the different local.
ties to fortify themselves at the ex-
pense Of each other, instead of working
in harmony as they would under one
central association.
'EAll the advantages which can be OBJ
tained from the separation into differ
ent regional associations can be as ade-
quately and far more fully secured by
central institution. Under the regional
plan, in case any one bank should be in
trouble, it could have ready resort to
the banking resources of but a fraction
Of the country, while under central as
sociation plan it would have the imme-
diate support and backing Of all the
banks of the country. In times of slack
ness when a bank has surplus to in
vest, under the central association plan
it could seek the very widest field for
investment. field which under the re-
gional plan would be very much linn
tied. The two great objects-an ade-
quate and elastic currency and the
proper utilization Of reserves-can be
best obtained by central association. !"
Attacks Guarantee Plan.
! Senator Burton attacked the proposal
for the compulsory guarantee of bank
deposits as a ''taX upon well managed
institutions for the delinquencies of bad
judgment, imprudence or dishonesty in
the conduct of other institutions, for
which they were in no way responsible,
and whose errors they would have no
power Of preventing"
He replied TO the argument that un-
der the monetary commission plan,
money would flow to the great centers
of trade, by declaring that such flow
could no mora be controlled than could
the tide of population or the waters of
a river, and that the money would nat
urally seek places where il was in de-
mand, no matter what restrictions were
attempted. Control Of deposits so that
D.. ~ L Ia.
uses, he said, was necessary and fcas-
ible