The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-06-22
They Indorse Scheme
Devised by Monetary
Commission.
FEAR POLITICS
WILL CONTROL
Favor Central Bank, but Want It
Privately Owned and Under
Government Supervision, Lest
Politicians Hold Country's
Financial System at
Their Mercy.

New, York. June 2l.-Methods which
should be pursued in reforming the cur
rency system of the country, according
TO the views of the American Bankers
Association. were outlined to-day In
detailed statement issued by the cur
rency commission OF that organization
The statement, which answers thirty
three questions formulated by sub
committee of the Committee on Bank
ing and Currency of the United States
Senate, was prepared by the committee
which recently conferred at Atlantic
CITY. The commission indorsed the
currency plan devised by the National
Monetary Commission. of which Sena-
tor .Aldrich. of Rhode Isla nd. was chair
man. 1t made no reference to the bill
recently prepared at Washington with
the cooperation of President Wilson
Its recommendations. in fact were
| framed before the publication of the
administration bill The commission
| urges that whatever system is adopted
! be kept out of politics
Guided by Quotations.
The commission made no attempt to
! formulate a complete currency system,
! Its recommendations being guided by
| the question put 10 il by the subcom-
! Inittee OF the Senate. II did state Its
/ belief. however. that a central banking
! institution should be established, under
government control. No reference was
/ made as to methods TO be EMPLOYED in
! the regulation OF such An institution or
I the appointment or election of it's man
aging heads.
In expressing its ideas as to the es-
/ adjustment OF central bank. the
i q n I m SS htl
the creation of an institution similar
TO the great central banks of the prin
clpal European countries. points out
/ that the experience OF commercial ma :
ions is that results can he better ac-
complished by the creation of pri-
Yately owned central organization.
dominated and controlled by the gov
eminent. az, for instance, the Imperial
! Bank or Germany or the Bank of
France. II serves to take the matter
out of politics"
! The great danger" the statement
says. lis that If borrowers go direct
to the treasury. politics will become
an aH-important and dominating in
! fuence
In answer to the direct question
whether there should be "A central re-
serve association. with branches or n
number Of reserve associations, with
or without central control, the bank
ers replied:
In our opinion. one central reserve
association with branches would best
serve our present necessities. Failing
mat, small number of regional re-
serve associations, also with branches
might be organized to serve the nur
pose. The smaller the number of re
serve associations. however, the more
effective the reserve control. If there
are TO be number Of regional reserve
associations, they should be under soma
/ KIND OF control in which both the gov
ernment and the various associations
should have representations"
| TrbJect TO Bond Secured Currency.
The commission does not favor the
continuance OF bond secured currencv
the objection being that the volume
o' Our, eourre ,n is thus arbitrarily limited.
says. rs that the nations bonds. ' Which,
their choicest investment, are held al
most most exclusively by banks for circuia
,iom or government deposits"
The bankers do not commit them
selves to any definite statement
tWhnetner mere should be any change in
sne n present sent rsauirements of law that
% per cent OF deposits shall be held
as reserve The advisability Of such
neG G6dan nSon In ~, their opinion. would de-
tectcd. anu pio-
One Of the most important recon-
nmnstions is made in reply to the
,ho Should an elactic currency be au-
We believe that such currency
smouio De authorized by law" the an
sWeT runs, the amount to be CON
n, by the gold reserve require
be ample: not less than SO per cent as
n recognized minium''
Bankers Are Aroused.
Especial to The Times Dispatch
New York. June 21.--Heads of mn
eional banks have become so stirred
over me provisions of the currency
i DllI. WHICH NJ IL L.. -.