The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1913-11-01
HILL AND WANDER
LIP warn BANKERS

James J. Hill and Frank A. Wander
lip, the speakers at the banquet that
closed the convention at Chicago
Thursday night of the Investment
Bankers Association of America,
each sounded a note of warning to the
business interests of the country. Mr..
Hill, whose subject was ''Railroad
Financing of the Future" declared
that "the country is waterlogged with
bonds.'
Confidence cannot be restored"
he said, "until the name bond has
won back something of its old stand
ard.n
Mr.. Vanderlip said that congress
was in danger of saddling on the coun-
try a %ruinous policy of fat money. The
senate, he said, was hesitating and
fearful of doing anything against the
wishes of the house.
Mr.. Vanderlip spoke on the pending
banking legislation.
1.-THE fatal defect of the Glass
BILL he said, CTS that it starts the
country on an issue of fiat currency.
The notes proposed are fat notes.
They have no reserve whatever pro-
vided by the government ana they are
to be loaned without limit to a number
of banks.
'There is no case in all history
where a nation has started on an is
sue of fiat money that the result has
not been a complete breakdown of the
financial system of that country
Advocates Central Bank.
Mr.. Vanderbilt urged, instead of
reginal banks, a single central bank
owned by the people and under gov
eminent control. Regional banks. he
said, were dangerous, as the same eli
mate and crop stress would affect the
entire region, bringing too heavy
strain on the resources of the bank.
Competition for reserves among
regional banks and forced investment
by national banks in regional bank
he also gave as fatal obiec-
tions. The central bank, he asserted. |
met every objection.
81 believe the intellectual Judgment |
of every member of the senate com
mitttee approves such a plan.' said
Mr.. Vanderlip. "Pohtieallv. how
some of the members see serious
obstacles. The fact that the house is
committed to a regional system is p
serious obstacle. The disposition of
the president not to consider or even
discuss any other plan thar the Glass
Owen bill is an obstacle. The d~eelara-
ton of the Baltimore convention
a central bank is a difficulty.
Were it not for these three things I
no doubt the senate committee
would be well on their way today tow
ard completing the bill for such a cen
trail institution"
IF the senate could be convinced the
public wanted a central bank. Mr..
Nanderlip concluded, "sound leoisla-
tion' might be had in thirty DAYS.
Favor Freight kate Increase.
A memorial to the interstate com
merce commission urging the commits
sion to accede to the application of
east of the Mississippi for
increase in freight rates was pre-
pared by the board of governors of
the Bankers association and unani.
mously approved by the convention.
me memorial represents that the
cannot make improvements un.
their incomes are increased.
In an interview Mr.. Hill said that
timidity on the part of fnanciers was
allowing a business recession to de-
velop. "This is the time for men TO
show courage he asserted. eff big
men are not willing to accept their re-
possibilities they should Law them
down. If responsible men would do
their part the depression would not
As for the politicians, it is use
to hope that they will put them
selves out of a job by keeping quiet"