Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-12-26

thereafter. Now am not complain
ing OF that situation; l am merely
stating 1t that you ma, know.
There are two things about which
just complaint has long been made in
regard to currency matters. One is in
reference to the reserves and the fact
that they are not under our present
system available for use but are tied
up: and the other Is that as to all
forms Of our circulating medium there
is no elasticity and 40 way to re-
spond to the needs of commerce and
trade. Now this currency bill proposes
to establish reserve banks located at
convenient points and to provide the
machinery for overcoming both of the
objections to our present system. That
is, in brief, the main purpose OF the
movement for currency reform.
Wide Difference Of Opinion.
"But right at the outset there arose
a difference of opinion on a vital prin-
ciple in the organization Of these re-
serve banks and the establishment of
this somewhat elaborate machinery
for fitting our currency system to the
needs of the business world. It has
been represented generally in the dis
patches that we who opposed the adj
ministration measure were obstruct-
ing the passage Of the bill and quar-
reling over details Of the bill. That
was not true at all. What was in
volved was great principle and 1t Is
important to know what that IL.
1T seemed to many Of US. and am
glad that in this matter all of the pro-
gressives agreed, that inasmuch as this
new system was to be established and
carried on, with It's almost unlimited
power over the business world, for the
benefit Of the people and to meet their
needs as we have found them In long
experience, and that It was to be a
convenience and q safeguard to the
public-that because Of this fact the
control should be retained. for the
benefit of the people, by the govern
ment. We insisted that since this
system was to become the servant OF
the people, the machinery Of It's OPP
Grafton should be in their control.
"As against this view the admins
tration bill proposed that the control
shall be with the banks and the bank
!. ers.
1--WE insisted, also. that the capital
for this system and for the federal re-
serve banks should be furnished by
other than bankers. Since the capital
invested in the reserve banks Is 10
bear a good rate Of interest 1t would
prove an attra ctive investment for very
many persons and especially for &
great many whose money is not now IN
the channels of trade. But as the bill
has been passed it contemplates that
the capital shall be furnished by the
national banks. Now there is good
deal Of doubt as to what the banks Will
get out Of 1t or rather how the smaller
banks especially will be able to make
good the loss of a part of their working
capital. The bill is one that is pleasing
to tile larger banks and bankers Of the
country. It Is their bin.
"These matters that were the subject
Of contention and argument. so far as
we were permitted to have any sort OF
discussion over the bill or to consider
its merits, were vital and related TO
principles and not to mere details.
The Plan Adopted.
. "The plan is to establish regional re-
serve banks and the boards that will
control these banks, hence control the
whole system, will be selected g major
ity by the bankers. Our proposal was
that q majority should be the servants
Of the public and be III a position as to
act impartailly In all matters. Now
I would not wish to say that bankers
will act purely in o. selfish manner ana
against thes interest Of the people, but
they are bound to see things from their
own standpoint, and to act in accord
ance with their personal interests.
Another very important phase Of the
matter is this that for years there has
been much complaint. and certainly In
part we'll founded, about the tendency
Of the times TO concentrate capital in
the large banking centers and to make
it possible for small groups Of finan-.
ciers to control the finsnces Of tho
country. The democrats have been FREQ
in their criticism Of this situation.
They have rallied against trusts and
combines. But now they have adopted
q system that makes legal the very
thing which has been objected to 30
strenuously. ~
1.-THE bill adopted legalizss IN tho A.
nancial world the very thing which tina
Sherman anti-tru law makes . crime
in the business world.
1.-THE issues which we sought to de-
bate ana discuss were OF vast import
ance to the American people. Those
Of US who fought for improvement Of
the measure did so In the confident be-
lief that we were serving the people in
SO doing. The adoption Of such q revo-
iutionary system IN regard to the hank
ing methods Of q great nation is 30 ini-
portant that 1t should not have been
disposed OF by comparatively small
number o. persona.
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