The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1916-04-29
CRITICISES FEDERAL BANKING
SYSTEM IN ADDRESSING BANKERS

lends his money, when the fact of the
matter is that it is not his money
at all; he has no money, be deals in
credit. A bank is public service,
founded for the convenience Of max
ing exchanges.
Not only is this 1nisconception of
the use of banks accepted by the peo-
pie themselves, but the lawmakers
labor in as great ignorance. Nor do
the legislators of the nation under
stand money and its uses. Knowing
of this ignorance, bought about six
ty copies of a popular treatise on
finances and sent as many senators
copy, but they never read it. Sem
ators don't read, they talk. The leg
| islation shows that.
"Public opinion is as vital 6. matter
to bankers as it is to politicians, and
for this reson. banker must keep
tab on the needs of the people, and
their ideas of business. When bet.
ter understanding is reached then
banks viii reach their highest state
of efficiency and will serve the uses
for which they are intended"
JAS. A. McCORD SPEAKS.
President Keith then introduced
Hon. Joseph A. McCord, governor Of
the Federal Reserve Bank, OF Allan.
ia, who had as his subject 'Ihe Fed.
eral Reserve Banks anad the Condi.
ton Which Made Them Necessary
i Mr.. McCord prefaced his remarks
with the opinion that some of his
statements would be very unpopular
with some present, but that he wa.
Convinced It would be only question
of time when they would see tht
matter in the same light as himself.
Every nation" he said, "has fin
ally reached the conclusion that ther'
must be some nationally eontrolle,
bank. There are the Banks of Eng
land, of France, of Germany, o.
Switzerland, and many others. On
two other occasions the Unitet
States has tried to establish a fed
eral reserve bank, but the secon,
time it was killed by President Jack
son. do not question his motive
. in doing SO, for I think he was sin
cere in the action, but the issue ha
been political one and controlle,
! by politics, hence they have been de
stroyed, and we destroyed the sinu
lization of any system of national re
serve banks.
, 'After this the banks envelope
along individual lines, and it remain
i ed for Simon P. Chase TO bring orde
out of chaos, after the Civil War"
j Here Mr.. McCord laid down tn
principle that the capital OF a ban
{ should increase proportionately wit
I the demands made upon 1t, for tn
i good of both the bank itself and til
! country in which it is situated. He i
!. Illustrated this rule by the actual RI
a suits in county in Georgia whel
: it was violated and the present cor
t dition is so many banks that thel
: is not sufficient bustnes to keep thel
o all going. Sooner or later, he pr.
5 dicted, a consolidation P = IRON, N
f take plaGescffer.
ri RESERVE BANKS NECESSARY
: wish now to discuss the condi
tons which made necessary the re
serve banks" said Mr.. Mccord
From practical viewpoint it is
) question of preparedness, and tn,
same conmon-sense rules of n1obili
zation of armies obtain in the mobili
zatlon Of money, which in the las
analysis is the reason of the fedora
reserve banks.
If IN time of war, would it b,
practical to send thousand men I,
montgomery, a thousand to Memphi
another thousand to Birmin cham. /,
IKE number to Jacksonville, and We
consider ourselves prepared arains