Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1913-11-25
PROF. w. A. SCOTT
A Splendid Talk Upon Currency Re-
form Before the Universalist Mems
Club Friday Evening

form before the OnlVeEsdist rien
Club Friday Evening
Last Friday evening the Mems
club of the Universalist church gave
supper in the dining room of the
church which was attended by about
70 of its members. AS usual the en-
tertainment committee had prepared
for a rich educational treat TO follow
the supper. 1t was talk upon ''Cur-
rency Reform by Prof. w. A. Scott
of the University of Wisconsin.
When the tables had been cleared
and all supplied with cigars, c. G.
Gawkey, president of the club, intro
duced Prof. Scott, referring to the
fact that the gentleman had given
the members of tie club an excellent
address once before upon the money
question. This was given at a time
when the Aldrich bill was being con-
sldered. At that time, Prof. Scott
was very much opposed to our pres
| ent monetary system, and was doing
all he could to bring about some kind
of a change that would be beneficial
to our country.
On Friday evening he took up the
Glass-Owen bill as it has passed con-
gress. He gave an outline of that
bill and what was intended to accom-
plish by its passage. He went on to
say that when it was evident that
the democrats were going to win,
the men of our country who had Civ
en- much time to the study of the
currency question were invited to
submit plans for currency reform in
accordance with the democratic plat
form. The men called in were not
considered as to their political beliefs
but the end sought was to secure as
near perfect system of currency as
could be formed. After many propo-
sitions had been submitted and after
much deliberation the bill known as
the Glass-Owen currency bill was sub
mitted and passed by the lower house
OF congress. That the bill provides
for twelve reserve government banks,
each of which is to be a parent bank
over those national banks which come
under it. If, for instance, the banks
or any one of them under a reserve
bank has more call for loans than
it can meet, under this bill, if it be-
comes law, it can turn its assets or
securities over to the reserve GOV
eminent bank and secure whatever
money is needed to supply the wants
of business men in their communities.
The same condition will prevail in all
sections of the country. 1t will be
seen at once that this will provide for
an automatic expansion of currency
and there need not be any more
tightness of the money market. Prof.
Scott went into the details of the bill
and took many of the arguments
against it, told of the fights which
were made to secure certain ends.
He particularly handled the bankers
of the country without gloves. He
showed that instead of having no
control in currency matters as they
say, under the new bill, if it becomes
a law, that they are absolutely in
control of conducting the reserve
banks, but when it comes to passing
upon their own securities, rates of
interest, etc, then of course, as it
should be, those matters will have to
be passed upon by others higher up.
The bankers did not relish the idea
of being compelled to furnish 20 per
cent of the capital for these banks.
Prof. Scott threshed this out very
thoroughly. He thought it would be
very easy for the capital to be secured
from private sources, bot in such
case the banker should not be con-
Sidered in the matter of control of
the reserve banks, as they would in
no way be interested. This question
on being submitted to several groups
of prominent bankers, as to whether
they would prefer to capitalize the
reserve banks and have control or not
to capitalize and be out of the control,
they each voted decidedly in favor of
the former.
At the close many questions were
asked of Prof. Scott, which were
readily answered and discussed. One
on the Interpretation of commercial
paper brought out quite lengthy
discussion. The address lasted over
two hours and was very interesting
to all present, and it is sure that all
went away with much better knowl
edge of the question than they had
when they came there. In fact, many
who were opposed to the bill saw new
light and had their views changed
materially.
Prof. Scott. while he would prefer
to have some changes made in the
proposed law, greatly favored it in
that it would render the currency
more elastic and more responsive to
the needs of commerce and business
1t was a splendid as we'll as success
full evening of the club.