The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-20
WORLD BANKERS
BACK NEW LAW
French. English and German
Leaders Pledge Inter
national Support.
NEW YORK IN LINE
James S. Alexander Promises
Full Cooperation With
Currency Act.
OPTIMISM Is KEYNOTE
Representative Gathering at
Big Banquet Sees Success
in New system.
OPTIMISM Is KEYNOTE

in New system.
Repre- OF every powerful
banking interest OF the country. repre-
sentatives of every important bank in
New York city. general f,nanciers ard
the heads OF great industrial and rail-
road enterprises participated In ono of
the most notable dinners OF the Assoc
ciatcd Banks OF the City OF New York
at the Waidorf-Astoria last night.
The dinner was important for two rea.
sons. James Is. Alexander of the Ma
tional Bank OF Commerce, president OF
the association. pledged the help Of New
York to make the new Federal reserve act
a success.
Financ!ers and economists OF Germany,
France and England. the three great
money powers Of the world. welcomed the
United States into the realm OF interna-
tional banking.
Mr. Alsxandors words promising sup
port. coupled with the hope that improve
inent will be brought about by subsequent
amendments to tho law, were heartily ap-
plauded, and the scholarly. earnest and
comprehensive addresses OF the visiting
The visitors were Professor Doctor
Jacob Rieeser OF the Deutsche Bank OF
Berlin. Robert Mason Of the Credit Lyon
nais, and James II. Simpson. manager OF
the Liverpool Bank. Limited
List q who's who in New York.
There was not enough room In the grand
ballroom OF tho Waldorf-Astor!a TO seat
the company last night. Tables were
-. L.. 81 stsat e to,
the aicoves and under the gallery. When
all had found places one could have
written n who's Who IN business IA
New York by taking the dinner list
Mr.. Alexander, who presided. had at his
right hand Or. Riesser, who came to this
| country to make the address. To DR..
Riesser's right was Jacob II. Schiff Then
came A. Barton Hepburn. William A.
Nash, Paul NJ. warburg. Mr.. Simpson.
Major-Gen. Thomas II. Barry. Banking
Superintendent George c. Van Tuyl, Jr..
William Sherer and Col. Frederick L.
Farnsworth. To Mr.. Alexanders left
were Mr.. Mason. George r. Baker, Arthur
Reynolds. Frank A. Vanderlip, tho Rev.
DR.. Ernest NJ Stires. Francis l.. Hire.
Albert II. wiggin. Capt. Albert Gleaves
L. $. N: Robert II. fireman and Charles
A. Hanna.
In his Introductory remarks Mr.. Alex
ander said that tho business OF tho
COuutEy uao pccu ppoicb INC
! OF prolonged Congressional delay In the
| important legislation promised by the
, Democratic party. Business men now
know what they have to face In the tariff
| and the currency and are Ievotng their
i energies TO adjusting their business to
! the tariff while tho bankers are studying
! 20 conform to the new currency law. They
were not gathered. however. TO discuss the
| Federal reserve act and he would only
say that Il contained many admirable
| features.
Secs Great Power In board.
| Perhaps no board or commission ever
! created by law since we have been II
! nation" he said, has had the power for
! veal or for woe that Will be exercised
| by the board that Is about TO be- created
| under this act.
| "lt is the experience OF mankind that
! prudent and wise management and direc-
| ton Of "A system that may not be tho per
! lection of reason on its face will produce
better results than are attained by mex
perienced managers Of a system that on
paper may be perfection Itself"
MI Alexander then pledged the support
! OF New York to the new law and con-
| cludcd by saving that the association D"-
l,eves that IL can be improved in I'm
! portant particulars and tine members 'N'
poet that Congress aud the President VII
| provide the amendments as the ttl'' ~
| become apparent.
Dr. Re!sser's them. was 1.-THE German
Banks and German industry" iic s,.Id "a
the outset that ne would discuss only *
| perienCes in developing the German bank
ing system. He described the Reichshauk
the central bank Of issue. seml-publiS
institution under the supervision Of IN,
empire with private stockholders
Relieve in Central bank.
| In Germany. IN principle. we bcliov,
a single central bank of issue TO be an an
solute essential" he said, land II this enc
Is not attainable, tn have as few private
notebanks as possible coexistent with tn,
central institution"
DR. R!csser described tho :,dministra
} ton OF the ReIchsbank and the supervision
} by the Government. and continued.
From our point OF view u banking
law Is doomed to failure If ii gives an.
power in any important part Of the man
| agement, except In supervision, TO polite,
or to leaders in politics. who generally
lack banking experience. Politics may
some times spoil the character, they vii
always spoil business
I'VE believe that any banking k.s sa
ton which IL guided nv purely imperrona,
| motives must secure for the management
| of the central bank of issue the Coopera
ton. though not the domination. OF thos
, expert elements, VI such u bank can full
III its duties TO the nation only b.
wording hand In hand with the othe
banks When l want to build
house | call In architects and bricklayers
not tiddlers-not even good fiddlers"
In his description of the German bank
ing system Prof. Ricsser said that its SUE
cess had been instant and genuine.
hau handled every financial problem
pres nted 10 It, not only by tho empir
bG, by Industry, 1t had even lowere,
tho discount rate below that OF England
Frances Elastic System.
The financial system of France orig!
mated by Napoleon and backed hy hin
was tho theme OF Mr.. Masson's address
and the bankers themselves, although
they knew It already, could not help ap
plauline as they heard OF the wonderful
7 elasticity OF the system. Its discoun
rate from 1898 to 1912 touched pc
cent. only once. IN 1899. and the aver
age was 33 per cent.
France congratulates the United State
on It's new system OF currency. at wi
he a great relief for all concerned" MI
Mason explained, ITO know that tn
American market will henceforth be spare
the anxieties OF 1907"
Mr.. Mason spoke of the unprecedente
demands to be made upon the none
Of the world in the near future, Govern
ment bonds and other securities, and thl