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SUPPLEMENT to l i s t o p p e n d in g i n v i ­
t a t i o n s POP SENATOR ALDRICH TO DELIVER
ADDRESSES.

FLORIDA.
f
i

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TAMPA:
L e t t e r d a te d N ov. 1 3 , 1 9 0 9 .
From THOMAS J . L .
BROWN, “ r e s i d e n t Tampa Cham ber o f C om m erce.
P
'
To a d - U
\
d r e s s a CONVENTION OF BANKERS OF THE SOUTHERN STATES f \
V
a s g u e s t o f h o n o r , a t b a n q u e t, F eb ru a ry 1 6 , 1 9 1 0 .
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D in n e r , e v e n in g .
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INDIANA.

or

t t .e r d a te d N o ^ | 2 3 , J # b 9 .
/from .H E R B E R T
P r e a t .'la n d j f e r | W a v e r |y C9 4 ) 1 P v e b i d e n t
o c f e t i ^ h . % S eco n d ^ ^ h v it & f io t i t o
r a r a u n 1 THIS. SECTION" i n J a n u a V v .

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LOUISIANA.

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NEW ORLEANS:
L e t t e r d a te d N ov. 2 4 , 1 9 0 9 .
From LYNN H.
DINKINS, P r e a t . I n t e r s t a t e T r u s t an d B a n k in g C o.
G e n e r a l i n v i t a t i o n t o d e l i v e r a d d r e s 3 i n New O r le a n s
a t d a t e t o b e f i x e d by S e n a t o r A l d r i c h .

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NEW YORK.
TROY:

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L e t t e r d a ted D ec. 1 6 , 1 9 0 9 .
From HENRY COLVIN,
ti
C h airm an G roup V , N. Y . S t a t e B a n k e r s ' A s s n .
R eH 'l
f u r r in g to p r io r i n v i t a t i o n , s t a t e s th a t d in n e r s a r e
*
u s u a l l y h e l d on S a t u r d a y e v e n i n g s .

BUFFALO:
L e t t e r d a te d N ov. 1 0 , 1 9 0 9 .
From JOHN N.
KLOEPJER (H am burgh, N . Y . ) , T r e a s u r e r N. Y . S t a t e
r
u
B a n k e r s ’ A s 3 n . , an d C h airm an o f G roup 1 .
To a d d r e s s
/
" 1 - ' ^ a n n u a l m e e t in g a n d b a n q u e t o f GROUP 1 , NEW YORK STATE
i
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BANKERS' ASSOCIATION, a t B u f f a l o C lu b , d u r in g D e c e m b e r ^ ' i ‘
f / i ’P ) o r J a n u a r y , a t t im e t o be f i x e d by S e n a t o r A l d r i c h .
D in n e r , e v e n in g .




(6)




NEW YORK —

continued.

BUFFALO:
L e t t e r d a te d L ee. 9 , 1 9 0 5 .
F roia SAMUEL ELLIS
( A s s t . C a s h i e r M f r s . and T r a d e r s N a t l . B k . ) , S e c r e t a r y
G roup 1 , N. Y . S t a t e B a n k e r s ' A s s n .
To a d d r e s s a n ­
n u a l d i n n e r o f GROUP 1 , NEW YORK STATE BANKERS' AS 3 0 CIATION, i n J a n u a r y o r F e b r u a r y , 1 9 1 0 , a t t im e t o be
f i x e d by S e n a t o r A l d r i c h .
D in n e r , e v e n in g .

OHIO.

'

CLEVELAND:
L e t t e r d a te d N ov. 2 3 , 1 9 0 9 .
From MUNSON A.
HAVENS, S e c ' y C l e v e l a n d Cham ber o f C om m erce.
H o p es
t o h a v e Chamber o f Commerce h e a r S e n a t o r A l d r i c h "a
l i t t l e l a t e r " , v i z : a f t e r m e e t in g o f C o n g r e s s , when
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l e g i s l a t i v e p rogram f o r th e s e s s i o n i s a s c e r t a i n e d .

i

, .CINCINNATI:
L e tt e r d a te d D ec. 1 4 , 1 9 0 9 .
From W. S . ROWE,
C o m m e r c ia l C lu b , C i n c i n n a t i .
A c k n o w le d g e s a c c e p t a n c e
" v
o f i n v i t a t i o n t o a d d r e s s COMMERCIAL CLUB OF CINCINNATI
on S a tx ir d a y e v e n i n g , J a n u a r y 2 2 , 1 9 1 0 .
D in n e r , e v e n -

/ a/ .

V

le
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TENNESSEE.
NASHVILLE:
T e le g r a m
d a te d D ec. 1 5 , 1 9 0 9 .
Prom E . W.
POSTER, P r e s t . N a s h v i l l e B o a r d o f T r a d e .
To a d d r e s s
NASHVILLE BOARD OP TRADE a t S e n a t o r A l d r i c h ’ s c o n v e n "
ie n c e .
L uncheon, n oon .
( A l s o t e l e g r a m o f D e c . 15
.,w
fr o m GEORGE M. REYNOLDS, s e c o n d i n g a b o v e , an d u r g i n g
p r e s e n c e on D e c . 2 3 . )

RHODE ISLAND.

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PROVIDENCE:
L e t t e r d a t e d Dec* 1 6 , 1 9 0 9 .
Prom RATHBONE
GARDNER, P r e s t . U n io n T r u s t C o.
S econ d s p r io r in v it a t i o n o f Mr. S t o c k w e l l t o a d d r e s s ECONOMIC CLUB OP
1
PROVIDENCE " a t a n e a r l y d a t e . 1
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;

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Nov.

8,

190 9.

C o m m ercial

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C lu b ,

E R K IN S .
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LO U ISV ILLE

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K E ’ TTU C K Y ------c o n t i n u e d .
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CLEVELAND:

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MUNSON

A.

HAVENS,

m erce.
d ate

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to

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by

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2 2 ,

190 9.

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PENNSYLVANIA - PH ILAD ELPH IA :

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PEN N SYLVA N IA ,

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continued.

EDWARD

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7,

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19 10 .

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address

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14 ,

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19 10 .

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D e clin e d .

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L e tte r

A LD R ICH ,

to

CLUB
Nov.

OF
24,

S e cre ta ry ,

C ITY

CLUB

dated

B a rn w e ll.

A ld r ic h to v i s i t
to M acon , Oa.

in

C o m m ercial

on

SOUTH

K

at

HERBERT

C o .),

To

BOSTON

M in n e a p o lis,

CO M M ERCIAL

W IN SH IP,

Trust

B oston .

re fe rred

Se creta ry

L e tte r

&

From

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address

its

D.

s /

BANK

m eetin g

in

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sent

address

190 9.

Dep.

of

A SSO CIATIO N

In v ita tio n

BARTLETT,

15 ,

Safe

A ssn,

190 9.

A ld rich

Sep t.

(B oston

O ffic e rs '

O FFIC ER S’

BOSTON:

dated

O ct.

of

Nov.

12 ,

190 9,

C lu b

o f

BOSTON.

B oston

Sen ator
to

S.

B oston .

L.

/

To

D e clin e d .

190 9.

From
C itv

Thursday,

AD D ISO N

C lu b .

D ec.

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/

ad-

190 9.

CAR O LIN A.
27,

190 9.

P erson al

Pudge

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in v ita tio n
on

th e

»Tud(^e
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ROBERT

Sen ator

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trip
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H

THE

CURRENCY

Q U ESTIO N .

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seem t o b e r e p e a t e d
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co u ld

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w ith

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i t ,

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upon

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the

past

p erm it

15

or

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y e a r s , and th e s e v e r a l "c a m p a ig n s o f e d u c a t io n " t h a t h a v e b een t h r u s t
t o g e t h e r w it h t h e i n v e s t i g a t i o n s o f th e M o n e ta ry C o m m issio n ,
upon u s w ith in th a t tim e ,^ th e re is
c e r t a i n l y no l a o k o f e x p e r i e n c e o r
in fo rm atio n
pared
th e

to

deal

co m p lexio n

years,

and

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o f

th e

barks
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w ork

th e

w ith
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su b je ct,

th e

Congress

d e la ye d
o f

and

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190 8,

w ith

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out

create

a

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by

V R EELA N D -ALD R IC H

d ire ctio n ,




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as

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th e ir

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th is

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a ll

w o u ld

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exist

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c o lla te ra l

m uch

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several

cen tre;

fin a n cia l

up

approved

and

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a ll

uses

re lia b le

each

n e c e ssitie s

th at

is

p e rfe ct

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u n p ro fita b le

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th at

th e

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and

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th e

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m ade

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th e

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p la o e

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on

1 9 0 7 ------- s a v e d

can

be

i t s

co n d itio n s

C e r tific a te

m ore

and

th at

to

w ill

any

at

has

"e la s t ic it y "

p e rfe c t,

strin g e n cy ;

banks

or

fo r

fo r

th at

one

a fo re sa id

th e

currency

C e r tific a te ?

ar

va ryin g

fo r

b u sin e ss

e ffe c tiv e ly *

fir s t

u sin g

p ro vid e

regard

tim e s

red em p tio n

it

how

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as

or

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s e c u ritie s ,

banks

system

rem ain s

b e tte r

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th e

a

betw een

n o th in g

and

such

th at

c ircu la tio n

w e ll

m ore

C le a rin g

b a la n ce s

as

in cre a sin g

d ire ctio n

18 9 3—

H ouse

th e

and

rig h t

1 8 7 3 -------1 8 8 4 —

Act

la rg e ,

co n sta- tly

b e s t 'e m e r g e n c y

th e

how

in

th e

nearer

o f

and

in ve n te d »~ a n d

p reve n tive ,

w ith o u t

used

as

in

th e "C le a rin g

p ro m p tly

th in g

ever

vast

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e ffic ie n tly
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such

re su lt,

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to

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th e

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how

is

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p e rio d s,

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dem ands

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cou n try

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g ro w in g

no
per

m uch

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ca p ita ,

in cre asin g

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o f

about

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is

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w ith ,
ip

th ey

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arran ged,
m em bers

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a

Banks,

gency,

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th e
in

sam e

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w h ic h

th e

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th ey

w o u ld

Banks;

no

lo n g e r

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an

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very

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kept

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a

H ouse

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th e

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in

the

sane

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th e ir

> VM, 3



In

th e

cou n ted

se cu rity ,
th e ir

o f

as

ft ate
at

o f

be
Banks

l e a s t , >vith

upon

by

o f

as

m ay

be

fo r

it s

th e

s tr in ­

th e ir

cu rren cy,

in d u cem en t

sam e

not

tim e s

c a ll

share

^he

reserve

in

to

in te re st

it

exten t

be.

cle a rin g

Banks,

by

th e

sh o u ld

a ll

C o u ld

p erm itted

p la ce

th rou gh ou t

d ep o sits

be

be

fir s t

n t a t 'i

ce rta in

be

fo r

ra te

o f

H ouse,

th e ir

as

case

th e

but

checks*

depo s i t o r s , t h e y

o f

very

&

and

re q u ire d

o f

re tire m e n t,

fo rtu n a te ly

th at

to

m eans

T h erefo re
o n ly

cu lle d

sum s

in

su cc e ssfu lly ,

m

lo a n s.

. .

not

m em bers

th e

th e

upon

ad d itio n ,

and

in

c ity

spread

som e

b e n e fits

th e

checks

d u rin g

th in

o f

re­

not

w ith

th e ir

am

d id

secure

d e p o sit

I

w ere

com p an ies

order
on

p r a c tic a lly ,

co m p an ies

not

dem and

s m

tru st

tru st

in

out

la rg e

advanced

th e ir

th e

reserves

bank

c r is is

w ork

1 9 0 3 w h ich

th rough

th e

w o u ld

am ong

and

through

any

p a n ic

th e ir

w ere

in

th at

A sso cia tio n ,

part

m anner

how

th at

but

c a llin g

sam e

O ctober,

b a la n ce s

passed
even

by

c o lla te ra l

and

In

course

c e rta in ly

co n tro l.

a

th e

p ro b ab ly

th at

tim e .

of

e xtra­

needed*

th e

th e

la w s

w ill

o rd in a ry

fo r

th is

use

it

N atio n al

th e re o f

th erefo re

c f

banks,

and

a s s o c ia t io n , co u ld

th e

illu s tr a tio n

th e

R tate

at

In

general

under

p ro vid e

needed

th at

a s s o c i a t io n , t o

o f

m in d ed
th e

b oth

d e p o sito rie s

pay

fo r

G overnm ent

co n sid e ra tio n
d e p o sit

To

o b sta cles

co n tro l—

o f

u n ifo rm

proper

fo r

when

o f

and

upon

by

currency

in su rm o u n tab le.
sohem e

under

o f

so.

is

p ro p o sitio n

com posed

cle a rin g

Banks

any

b e in g

th at

re sp e ct,

m eans

the

su p p ly

co n tin u e

a ll

th at

no

vfith

are

not

is

G overnm ent

co n fro n ted

th e

doubt

th at

under

course

no

in

by

conceded
be

annum ,

th e re fo re ,

are

a sso cia tio n s

la tte r

w ill

co n d itio n s

g e n e ra lly

o ou n try
Ve

and

co n d itio n s,

a tta in in g

per

run
th e
and

on

cases

Banks

c' eared
th e

b an ics
by

o f

th ere­

n a tio n a l
w ere

to

tru st

fo r

th at

m eans

w ith o u t

(4)

t
Had
la w ,

an

by

w h io h

cu rren cy,
and

th e

th a t,
vent
and

a sso cia tio n
th e

banks,

a ssista n ce

p a n ic

th e

am ong

th u s

w ere

th e

on

co u ld
th e

k n o w led ge

p an tos

e x iste d

d e p o sit
have

tru st

o f

th e

o f

such
o f

been

by

co n tem p lated
se cu rity ,

rendered

th at

th e

as

proper

co m p an ies

fa ct

possessed

cause

here

banks

p a n ics— -la c k

o f

at

once.

reso u rces,

w o u ld

And

co n fid en ce—

present

secure

and

and

in sp ire

th e

o n u ld

im m e d ia te ly

ended

such

hy

fr e e ly ,

asid e

power

fro m

to

pre­

co n fid e n ce

w o u ld

g en e rally

d isap p e ar

e n tire ly .
At

any

rate

A sso cia tio n s
rath er

as

fo r

than

fo rm ed
w h ich
the

as

th e

new

co n tem p lated
we

T h is

a ll

know,

Banks

is

oaused

have

no

be

e x clu d e d ,

no

m eans

in te re st

th at

atio n

o f

N atio n al

are
be

State
"th e

m aane

be

State

Banks

oause

general

th e

its
fro m

also

cured,
Banks

m em bers

Im portan t

sh o u ld

bo

fro m

b e in g

w ith d ra w in g

must,

o f

th e

and

th ey

Banks

C ongress

fact

fo rm atio n

so

C le a rin g

to d ay,

e x c lu siv e ly

upon

w orst

be

a sso cia tio n ;

fo r

n ot,

at

or

e n title d

fe a tu re

banks

b efo re

m em b ersh ip

th at
The

when

re ce iv e

once

m ethod

o b je ctio n a b le ,
w ill

th e m se lve s

lo ca te d

to

is

it

responses

the

a sso cia tio n .

th e

few

to

su b je ct,

such

o f

is

fo u n d

th at

th at

d e sira b le

fo rm ed

fa r

e x ist

nouse

th e

as

w e ll

p la s­

any
a

p o in t

and

in ,

o f

from

cannot

th ere

ta x a tio n
as

support

is
and

oth er

de­

and

cooper­

now

organ­

g e n e ra lly.
o f

g re ate st

m ig h t

f la t ,

as

N atio n al

act

co n sid e re d

a ll

in s titu tio n s ,

in clu d e d ,

u tiliz in g

p o ssib le

by

recent

co n sid e re d

is

are

as

fo r

cou n try.

perhaps

charges

fe cts

th e

fa lle n

w h eth er

and

o f

by

in

a sso cia tio n

an

fa r

th e

v o ice

w here

as

d evised

a sso cia tio n s

c h ie fly

Bank,

be

has

o f

N atio n al

ize d ,

sh o u ld

purpose

re q u ire

N atio n al

t ic a lly

m eans

good

cle a rin g
and
to

fu rth e rm o re ,
o ffs e t

th e

as

th e
th e

house

th e

in ten t

g re ate st
fa ilu re

p ro te ctio n

a sso cia tio n s
and

num ber"
o f

affo rd e d

one
th e

as

purpoee
th ey
or

o f

such

sh o u ld

m ore

by

a

law

som e

p ro m in e n t

N atio n al

Banks

and

d is a s te r.

Ae b e fo r e
stated ;
th e p r e s e n t la w i s
i n t h e r i g h t d i r e c t i o n , ho- e v e r ,
and w i t h a fe w m o d i f i c a t i o n s c a n be p u t in g o o d w o r k in g o r d e r ,
an d when
t h o r o u g h l y t r i e d o u t a n d t e s t e d , w i l l no d o u b t p r o v e t o b e a c o m p l e t e
p r e v e n t i v e f o r p a n i c s and g i v e g e n e r a l s a t i s f a c t i o n .
And c e r t a i n l y on a
b e t t e r b a s i s and f a r m ore e f f e c t i v e
fo r th e purpose th an th e s o -c a lle d
" c r e d i t c u r r e n c y " a s p ro p o se d by th e A m erican B a n k e r s ’ A s s n ., w h ich




W U B M I iiii i i

.

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.....

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has

no

s p e c ific

se cu rity

w h ich

w o u ld

cause

out; a

la rg e

part

The

proposed

? O k lah o m a
not

to

o f

is

upon

th e

su b je ct

and

fa ct

he

p la n

th at

to

is

m odest
w o u ld

not

be

in

th in k
In

th at

about

p o in t

and

w e ll

known

cen tral

rate

d ire ctio n

rem ain

o f

in te re st

o n ly,

o u tstan d in g

w ork

out

has^show n

state

not

say

C en tral
and

m ore

does

It

is

^or

us, th a t

o n ly ,

when

once

in d e fin ite ly #

so m eth in g

h is
to

a

very

lik e

th e

gu aran ty

is

p la n

b e lie v e

does

has

a ll

p e rfe c tly

open

w h atever.
he

ap paren t,
He

d o in g

m in d

any

not

id e a .

e v id e n tly

o f

co u ld

fo rm

how ever,

c e rta in ly

In
a

th at

g iv e n

he

cdn

to

area

th e

been

su cce ssfu l.

But

who

bow

fo r

down

and

in d u ce

he

m uch

p r a c tic a lly

reverse

le a st

le s s

on,

and

riv a lry

b an k in g

is

at
a ll

oth ers

it.

to

se ctio n

upon

o f

w o u ld

sim p ly

have

to

o w in g

to

d istan ce

as

th e

th e

m ig h t

take

care

fin a n ce s

cou n try

aw ait,
it

th e

h a lf

sh o u ld

p le a su re
a rriv e

th e

a

o f
be

th e
in

in

th e

n ature
fro m

w here

o f
th at,

w o u ld

d e fin e d
o f

each

sin ce

lo n g

been

and

w ith
and

governm ent.

in

th e ir

th e

needs

d istre ss

And

w ith

w e ll

p a n ics

to

n o th in g

A sid e

con ten ted
our

known

in d ep en d en t
has

due

bank.

m assfcf

dozen

It

fo r

o f

th e

se rio u sly,

la rg e ly

be

la rg e ly

m ore, h ave
o f

one

a ll-s u f f ic ie n t ;

not

cou n try?

them .

to

be

everyth in g

su ita b le
have

o r

su b je ct

very

betw een
not

th is

o f

th is

now

o om in g

w e ll

in

to

d ic ta te s

and

th e

have

is

s p irit

co n sid e rin g

re ly
as

th e

e ffe c t

bank

i l l s ,

to

fo u n d

cen tu ry

an yth in n g

w o u ld

and

a

in d ep en d en t

tow ard s

We

brunch

bank

sm a ll

has

p e o p le ,

w ere

o r

co m p a ra tiv e ly

we

th e

he

Bank

th erefo re

p a rtic u la r

th at

co m m itted

th at

cou n try,

fin a n c ia l




to

purpose.

th e

we

o th ers

th at

is

cen tral

not

lo ca te d ?

w ith

to

q u e stio n

la ve

be
and

he

em in en tly

an tag o n ism

th e

th is

one

w h ich

th e

one

w o u ld

suppose

o f

n o m in al

doubt

the

to

th e ir

how ever,

o o n o .d e d

th at

co u n trie s

o n ly,

ce n tra liz a tio n

o th er,

a

it#

o f

respect

cen tres

no

ca re fu l

d ire ctio n ,

w ith o u t

th at

bank

in

doubt

G u aran ty,

enough

and

tra in in g

e ls e ,

no

w o u ld

very

averse

a ll-p o w e rfu l,
th e

too

answ er

fo re ig n

cen tral

and

gu aran tee#

A ld rich

th ou gh t

it

e la s tic

w o u ld

D e p o sit

M r.

w o u ld

be

it

gu aran ty

Bank

alw ays

it

b e h in d

u p b u ild in g
one

a ll
And

b ig
o th er

i f

fin a n c ia lly

any
it

o f th e bank fo r r e l i e f ,
and th e n
F o r in sta n ce
too l a t e .
KXgX s u p p o s e t h e b a n k

w ere

lo ca te d

b u ild in g
be

to

in

th at

have

te rrito ry

m anagers

trib u ta ry

to

d istan ce ?

1/ro e t

and

burn

i t s e l f

as

favo r

W e ll,
been

a tte m p tin g

it s

th at

it s

Europe.

w o u ld

at

rage

argued

B oston ;

th e

co n tro lle d

have

in

up

in

th at

it

has

happen

we

m ore

to

is

out

to

le s s

Ran

them

up

in

in

what

m anner

P ran ciso o ,

c e rta in ly

fire

been

trie d

and

o f

an

or

n ot,

great

su ccessfu l

set

e s p e c ia lly

th e

know

o r

fe e l

over

sam e

o ccu p a tio n

we

v ie w

it

it

d id .

to

of

but

on

a

a

th is

featu re

success

crow ned
who

sim p ly

m ain

be

heads

w o u ld

th in k

of

sid e

in

p a n ic

w o u ld

The

fou n d

th ere,

th e

co u ld

and

assortm en t

in te re ste d

o f

th e

w ater?
m atter

No

u n w ie ld y,
in &

im p ra ctica l

cou n try

th at

th e
It

o f

th in g

sca rce ly

w ith in

ten d en cies

adopt

ch ild

h is

fo llo w in g

in d u ced
d evo te
good

to

who

le sse n

th e ir

tin e

p ra c tic a l

tro u b le s

o f

b e h in d

of

the

to

th e ir
and

w o rk in g

about

th e

ro ya lty;

seem

fo r

d istan ce s,

A m erican

d e m o cra tic
th at

im p o ssib le

m a g n ifice n t

o n ly
i f

and

p e o p le
th e

have

so

ardor

in

e n e rg ie s
order,

one

th e

and

it

range

th e re fo re ,

of

we

w o u ld
be

th is

fe e lin g
th e

im p ro vin g
w o u ld

th en

soon

and

w ill

M r.

the

present
have

fo u n d

th at

P o w le r

our

and

to

and

co u ld

id e a,

la w

th e

consent

su b je ct

Bank

grow -

g ra ft.

ever

i f

C en tral

th e

be

and

how ever,

so

upon

great

doubt

p o litic s

bank,

u n -A m erican ^

th is

no

cou n try

cen tral

m uch

o f

is

p o s s ib ilit ie s ,

fig h tin g

to

it

w o u ld
o f

uses

it

be

and
put

it

in

fin a n cia l

u s.

Su m m in g u p ,
th erefo re,
in a c t i v e m oney p e r i o d s t h e m em bers o f t h e
v a r i o u s c l e a r i n g h o u s e a s s o c i a t i o n s s h o u l d , o n t h e d e p o s i t ,> f p r o p e r s e ­
c u r i t y , an d u n d e r c a r e f u l r e s t r i c t i o n s , b e a u t h o r iz e d to i s s u * b iV » r in
° f
? uoh

^
* ‘ V ?
^
p

° ;

d e p o s i t o r o t h e r dem ands upon
a s s o c i a t i o n s con not be overco m e, th e n

them .
rem ove

O r,
th e

m emb

f ? V >f * t h e , p i»e 8f n t l a w 804 t h r o u E h t h a t m e a n s s e c u r e t h e c o o p e r N a tio n a l Banks a t c le a r in g house p o in ts .
T h i s w o u ld p u t an

-s 1 t #
fe a r o f

! ? u ld C0aBe» because th e y
the
d i f f i o u l t y fro m t h a t s o u r c e .

Pn„ * p ^ ° h f 1 A? fial ° 0 n d i t l o n
C o n g re ss to g iv e i t to u s .




Bank

'8 ,11

^ L l ' h ? * p e r i ° d i o a l s u 8P e n e i o n o f c l e a r i n g h o u s e b a n k s ; a n y
° T ^ded,
a s s e t s arn good—
oan at any t in e r e c e iv e prom pt

w ith o u t

i f th e
State
o b je ctio n -

n o t^ o rth
* *

w o u ld d ie
y
r
t
n
u
omo v e

striv in g
•

fo r?

one
and

o f w h ich — *
e f f i -

a b o r n i n , and t h e
a l o n g s e r e n e l y fro m

I t

is

up
*

to
v

year

to




LIST O ALTERNATES.
F
J . 3 . Forgan, P r e s 't F ir s t N atfl Bank, Chicago, I l l s . ,

or

J# T. T a lb e r t, l3 t V ic e -P r e s't Commercial N a t'l Bank, Chicago* or
Geo. M. R eynolds, P r e s 't C ontinental Hat11 Bank, Chicago.
John B. Ramsay, P r e s ’t N a t'l Mechanics Bank, Baltimore,M d.

Gen. J . *r. ^ h itin g , M obile, A la.
Although Gen. S i t i n g i s th e P resid en t o f the Peoples Bank,
a S tate Bank, he i s the lead in g banker in M obile, and i s b e lie v e d
to oe e x c e p tio n a lly w e ll q u a lifie d a l l around fo r d isc u ssin g and
handling a n a tte r o f t h is k ind .
A. Baldwin, J r . , V.P. New Orleans N ation al Bank, New O rleans, L a., or
C. M F h itn ey , V ic e -P r e s 't W iitney-C entral N at’l Bank, New O rlaans.
.
Bion H. B arn ett, V ic e -P r e s't B a m ettN a tio n a l Bank, J a c k s o n v ille ,F la .
G* Harding, P r e s 't F ir s t N ational 3ank, Birmingham, A la.
A. M. Baldwin, P reset F ir s t N a t'l Bank, Montgomery, A la .

M. F. Backus, P r e s 't S e a ttle N a t'l Bank, S e a t t le , ^ ash 'n .
E. H. 3 a ile y , P r e s 't F ir s t N at’ l Bank, S t. Paul, Minn.

Vn. H. Dunwoody, P r e s t. Northwestern N a t'l Bank, M inneapolis, Minn.
E. C. McDougal, P r e s ’t Bank o f B u ffa lo , B u ffa lo , N. Y.
A. L. Ordean, P r e s 't F ir s t N a t'l 3ank, Duluth, Minn.

#
AMEUK-IBITT.

She a l l o t m e n t f o r r r i n t i n g and B in d in g f o r
h e r e b y m ade a v a i l a b l e

C on gress i s

f o r t h e p r i n t i n g a s p u b l i c d o c u m e n ts o f

s u c h o f t h e p u b l i c a t i o n s o f t h e n a t i o n a l L io n e ta r y C o m m issio n

as

t h e C o m m issio n may d e s i g n a t e *

d o c u m e n ts i s
to

tim e ,

h ere b y a u th o r iz e d to

s u p e r in te n d e n t o f

o rd er r e p r in te d ,

fo r s a le :

B liat t h e a p p r o p r i a t i o n f o r p r i n t i n g an d b i d d i n g

s h a l l b e r e im b u r s e d f o r t h e c o s t o f s u c h r e p r i n t s
m o n ey s r e c e i v e d
s a le




from t im e

s u c h p u b l i c d o c u m e n ts o f t h e n a t i o n a l M o n e ta r y Com­

m i s s i o n a s may b e r e q u i r e d
P r o v id e d ,

And t h e

from t h e

b y t h e s u p e r i n t e n d e n t o f d o c u m e n ts from t h e

o f p u b l i c d o c u m e n ts*




IT.

E.

10 262.

■ Calcine a p p r o p r i a t i o n * t o s u p p l y u r g e n t < i e f i o i e n o i e a
p r i a t i o n s f o r th o f i s c a l
y e a r n in e te e n hundred
an c; f o r o t h e r p u r p o n e s .

A M E N D M E N T
On

page

29,

at

th e

end

of

lin e

in ap p ro ­
and t e n ,

.

10 ,

add

th e

fo llo w in g :

•s i
The

a l lo t len t

fo r

p rin tin g

jL*^

C ongress

in

hereby

nado

and

*
'

a v a ila b le

fo r

the

'*

b in d in g

J

■

fo r

Cl\x

o rin tin g

aa

oub-

A
li e

docum ents

•lo n et h x y

of

suoh

C o /m issio n

su p erin ten d en t
re p rin te d ,
ra tio n a l

fro n

o f

as

tho

the

to

p u b lica tio n s

R e m issio n

docum ents

tin e

M onetary

o f

in

tin e ,

C o m ic cio n

as

be

to

docum ents

re q u ire d

c

: atio n ai

a u th o rise d

p u b lic

nay

th e

d e a l,m a te .

hereby
such

o f

fo r

And

th e

order
of

the

n o le%

/
P ro vid ed ,

That

th e

a p p ro p ria tio n

fo r

p rin tin g

and

b in d in g

^ -1
sh a ll

be

m oneys
s a ls

of

reim b u rsed

ro o eire d
p u b lic

by

fo r
th e

tho

co st

of

such

su p erin ten d en t

dooum en ts.

■
V.

1 1

a

of

re

> rin t«

docum ents

fro m
fro m

the
tho

TRUSTEES
C.F. MICHAELS

JOHN BARNESON
W. A B IS S E L L

WILLIAM L.CCRSTLC . v i c e

r r c s io c n t

J A N E S K.M OFFITT

CUSTAVE BRENNER

JAM ES McNAB. M e t IDCNT

H.D.MORTON

WILLIAM M.BUNKER

VICE PRESIDENT

CHESTER W .BURKS. s e c r e t a r y

• treasui

ORGANIZED

HENRY ROSENFELD

ALBERT E.CASTLE

JA N E S TYSON

STANLEY DOLLAR

WILLIAM MATSON .SECOND

ROLL A V. W ATT

1850

RESOLUTION
ADOPTED BY THE BOARD OP TRUSTEES

‘

AUGUST 1 1 , 1 9 0 9 .
----- o O o - - WHEREAS, t h e N a t i o n a l M o n e ta r y C o m m issio n i s

now en gaged , i n

tiie

s t u d y o f c u r r e n c y p r o b le m s , w i t h t h e p u r p o s e o f p r o p o s in g
r e fo r m

in

t h e m o n e ta r y s y s t e m o f t h e U n i t e d S t a t e s , a n d

h a s b e e n m a k in g i n v e s t i g a t i o n s

in v a r io u s

E u ro p e a n d i n p a r t s o f th e U n it e d S t a t e s
WHEREAS, t h e m e th o d s in v o g u e on t h e P a c i f i c

c o u n tr ie s o f
and

C o a s t and t h e h a b i t s

a n d c u s to m s o f t h e p e o p l e h e r e n a v e d e v e l o p e d a l o n g l i n e s
d iffe r in g ,

i n som e r e s p e c t s ,

o f th e U n ite d S t a t e s ,

fr o m t h o s e

o f o th e r l o c a l i t i e s

now t h e r e f o r e b e i t

RESOLVED, t h a t The Chamber o f Commerce o f San F r a n c i s c o r e s p e c t f u l l y
u rges th e se

c o n d itio n s

upon t h e a t t e n t i o n

o f th e N a t io n a l

M o n e ta r y C o m m issio n and e a r n e s t l y r e q u e s t s t h e H o n o r a b le
M em bers o f s a i d
g a tio n

C o m m issio n t o h o l d s e s s i o n s

o f th e s e c o n d itio n s

w e ll as

in

o th e r

fu r th e r

c itie s

fo r

th e

in v e s ti­

i n t h e C i t y o f San F r a n c i s c o , a s

o f th e P a c if ic

C o a st,

and b e i t

;

RESOLVED, t h a t a C o m m ittee o f t h r e e b e a p p o i n t e d t o b r i n g t h i s m a t t e r




p r o p e r ly b e fo r e

t h e m em bers o f t h e N a t i o n a l M o n eta ry Com­

m is s io n ,

t h a t end t h a t t h e y p u t

an d t o

m u n ic a t io n w i t h t h e r e p r e s e n t a t i v e
a s s o c ia tio n s o f t h is

c ity

to

th e m s e lv e s

in

com­

c o m m e r c ia l and b u s i n e s s

s e c u r e th e

c o -o p e r a tio n

of

<




San Vranolsoo, August 11,

VI

1909

18, the Rational Monetary Commission is now

engaged in the study of ourrenoy problems, with the purpose of
proposing reform in the monetary system of the Uhlted States, end
has been making investigations in various countries of Europe and
in parts of the United States{ end
WHXRB18, the methods in vogue on the Paolflo Coast
and the habits and oustoms

of

the people here have developed along

lines differing, in some respeots, from those of other looalltles
of the United States,
low, therefore, be it
HESOIVBD:

That The MSrohants Association of San

Vrenolsoo respeotfully urges these conditions upon the attention
of the Vatlonal Monetary Commission end earneetly requests the
Honorable Members of said Commission to hold sessions for the
investigation of these oondltlone in the City of Sen Vrenolsoo, as
well as in other oltles of the Paolflo Coast*
And be it farther
BESOLVED:

That a oommlttee of The MSrohants Asso

olatlon of San Vrenolsoo be appointed to bring this matter properly
before the members of the Rational Monetary Commission, and to that end
that they put themselves in eommunloatlon with the representative
oomaeroial end business associations of this oity to scours the co­
operation of the latter*

The Merohants Association of San

President*

ffmcisco

- 1*




A
be<»n

in

waa

o!

su b co m m ittee
se ssio n

fo r

th*.

the

at

o f

th<

the

purpo*e

S a tio n al

He t e l

o f

P I Ajia

arran g in g

t o:Q'.i 3 s i on d u r in g

[© n otary
fo r

fo r

tw o

the

day*,

w ork

th e summer p r i o r

to

I n g o f t h e C o w r ie a lo n w h ic h w i l l t a k e p l a t e
.Anout t h e m iddle: o f O c t o b e r .
s t a t i s t i c s , w h ic h h a v e
P r o f c n .- o r A. ? .
,< r v o f .

It

o f

th e

n e stin g
w enbera

t h e g e n e r a l ~f> t »
in

W a sh in g to n

num ber o f p a p e r s and

p rep a red u n d er th e d i r e c t io n

th a t

t h e m o n e ta r y

th e m

o f

a t th e

oc

to te

o r t * and s t a t i s t i c s w it h

ay ste m * w h ic h a r e u n d e r i n v e r t i r * -

by t n e C o m m issio n w i l l t c

p u b lic a tio n

rfce

have

A n d rew , w e r e s u b m it t e d t o t h e C o m m issio n i n

i » e x p e c te d

r e fe r e n c e tc
tlo n

be*n

A la r g o

C o a ti s a l o n

c o m p le t e d and re a d y
race t i n g .

a * » eom s w

A r h ib c o -v n ittc e w a s A p p o in te d

fa r

t o make a p e r s o n a l n xarain **

c ‘ on in C an ad a o f su c h f e a t u r e o o f th * C a n a d ia n s y s t e m a s
h a v e n e t a lr e a d y b e e n c o v e r e d by t h e i n v e s t i g a t i o n s o f
C o m m is s io n .
ct si m an ,
and

r *

su b com 1 t t e e

The

w ill

c o n s is t

i t o r a B u r r o w s and r . a n i o l ,

rtm

k o n y n iro .

o f

V r o tla n d ,

tfr.

H sp resen t .t i v e

w ill vi « it

su b co m m ittee

th e

Canada

week*

soma

- * ^0 d u r i n p t h e Mont t o f f t p t a b<;r •
Th«

ch airm an

o f

tho

Coatmi > s l o n ,

who

it

to

c a ll

fo r

Europe

fr
y

n -xt

week,

referen ce

w ill
to

the

for

a d d itio n a l

caa<

s

? til

w here

co m p le te

cover

I-

la
o f

co n tin u e

its

statem en ts

a ll

th e

m o tio n s

m on etary

system

in fo rm atio n

the

to

arran gem en ts

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t h e p u r p o s e o f t h e Com i a a l o n

o f th in

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th e

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o f

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made

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»ystem s
Com­

d.

d iffe r e n t

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f

F a lla c ie s

o f F o s t a l S a v in g s B a n k s.

P h i l a n t h r o p i c o r T y r a n n i c a l?
What i s
in

t h e t r u e p r o v i n c e o f g o v e r n m e n t, b u t " to p r o t e c t i t s

life ,

fo r

U n d o u b te d ly t h e l a t t e r .

lib e r ty

an d t h e p u r s u i t o f h a p p i n e s s " .

Our f o r e f a t h e r s f o u g h t

fr e e d o m fr o m g o v e r n m e n t a l t y r a n n y an d Thomas J e f f e r s o n who p e n n e d

our c o n s t i t u t i o n

w ,s l e d t o e x c l a i m

m erce a n d n a v i g a t i o n -

" A g r ic u ltu r e , m a n u fa c tu r e s,

th e fo u r p i l l a r s

m o st t h r i v i n g w hen l e f t m o st t r e e

o f our p r o s p e r it y -

th e door o f ty r a n n y b y e n t e r in g i n t o
c itiz e n s

in

o n e o f th e g r e a t

to g e th e r b e fo r e

t a l S a v in s B an k s f o r
b r ie fly ,

w i t h a v ie w

to op en

L et u s r e a ­

t a k in g a f i n a l p lu n g e i n t o p a t e r n a lis m ,

W ith a l l d u e d e f e r e n c e t o

th is

own w o r th y

aven u es o f n a tio n b u ild in g ?

o f w h ic h i n t h e l o n g r u n p a l s i e s

Is

tim e ,

c o m p e titio n w ith i t s

com­

are th e

to in d iv id u a l e n te r p r is e " .

l a n d , w h ic h h a s p r o s p e r e d b e y o n d a l l t h e n a t i o n s o f a l l

son

c itiz e n s

th e e f f e c t s

human p r o g r e s s .

th e good i n t e n t

th e U n ite d S t a t e s ,

le t

o f th e

a d v o c a te s o f F os­

us d ia g n o s e th e c a s e v e r y

to b r in g in g th e la r g e s t p o s s ib le p r o s p e r it y to

th e

n a tio n .
The p r i n c i p a l c l a i m s f o r
1st

I t w i l l b r i n g fro m h i d i n g b y d i s t r u s t f u l p e o p l e and b y f o r e i g n e r s

la r g e ly ,
2nd

t h e la w a r e t h a t , .

su n s o f

lo n e y now h o a r d e d .

I t w i l l p r o v id e
As t o t h e

fir s t

a s a fe p la c e
p r o p o s itio n ,

a re d i s t r u s t f u l p e o p le in

out o f th e ir

in d e m n ity p a id t o

is

s m a ll d e p o s i t o r ' s fu n d s .

t h e c o n c l u s i o n w a r r a n te d ?

T here

e v e r y la n d t h a t w i l l h o a r d m o n ey , n o m a t t e r

how g o o d t h e b a n k s o r e v e n t h e
p e o p le p u l l i n g

fo r th e

G overn m en t may b e .

s to c k in g s th e

Germany a f t e r

W it n e s s t h e F r e n c h

one th o u sa n d m i l l io n d o l la r s

t h e F r a n c o - P r u s s i a n W ar,

and t o - d a y

th o s e s m e p e o p le a r e th e g r e a t e s t h o a r d e r s o f c a s h o f any p r o g r e s s iv e
n a t i o n on e a r t h , n o t w i t h s t a n d i n g F r a n c e h a s a P o s t a l S v i n g s B a n k . The
am ount o f h o a r d e d m on ey i s

a p p r o x im a te ly so s m a ll in

th e U n ite d S t a t e s

w ith i t s

2 5 ,0 0 0 b a n k s s c a t t e r e d i n e v e r y h a m le t h a v i n g a n y s u r p l u s c a s h ,

th a t

su b ject i s

th e

a lm o s t u n w o r th y o f n o t i c e .

i n g s b a n k s a r e p u s h i n g t n e i r w ay i n t o
a ll

to

sa v e to th e

seco n d p r o p o s itio n

s i a l l s a v in g s s h o u ld b e p r o v id e d ,

t h e s e r i o u s en d o f i t




e v e r y home i n

th e

s t e e l sav­

la n d , i n s p i r i n g

en d t h a t "Mony a p i c k l e make a j r u c k l e " .

The a n s w e r t o t h e
th e

The l i t t l e

is ,

a ll

th a t a s a f e p la c e to
c a n s a y Amen! t o

d e p o s it

t h a t . B ut

- 2

Why s h o u ld t h e U n it o d S t a t e s
p e t i t i o n w ith i t s
Is it
th a t in

-

G overn m en t e n t e r i n t o

a w h o le s a le co n -

own c i t i z e n s who a r e s t r u g g l i n g t o u p b u i ld t h e n a t i o n ?

not a fa c t

th a t i s

p ro v ed beyon d d is p u te by th e

a l l New E n g la n d , New Y ork and o t h e r o l d s t a t e s ,

p l u s c a p i t a l h a s a c c u m u la t e d ; w h e r e s a v i n g s b a n k s h a v e

s ta tis tic s ,

w here la r g e

su r­

lo r e l a r g e l y

d e­

v e l o p e d an d w h ere g o o d la w s r e g u l a t i n g t h e b u s i n e s s h a v e b e e n e n a c t e d ,
th a t

th e

lo s s e s

to

s a v in g s bank d e p o s it o r s h ave b een c o m p a r a tiv e ly i n ­

f i n i t e s i m a l s i n c e t h o s e g o o d la w s h a v e fo u n d t h e i r way i n t o
V/h'Te do m a t e r i a l l o s s e s o c c u r ?
in g in

th is

m i o th e r n a tio n s ;

th e S ta tu te s ?

I h a v e s t u d i e d t h e H i s t o r y o f Bank­

h ave had n e a r ly h a l f a c e n tu r y o f p r a c ­

t i c a l e x p e r i e n c e and I c h a l l e n g e a n y man t o d i s p r o v e t h e f a c t
s t a t e s h a v in g g o o d la w s r e g u l a t i n g t h e b a n n in g b u s i n e s s ,
d e p o s ito r s are in f in it e s im a l;
la w s an d s t i l l

g r e a te r in

th e y a re

sta te s

If

in

fo u r y e a r s

th is i s

e n te r in to
r e g u l'te

tr u e ,

in

lo s s e s

to

s t a t e s h a v in g la x

h a v in g n o la w s a t a l l .

c e p t i o n s do n o t d i s p r o v e t h e r u l e .
p o s ito r

la r g e r in

th e

th a t,

O c c a s io n a l ex ­

N ot a d o l l a r h a s b e e n l o s t

to

a d e­

s i n c e W i s c o n s i n p a s s e d h e r g o o d b a n n in g la w .
w hat i s

t h e p r o v i n c e o f g o v e r m e n t?

a t y r a n n ic a l c o m p e t it io n w ith i t s

t h e b a n k in g l a w s , t h a t l o s s e s

It is

not, t o

own c i t i z e n s , b u t t o

so

to d e p o s ito r s w i l l b e red u ced to

a minimum c o n s i s t e n t w i t h human i m p e r f e c t i o n s .
F u r th e r ,

le t

u s a w a it t h e r e p o r t o f t h e C o n g r e s s i o n a l M o n e ta r y Com­

m i s s i o n w h ic h i s

e v i d e n t l y m a k in g a p r o f o u n d s t u d y o f m o n e ta r y s c i e n c e ,

w i t h t h e h o p e t h a t a so u n d rem ed y f o r
w i t h th e ir

tr a in

of e v ils ,

th e p r e v e n tio n o f c - s h

may b e p r o v i d e d .

s u s p e n s io n s

A ls o w i t h t h e h o p e t h a t

t h i s r e p o r t may r i v a l t h e c e l e b r a t e d B u l l i o n Re; o r t o f 1 8 1 0 t o

t h e H ou se

o f Commons.
I s n o t t h i s r e a s o n in g p h ilo s o p h ic a l?
Ah! b u t t h e r e i n

s till

a n o t h e r m ore s e r i o u s p h a s e o f t h i s

The E u r o p e a n n a t i o n s

h iv e b o n d e d d e b t s f o r

d o lla r s .

t h e r e t a k i n g P o s t a l s a v i n g s fro m i t s

The n a t i o n

p la c e s th e
lin g

fo r

.’u n d s i n t o

th e ' d o .

t h a t g o v e r n m e n t's b o n d s ,

What i s p r o p o s e d h e r e ?

ed d eb t o f about n in e h undred m i l l i o n
a b so rb ed as s e c u r it y
hil.




d o lla r s or m ore.

It is

p e o p le ,

at once

T he u n i t e d s t a t e s h«n a b on d ­

d o lla r s .

n o t im p r o b a b le -

th o u sa n d m i l l i o n

th u s p r e v e n t in g any w ran g­

As t h e b u l k o f i t , i s

fo r n a t io n a l bank c i r c u l a t i o n ,

S u p p o s e - w h ic h i s

a th o u sa n d m i l l i o n

ov er s ix te e n

su b je c t.

its

now

bonds can n ot be

t h e p o s t a l d e p o s i t s r a n up t o
p rop osed to c o l l e c t

th is v a st

sum

fr c m t h e r u r a l d i s t r i c t s ,

as w e ll

th e p r o c e e d s in n a t io n a l b sn h s in
to

th e r u r a l d i s t r i c t s ,
V/ho d a r e s d e n y t h a t

as

in c i t i e s ,

th e c e n t e r s ,

as w e ll as th e g rea t
t h e s c r a m b le f o r

an d t h e n r e - d e p o s i t

t h u s d o ln

s e r io u s in ju r y

c e n ters.

th e p ie w i l l b e th e a b s o r b in g

an d s o u l a n n o y in g t o p i c w h ic h h o n e s t c o n g r e s s m a n an d g o v e r n m e n t o f f i c i a l s
w i l l g la d ly
V/ho

a v o id , b u t th e p o l i t i c a l g r a f t e r w i l l r e v e l in ?

a r e s deny th a t f a v o r it is m

h o l d sw ay w i t h

w i l l cre-'gp i n

and p o l i t i c a l p u l l w i l l

a sw ag o f a t h o u s a n d m i l l i o n o f d o l l a r s o r

o r e o f th e

d e a r p e o p l e s 1 m oney f o r i n v e s t m e n t i n v a r i o u s h i n d s o f s e c u r i t i e s

as

p rop osed ?
Who d a r e s d e n y t h a t

o rd er p a n ic c o n d it io n s ,

many b a n h s f o r d e p o s i t i n

c a s h w i l l b e draw n fr o m

t h e P o s t \1 S a v i n g s B an h ,

and s u c h c a s h b e c a u s e

o f s lo w r e d t a p e g o v e r n m e n t m o v e m e n ts w i l l n o t g e t b a c h i n t o
banhs o f d e p o s it

and i n t o

r e l i e f may b e h a d ,

t h e fe w

t h e c h a n n e l s o f com m erce t h a t i m p e r a t i v e q u i c h

t h e r e f o r e p a n i c c o n d i t i o n s w o u ld b e a g g r a v a t e d i n ­

s t e a d o f a m e lio r a te d ?
Who d a r e s c l a i m

•

th a t

a p a r a l l e l c a s e c n be fo u n d in

any p r o g r e s s ­

iv e n a tio n ?
The w a i l o f t h e u n e m p lo y e d o f L o n d o n ,
e m p lo y m e n t, & c . ,

to q u it e

m uch p a t e r n a l i s t i c ,
many f i e l d s ;

a

m ate rial

u n p r o fita b le

r e s u lt in g in

o f w h ic h n e a r l y a l l E u r o p e i s
a w a it* u s i f

in

its

crtu«cd

ty

c o m p e titio n w ith i t s

a d is e a s e ,

t a x e s , w an t o f

d it w g o th o r t o o
own c i t i z e n s

in

an d w i t h i t

fr o m t h e b l i g h t i n g e f f e c t s

now s u f f e r i n g ,

we v o l u n t e e r t o

w h ic h o u r f o r e f a t h e r s

e x ten t

e x c e s s iv e

c r u s h in g in d iv id u a l i n i t i a t i v e

a d d i t i o n a l em p lo y m e n t o f l a b o r ;

fa te

th e

s h o u l d w arn u s t h a t a l i h e

d e s t r o y o u r i n d i v i d u a l fr e e d o m f o r

f o u g h t • an d a g a i n s u b s t i t u t e

g o v e r n m e n ta l ty r a n n y

ste a d .

I am no p e s s i m i s t , b u t b e l i e v e it , a p a t r i o t i c d u t y t o s o u n d a w arn ­
in g

a g a in s t e n a c tin g in t o

e n t e r i n g w ed g e t o

la w a f a l l a c y

t h e p a r a l y z i n g i n f l u e n c e s o f p ‘t e r n a l i s m ,

g u i s e o f p h i l a n t h r o p y , w hen a l l
can p r o g r e s s .

t h a t u n d o u b t e d ly w o u ld be an

h is t o r y t o a d ie s p a te r n a lis m

under th e
d e a d e n s Lu­

Hay o u r S ta te s m e n n o t b e n i l e d b y t/no a l l u r i n g f a l l a c y ,

b u t n a y t h e t r u t h f u l m axim u t t o r c d b y Thom as J e f f e r s o n p r e v a i l ,
e n d t h a t our w o n d e r f u l p r o g r e s s b o n o t d im m ed .
V/names h a , W i s c o n s i n .




F ebruary 19,

1909*

Anurew J .

F ra m e.

to th e

f

.i r <

PU3LI0ATI0N3 OP TIL'. NATIONAL I.DNKTARr C M 133ION
O '.

€ ,/ V $ Q
/

*****************

I - nioOUJu/JiLOu:

—" ( j ^ ln to rv iew s on the Banking and Currency Systems o f England, Prqnoj)^ Geimany and.
yj j
^
S w itzerla n d .
(434 pages - ]£) // * 7 *£*- * < & d
•*
/S ^ £ ) v 1 f t io C redit o f ^Nations, by F rancis W. H ir s t.
(23 pages - g a lle y )
_ 4 0 feS rtio len :
D iscount System in Burope, by Paul M. Warburg.
(43 pages - CJ
_
____yjJ^Sanlc A cceptances, by Lawronco Merton Jacobs.
(18 pages - CJ >

/

i

II - UNITiR) STATUS
■ " ^ t ^ a t i s t i o s fo r tha U nited S t a t e s , 1067 - 1909,
(1-232A - R)
/ v O - ^ e o o t o f i’ta to Banking Laws, by 3 . A, Y/olldon.
(G a lley , _ _ pafjos, jt)
Q^-She Use o f C redit Instrum ents in Payments in tho United S t a t e s , by
,
David K inloy.
(62 pag ©3 - g a lle y )
F ir s t Bank o f tho United S t a t e s , by J . T. Holdsworth.
(146 pages - H)
H p ^ o t o r y o f tho N ation al Bank Currency, by Alosnnder Dana IToyes.
(20 pages - C.)
The S a fety Fund Banking System in Nov; Yoik S ta te from 1829 - 1866, by
H. IS. Jhaddock.
(170 pages - j£)
I I I - CANADA
o H isto ry o f 3an3cin{j in Canada, by R o o liff Horton 3reckenrld&o»
(310 pages - C)
IV - MIGRANT

t i s t i o s fo r Great B r ita in , 1867-1908, prepared by S ir R. II. I n g lis
P a lg ra v e, F .R .S ., and "The Hoonorniot".
(35 pages - ffo llo v )
X 0 ; S t a t i s t i c s o f the Bank o f England, prepared by S ir R. H. I n g li 3 P algravo,
F .R .S .

(o vw ^ G & o p agee*.***.•&)---

(& \
j~

W

E n glish Bonking System , by H artley 771the r s .
(150 pages - £ ) ?
^jL^ildndon Bankers* C lea rin g House, by R. M. H olland.
(11 pages - g a l l e y )
V - FRAIIO?.

vJ^ fit^ volu tion o f C redit and Banks in France, from the founding o f th e Bank o f France
u n t il th e p resen t tim e , by Andre L ie s s e .
(271 pages - CJ
* Qk * io Bank o f Franco in i t s r e la t io n s to N ation al and In tern a tio n a l C re d it, by
T.taurice P atron.
( I iTJ pagos - R)
French S t a t i s t i c s , fu rn ish ed by tho C redit L yonnais.
(26 pagos - G a lle y )
H isto ry and Methods o f tho P aris Bourse, by N. V id a l. (65 pages - Cal l e y )
"ronch Savings and t h e ir In flu en ce upon th e Bank o f France and upon French
Banks, by A lfred Keymarok.
[ j'f p a g es, £ )

p

W
r r

,

v L r „ m

s m

t

Tho N ational Bonk o f Belgium , by Charles A. Conont.
-

(238 pages - C.)

v i i - sm m rt

^ ^ ^ t a t i s t i c o fo r Coimany, 1870 - 1908, prepared by Dr. 3 . B reslau or.
?

. .
456 pflgna r P lOT)rftl
{ > **$■
,
,
a Tno Croat German Banks and t h e ir GOnconttaticfo in oonnootion w ith the economic

«

Development o f Cermany, by Dr. J . R io sse r .
(68 pagos - G a lle y )
Roiohsbank, 1876-1900. ( J u b ila u ra ssch rift)
(355 pagos - &(?)
^^tfoxman Im perial Banking Laws, od itod by Dr. R. ICooh.
(65 pagos - Cal l e y )
**^"’tiBOQllanoou3 A r t ic le s on Gorman Banldng. (Covering the org a n iza tio n o f c r e d it ,
d irecto rs* f e e s , tho land mortgage a s s o c ia t io n s , th e savings banks.
^
the co-operafcivo s o c i e t i o s , e t c . )
(9 5 r
av;G5 ~ Gal l owVr +y < %* L " **'•’ /
• ■
y v V / t r n Rei Renov/al o f Roiohsbank C harter. (In clu d in g a r t i c l e s covering "fchb roiniewal
o f th e ch a rter and d isc u ssio n s o f t h is su b ject in bankers* conventions
and elseutfiore, w ith a d ra ft o f tho b i l l )
(82 pages - G a llo y )
!he Gorman Bank Inquiry o f 1908: Stenographic R eports.
(1140 pages - £ )
e je c te d Documents on Bourse L o g isla ta r o .
(33 pagos - ( f o lle y )
(bvelopment o f th e Goman Banking System, by Robert Franz.
( I l l pages - £ )

V



I

r- *
- z -

VIIX - 5 <agzr.3L.ua)
he Sw iss Banking Law, by Dr. J’Aliua Laadmann.
g

tfhe
'h < (p i




(238 pages - C.)

- --3SXI00

Banking System in M ozlco, by Charles A. Jonant.

(68 pages ■ g a l l e y )

Y JPJ 1JJ*,

V,

KXHEOTS II? PRIHI AT QQTdSWZIZC PIUKTIIIO OFPIOK
************

1«

L is t o f oonferonooa l a London, a r is and B e r lin , and a l l papers and s t a t i s t i c s to
be prepared f o r th e Commission, oorreoted up to March 1 6 , 1909.

2*

In terv iew s on th e Banking and Currency Systems o f Mngland, France, Germany and
S w ltso rla n d .
J . 60401, 434 p a g es.
'

3.

The C red it o f n a t io n s , by Franolo 7.'. H ir s t.

4.

The D isoount System in Muropo, by Paul

5.

Bonk Aoooptanooo, by Lawrenoo .Icrton Jaoobo.

J . 05518,

10 p a g es,

.

S t a t i s t i c s fo r th e United S t a t o s , 1067-1909.

J . 72138,

1 - 232 A ,

6

J . 82300,

arb arg.

1 DS - 23 DS.

J.85520 ,

43 p a g es.

7.

D ig est o f S ta te Baiildng Laws, by S . A. ’ /e lld o n ,
.

0.

The Use o f C redit Instrum ents in Payments In th e U nited S t a t e s , by David K in lo v .
J .7 0 7 1 ,
1 PP - 62 PP.

9.

The Pi ra t Bank o f the U nited s t a t o 3 , by

J . 72800,

T. Holdsworth.

J .7 0 6 9 , 146 pogoa.

10.

H isto ry o f the n a tio n a l Bank Currency, by Alexander Dam lio y es.
J.3701C , 20 p a g es,

11.

The Safoty-Pund Banking System in New York S ta te from 1829-1866, by iUS.Chaddoofc.
J .7 2 2 1 , 170 p eg o s.

12.

The H isto ry o f Banking in Canada, by K o e liff Morton Brooloonridge.
310 p a g es.

13.

i t a t i s t i o s f o r Croat B r ita in , 1367-1908, proi>ared by S ir H.U.I n fills P algravo,
P . 2 . 5 . , and ’"The Moonomist".
J .7 2 1 3 6 , 1 Q - 35 CC>
C

14.

St a t l o t i os o f the Bank o f .'.ngltuid, prepared by S i r P .H .In g lls P algravo, P.H .S.
J . 86496, 1 -

16.

Tho M nglish Banking System , by H artley V/ithare.

16.

London Bankers’ C learin g House, by

17.

e v o lu tio n o f C redit and Bonks in Franco, from tho founding o f tho iBank o f
u n t i l tho p rese n t t i n o , by Andre I,lo ss© . J .1 9 7 1 , 271 pogos.

18.

The Borer o f France in i t s r e la t io n s t o n a tio n a l and In tern a tio n a l C r e d it, by
Mourioo P atron.
J . 03704,

19.

Fronoh S t a t i s t i o s , fiti-nlshed by tho C redit L yonnais.

20.

Tho H isto ry and Methods o f tho P aris Bourso, by E. V id a l.




J . 76651,

U, H olland.

J .8 7 5 5 ,

J ,0 7 4 0 0 ,

150 p a g es.
1 UK - 11 HK.

J.G 3701,

1 IK - 26 IK.

J . 90312, 1 PV - 65 PV.

21 •

F r e n c h S a v i n g s and t h e i r I n f l u e n c e upon t h e Bank o f F r a n c o and upon F r e n c h B a n k s ,
b y A l f r e d ReymarCk.

J.8 235,

22#

The N a t i o n a l Bank o f B e lgiu m ,

23*

Statistics
1

by C h arles A.

f o r Germany, 1 8 7 0 - 1 9 0 8 ,

OR -

Conant.

p r e p a r e d b y Dr#

J . 85519,
B.

238

B reslau er.

pages*

J.7 2138 ,

56 CR.

24#

Th e G r e a t German B a n k s a n d t h e i r C o n c e n t r a t i o n i n c o n n e c t i o n w i t h t h e E c o n o m i c
D e v e l o p m e n t o f G e r m a n y , b y Dr# J * R i e s s e r .
J . 90311,
1 GT - 68 G T .

25.

The R e i o h s b a n k ,

1876-1900.

26.

Gorman I m p e r i a l

Banking L a w s ,

27.

M iscellan eou s A r t i c l e s

28.

In Re:

29.

Th e German B a n k I n q u i r y o f 1 9 0 8 :

30.

Selected

ed ited by D r.

o n Ge r m a n B a n k i n g .

Renewal o f R e ich sb a n k C h a r t e r .

D r.

B.

B reslau er.

Development

o f the

32.

The S w i s s

33.

The B a n k in g S y s t e m

J.3 7 16 ,

1

by D r.

in M exico,

Ju liu s

Koch.

J.7 72 6 7,

Sten ograph ic

FS -

German B a n k i n g S y s t e m ,

Banking Law ,

R.

J.8 230 2,

J . 83703,

Do oum en ts on B o u r s e L e g i s l a t i o n

31.




( Ju b ilau rn 3s o h r i f t }

355 pages.

J.8 370 2,
1

DH -

1 AE -

R eports.

FL -

65 FL.

1140

1

pages.

9 3 DR .

82 AE.
J . 83713,

and O r g a n i s a t i o n

i n Germany, b y

33 FS.
b y Robert F r a n s .

Landmann.

by C h arles A.

J.8 370 0 ,

Conant.

J . 772 71,1 1 1

pages.

238 pages.

J.8 6 4 0 ,

1

3V -

68

BY

t
i

i

hi

LIST /O P

I IN VITATIO NS

FOR

SENATOR

ALDRICH

TO

D ELIV ER

ADDRESSES.

COLORADO:
C o lo rad o

S p r i n g s rw

Prom W in .P .S lo cu m , P r e s i d e n t ,
C o lle g e ,
to
"W in t e r 's N ig h t

£

'x a t e
D

to

su it

C o lo ra d o
C lu b ."

Sen ator.

ILLIN O IS:
C h icag o

-

Prom

C o m m ercial

IO W A:
V

i

M o in es

Cedar

-

/

(

L

Nov.

6.

ft
(K -

>T '''
..X

„
'
‘

o

•dm J o h n W u n d e r l i c h , S e c r e t a r y ,
Com m er­
c i a l C lu b . D ate to s u i t S e n a to r.
»\

R ap id s

F a ir fie ld

D ate

i G eorge F . H enry, P re s id e n t,
The G ra n t
ub
(R e p u b lic a n ). D ate to s u i t S e n a to r .

F r

p jr .
i'

i

-

(

■*
Des

C lu b

C .M .J u n k in , P u b l i s h e r "T h e L e d g e r . ", S u g g e s t s
"su m m er s e a s o n " a s g o p d t i m e .

C ' 7" * •
rv't -

**

/ j

t

M ASSACHUSETTS:
B oston

v

-

Prom H . D . H e a t h f i e W ,
Pre
sid e n t,
Bank O f f i c e r s '
A s s o c i a t i o n , B o s t o n . D ate to
su it Sen ator.

|
M ICH IG AN :

v

'

D e tro it

-

P ro m C h a s.B .S a w y e r, S e c r e t a r y ,
D ate to s u i t s e n a t o r .

Board

of

Com m erce.

MINNESOTA:

v

W in o n a

-

Prom H .M .K in n e y ,
C h airm an , E x .C o m .N a t l .A s s n .A g r i c u l t u r a l Im p lem en t & V e h i c l e M a n u f a c t u r e r s .
D ate, O c t.29 ,
at
C h icag o .
v r A 'i

M in n e ap o lis

-

j

Prom M i n n e a p o l i s C l e a r i n g
D a te to
su it sen ato r.

H ouse

f}

' A*

A sso cia tio n .

M ISSO U R I:




Jo p lin

K ansas

-

F ro m C o m m e r c i a l C l u b s o f J o p l i n , Webb C i t y ,
C arth age,
to
s p e a k a t J o p l i n . D a te to s u i t

C ity

-

From

^•'*7 / **-<rU* t
S t.L o u is

-

F .P .N e a l,

H ouse
Prom
can

P re sid e n t,

A sso cia tio n .

D ate

K ansas
to

Hugh K . W ag n er, P r e s i d e n t ,
A u x ilia r y . D ate, Nov. 9.

C ity

su it

and
Sen ator.

" * / 8 \ flA
*
C l e a r‘i n g f , J
,

Senator.

S t.L o u is

o *A

X

£ . I

R e p u b li­

, y r

—2—

S t.L o u is

Prom

C o m m ercial

C lu b .

NEW Y O P K :
New

York

C ity

-

Prom J .E d w a r d
o f Com m erce.

Sim m on s, P r e s i d e n t , C h am b er
D ate, Nov. 1 8 .

New

York

C ity

-

Prom

C lu b .

New

York

C ity

-

Prom N . D . A i l i n g , P r e s i d e n t ,
A m erican In ­
s t i t u t e o f B a n k i n g , New Y o r k C i t y C h a .p t e r .
Any T h u rsd a y e v e n in g a f t e r m id d le o f O ct­
ober.

E co n o m ic

D ate,

N o v .29.

W ISCO N SIN :




M ilw a u k e e

P r o m Wm. G e o .
u fa c tu re rs1

B ruce,
S e cre ta ry,
A s s o c ia t io n . D ate

M e rc h a n ts & M anto
su it se n a to r.

N ovem ber 1 0 ,

The F i r s t B an k o f t h e U n it e d

1909

S ta te s.

The U se o f C r e d i t I n s t r u m e n t s .
S ta tis tic s

fo r

t h e U n it e d

S ta te s.

The S a f e t y - F u n d B a n k in g S y s te m i n New Y o rk S t a t e ,
li s to r y

o f t h e N a t i o n a l B ank C u r r e n c y .

B an k A c c e p t a n c e s .
I n te r v ie w s

on t h e B ank a n d C u r r e n c y S y s t e m s .

The H i s t o r y o f B a n k in g i n

C anada.

The E n g l i s h B a n k in g S y s t e m .
S ta tis tic s

fo r

t h e B ank o f E n g la n d .

The D i s c o u n t S y s te m i n E u r o p e .
The B ank o f F r a n c e .
F r e n c h S a v i n g s and T h e ir I n f l u e n c e u pon t h e B ank o f F r a n c e and
O th e r F r e n c h B a n k s .
E v o lu tio n

o f t h e C r e d i t an d iawdcfcxg

Bank o f F r a n c e .

The S w is s B a n k in g Law.
The N a t i o n a l

Bank o f B e lg iu m .

The R e ic h s b a n k .
M is c e lla n e o u s A r t i c l e s

on German B a n k in g .

German I m p e r i a l B a n k in g L a w s.
S ta tis tic s

f o r G erm any.

D e v e lo p m e n t o f t h e German B a n k in g S y s t e m .
B a n k in g S y stera o f M e x ic o .







IT IN E R A R Y OP PR IV A TE CAR
"C O L U M B IA ."

PR I E A Y ,
Leave

New Y o r k ,

Penn.

R.

R.

N O VEM BER

T rain

No.

SatuehaY ,
A rriv e

C h icag o ,

P.

P t.

W,

<e
S

C.

Leave
A rriv e

C h icag o ,
S t.

L o u is,

A rriv e
Leave

L o u is,

K an sas
K an sas

No.

C.

&

E.

Nov.

I.
8,

T rain
at

S t.

M isso u ri

C ity ,
C ity ,

P ac.

M isso u ri
M isso u ri

No.

Pac.

m.

-

-

-

-

-7 :3 0

a.

m.

7th :
I.

2 1,

T rain

No.

2 1,

-

.................................7 : 3 5

-

-

p .

T ra in
T rain

-

.

NO VEM BER
No.

-

m.

L o u is .)

T rain

P ac.

a.

6t h :

1 3 ,

NO VEM BER

&E.

TU ESD AY,
S t.

NO VEM BER

C.

(M onday,

Leave

2 5 , ______________________7 : 5 5

T rain

SU N D A Y,

5th :

7,
No.

No.

9th :
-

-

7,
10 5 ,

-

-

-

-

-

-

2 :2 0

a.

m.

9 :3 0

-

a.

m.

-10 :2 5

p.

I’

m.

•

\7EDNESDAY, N0VE7.IBER 10th:
Arriva Omaha, Missouri Pac. Train No. 105, - - - - - -

7:00 a. m.

THURSDAY, NOVEMBER 11th:
Leave




Omaha, 111. Central Train No. 4,

7:30 a. m.

-

-

- 1 1 :3

/

*
S




•

'«
-2 -

THURSDAY, NOVEMBER 11th —

continued.

Arriva Minneapolis, M. & St. L. Train No. 1, - - - - - 5:58 p. m.
(Friday, Minneapolis; Saturday, St. Paul.)
SATURDAY, NOVEMBER 13th:
Leave St. Paul, C. M. & St. P. Train No. 10, - - - - -

10:30 p. m.

SUNDAY, NOVEMBER 14th:
Arrive Chicago - - - - - - - - - - - - - - - - - - - -

io a. m.

MONDAY, NOVEMBER 15th:
Leave Chicago, C. M.

&

St. P. Train No. 5, - - - - - - 9:30 a. m.

Arrive Milwaukee - - - - - - - - - - - - - - - - - - -

n

:30

a. m.

TUESDAY, NOVEMBER 16th:
Leave Milwaukee, C. M. & St. P. train No. 56, - - - - -4:50 a. m.
Arrive Chicago, C. M. & St. P. Train No. 56, - - - - - 7:00 a. m.
Leave Chicago, Mich. Central Train No. 10, - - - - - -

io:30 a. m.

A rrive Detroit, Mich. Central train No. 10,/ - - - - -5:55 p. m.
Leave Detroit, Mich. Central Train No. 14,- - - - - -

-10:45 p. m.

WEDNESDAY, NOVEMBER 17th:
A rrive New York, N. Y. Central Train No. 14, - - - - -8:33 p. m.




ITINERARY Of PRIVATE CAR
■COLUMBIA*

TRIDAY NOVEMBER 12th MINNEAPOLIS
On traek No. 6 Chioago Milwaukee & St Paul station until 8 P.M,

SATURDAY NOVEMBER 13th ST PAUL
On traek No. 14 Union station

t

Leave St Paul 11:00 P.M. Chioago Milwaukee

St Paul train Ho, 10

(Thla train la due to leave at 10:30 hut will he held until 11 PM
or if necessary a few minutes later to aocommodate Senator Aldrich)

SUNDAY NOVEMBER 14th
Arrive Milwaukee Chicago Milwaukee & St Paul train No. 10 7:50 AX
(Car to he transfered from Chioago Milwaukee & St Paul to Chioago
ScNorthwester Station)

Leave Milwaukee 9:00 A.M. Chioago

Northwestern train No. 8

Arrive Lake Forest at 10:29 A.M.
Car will he side traoked at Lake forest at a convenient point
and remain till Monday A.M.
Note. Those desiring to spend Sunday in Chioago transfer to farlor
ear on Chioago S c Northwestern train No, 8 before arrival at Lake
forest and reaoh Chioago at 11:15 A.M.
Chioago on Chioago Sc Northwestern
Me Kinsie st) Monday at 8 A.M.
COLUMBIA" at Lake forest.

To rejoin party leave

train 19 ( Station Veils S c
This train will piok up "THE




MONDAY NOVEMBER 15th
Car will be attached to Chicago & Northwestern train 19 leaving
Lake Forat at 8:45 A.M,

.

Arrive Milwaukee at 10:15 A.M.
Leave Milwaukee Chicago & Northwestern Special train about 11 EM

TUESDAY NOVEMBER 16th
Arrive Chicago, Chicago & Northwestern Special train abott 1 A.M.
(Car to be delivered to Michigan Central)
Leave Chicago, Michigan Central train 46-12 at 3:00 A.M.
Arrive Detroit 12;25 noon
Leave Detroit Miohlgan Central train 14 at l» :4t> p.M.
-

11- S 3

WEDNESDAY NOVEMBER 17th
Arrive New York, N e w York Central & Hudson RiWer train#58-5;40 EM
(Car to be transfered from Miohigan Central train 14 to New York
Central train No. 58 at Buffalo.

r

#

TH E

M O N E T A R Y C O M M I S S I O N ' S SPECIAL RE PORT P R O M BANKS.

If b a n k i n g statistics are a true
(>




ditions,
measure

index to economic

'

the pe o p l e of the U n i t e d States are enjoying a g r e a t e r
of p r o s p e r i t y than ever before.

, -

>

fc I

>

i

l— * ‘

Am

a

^

i * f j interesting i w t t . n l iin n ' W'P
ji
ln
j i T*
i
the N a t ional M o n e t a r y Commission,
interest

l^ . . ^ t iM i* * * * * tf* ^ * * m t* M

•

' '* '
■

ij
l ^itiiii

n

iij

docxuneny in question con­

The

tains a © m p i l a t i o n of the special repo r t s
'

fm

' '

is set forth d&ta v o f the greatest

to bank e r s and financiers.
, ....

•

A JU U L u Jy b

•"*

of a/ndition

,

J

*

" * ’* * " * X * i^ ^ ^ ^

,U°..t. o w light upon the m o n e t a r y s i t u a t i o n W i i c h were obtained from
hr
the banks

... .

M iP
\

ifi 1 W * c 6 u > w
li

tC

_ _
_

The
j;iifp'awfi»d'><W»'»»n'Wr^«^<rt<Ad^^a^ze ..n i^it| e s ij^or
ii i

iq
£

- h iu io ^ A

s' ^ The reports were d e s i g n e d to exhibit the exact condition of
/ t h e banks
28,

a3 shown b y their books at the

1909,

and they present

or

thi3

of b u siness April

under investigat i o n .
...

P r a c t i c a l l y every incorporated b a n k
j.

dose

\

in detail every item of resources and

i.tiRS ..... ..... f*L®nt.to_t h e :. sub^egt
P ert
a reporu

J

-.^i^i.^tlAtj.cal tab-

•

,

in the United States f u r ^ / ,!
,

investigation and r e p o r t s f r o m a larger p e r c e n ­

tage of private b a n k i n g concerns than ever before made public were
-- »n.

o

i

p l a c e d at t i disposal
e

O w i n g to tiie difference

of the Commission.

in the laws of the several

states in/

form a t i o n relating to banks

operating outside of the n a tional sys­

tem as her e t o f o r e f u r n i s h e d the Compt r o l l e r of the Currency,
state ba n k supervisors,

could not represent the true conditions of

all banks for any stated date,
and of great diversity

it has b e e n p o s s i b l e

Commission,

being ne c e s s a r ily of varying dates

in detailand form of reports.

F o r the first time
tes

in the h i s t o r y o f b a n k i n g in the United Sta­
as a result

of this inquiry made by the

to p r e s e n t data u n i f o r m in chareter and date from all

institutions engaged

in b a n k i n g throughout

tht country

v The c o m pilation thus comprising the most
hensive

by

complete and c o m p r e ­

information relating to banks o f the United States ever yet

\

printed.
The banks repcr ting f o r this invest igati on include,

6,893 natio-

%

n a l » 11,319 state;




1,703 mu t u a l

and stock savings;

1,49? private;

_ 9_

and 1,079 loan

and trust companies

,

™

The. r e s o u r c e 3
r

4

of/.these banks <**• a p p r o x i m a t e l y 21.1 b i l l i o n
*

a,
/ iJU L .r v 'r ''*

doll a r s .

A brief analysis of t h e resources
l oa n s

cf 11,373 m i l l i o n

millions;

investmeits in bonds

due f r o m banks 2,562 millions;

809 m i l l i o n s
dollars;

dollars;

and l i a b i l i t i e s

cash on hand,

shows
etc.,

4,614

including

in gold coin a nd certificates amounts to 1,452 m i l l i o n

other resources ip94 millions;

surplus and profits 1,835 millions;
deposits 14,106 m i l l i o n s

capital 1,800 millions;

due to banks 2,484 millions;

(including g overnment deposits);

other

*

l i a b i l i t i e s 870 millions.
Of the deposits 6,956 m i l l i o n s
mil l i o n s

are savings

625 millions

consist

deposits;

are subject

1,212 m i l l i o n s

4,926

are on time and

of d e m a n d certificates.

F o l l o w i n g the special

report f r o m t h e banks,

inquiry r e l a t i n g to c h a r a c t e r of deposits,
paid etc.,

to check,

was made by the Commission,

a supplement ary

depositors,

interest

to w h i c h 1 8 , 2 h 5 banks

responded.
The total

deposits

in these banks on or about June 30,

w&fruabrfwL 13,iTcj5 m i l l i o n dollars,
tors or deposit accounts,

credited to over 25 m i l l i o n

which over 8,600,000 were depositors
average rate

deposi

ranging fr o m one dollar upward.

N e a r l y 15 m i l l i o n deposi t o r s had savings or time accounts,

The

1909,

of

in savings banks.

of interest paid on savings accounts b y the

is 3.55^ and 3.1 O i on other interest bearing accounts ;
f

banks

over 40)o of the banks p a y no interest
5 thousand banks p a ^ interest

on ordinary deposits;

on a deposit

of 25 dollars

over

or le ss

and about 12 h undred on sums ranging from 25 dollars up to 500 dol­
lars .
While the n u m b e r of dep o s i t o r s may a ppear to be u n u s u a l l y large
it must

be borne

in mind that doubtless

in many

instances the

individual m ay "nave a checking a n d a savings deposit
same or different,
the bank




institutions,

being t r e a t e d in

as two or more depositors.

account

same
in the

the report f r o m

Such duplication,

however,

-3 -

may be o f f s e t to a g r e a t e x t e n t by t h e number o f d e p o s i t o r s in banks
from which r e t u r n s were n o t r e c e i v e d by t h e Commission.
The nu m b e r of b a n k s has m a r e than doubled since 19 0 0 and

t h e C o m m is si o n 's r e p o r t includes 1,145 m o r e than r e p o r t e d to the
C o m p t r o l l e r i n 1908.
R e s o u r c e s show an increase of about 8/ over 1908; a n d 95/ over
t h e amount r e p o r t e d i n 1900; l o a n s have increased 1 0 0 / in nine y e a r s
while
more

investments have

i n c r e a s e d 92/;

than 75/ since 1900;

capital

stock has

increased by

individual deposits by 93/ and total

d e p o s i t s b y 94 J *
o
D u r i n g the

current y e a r l o a n s have

increased n e a r l y 9/oJ

and deposits over 9-1/2/ .
i n v e s t m e n t s in bonds etc., about 3-3/4/




.

p

B A IIK

to hju^Jktf
uXU

OF THE UNI T E E E T / T T S .

R E S C U E n E !?

*,

a4 w
> JU«

*/

l l ’-I t U

.

fM A y /

I\ n^Lt-iXr, t-J \L-,

i r *<w i. -J m J < f 4 w X *
r
*
v
1 ? g n " ' ft * ? *i j ftU ,.fi.fL-G Q Tnp 1 l P . ^ ^ y - ' 4 + ^ ' « H 4 !' i ' O ^ F ' * vo r n r t ’ T r E '^ o m m k s i o n
4<&&^»£&&feexa.»o f i . ^ p x i 1
[*
1 ig 11 f yf’gi? * d ' 21!"f g y t ff’w ** ’« >e1 V 1
w p e * i #fr r T C T f ( f / W
W f
fcr */tt *»
■w
L** L

1i
^

r Hwi/-phc rive rare* p e r c a M t a
>'Are

I p $ ‘ 3 7 «2 4 .
°
have

Geographically

nk re s o u r c e n

s t a t e d t h e b inks of t h e " la n te r n ° t a t e s

i ta ^ e s o u r c e o o f $ 4 £ 0 . 1 P ; p anics o f t h e V.'ectcrr. " t a t e e

a re

wi t h $1 ,'l.

those

of 'lew Lrigland,

I w i t h $433*6(1);
k

resqurcen of the brinks of the Pacific States

in H a
^

.

jy**^

* ?4 7«77;i M i d d l e ’ estern "tate’ $3''•0.64; Southern r
s
't'iteo $73 .39.
^

^

"he

*\»

state of New York has the

la pest p e r - c a p i t a ^ | bank resources,
/

*

w i t h $676.07;

Massachueette

ring second w i t h $ r
"J7 •< 5 • Nevada
’

✓

w i t h $ r 12.7?;
$ 4 5 7 * j 2.

third

*

California,

fourth w i t h $4?6.70;

Rhode Island,

In the Southern °tates, V'est V i r g i n i a

fifth

is first w i t h $112,66

y

bank resources;

Louisiana,

second w i t h $96.

✓*

2; Tex is third wi t h

y/

• r 0 . 6 r ; V i r ginia fourth, w i t h $°8.6l.
$

In the V i d d l e Ve stern H a t e s
\s

y

TllinoH

ir first with ?'40.39; M i s s o u r i

second,

V
'

Iowa third, w i t h $234.7°;

w i t h $ 2 1 5 .5 0 ;
✓

Ohio

fourth,

w i t h $ 2 0 ' . 66.

In the W e s t e r n
i/

y

states Colorado

is fir~t,

w i t h $ 2 5 0 . 6 r ; ''e' raska second,
'

-ith $234.92;

✓

"on tana and ’
."yoming b e i n g next
respectively*
j? leu
i i
.




-

TUnmni

u.1
.

'

t i l l l' T ?„

ir order,
.
.— 1 r

an

r^-'

.

-iu.i...4 y)

‘
Srrtrr-

j

•, . . . . ♦. c

‘
CAPITAL STOCK OF NATIONAL AND OTHER RANKS
A consolidation of the^reports obtftinecL^Tiowsfthat the aggregate
amount o! the* capital stock of the hanks of fire United States including
island possessions is $ , 0 , 3 , 6 ,
1800638
jjwivny© o almut 2 pec cent
f
1

l r th© ycar
o

y

*

w i t h $207.72 ar.c $207.26

*uul, uvex.7a par aent ahovu the imimmt

r p r e *m 4rmf*
eotd

The amount invested in capital of hanks located in tlie
Eastern States is $581,370,131; in the Middle Western States,
$0,
5 9 622,221; in the Southern States, $
297,137,727; in the Pacific
States, $149,2 9 6 1 in the New England States, $138,499,518; in
7,0;
the Western States, $ 1 ,
1 8 075,127; and in the island possessions,
$ , 5 , 4 . New Y ork has a larger amount than any other State
60203
, invested in bank capital, over $ 6 ,
2 3 000,000; Pennsylvania being
' n vxt with $ 2 , 0 , 0 , Illinois third with $ 2 , 0 , 0 , and Ohio
290000
120000
fourth with $ 0 , 0 , 0 . In the New England States Massachu­
110000
setts is lirst with $ 2 0 0 0 0 Connecticut second with $ 5 0 0 0 0
7,0,0,
2,0,0,
and Rhode Island third with $ 4 0 0 0 0
1 , 0 , 0 . In the Southern States
Pexas is first with $ 7 0 0 0 0 Kentucky second with $ 6 0 0 0 0
5,0,0,
3,0,0,
Georgia third with $ 1 0 0 0 0
3 , 0 , 0 . O f the Middle Western States,
Illinois is first with $ 2 , 0 , 0 , Ohio second with $ 0 , 0 , 0 ,
120000
110000
Missouri third with $ 9 0 0 0 0
7 , 0 , 0 . O f the Western States Kansas is
first with $ 6 0 0 0 0 Nebraska second with $ 5 0 0 0 0 Oklahoma
2,0,0,
2,0,0,
third with $ 9 0 0 0 0
1 , 0 , 0 . O f the Pacific States California is first with
$ 6 0 0 0 0 Washington second with $ 0 0 0 0 0 Oregon third with
9,0,0,
2,0,0,
$ 1 0 0 0 0 In the island possessions $3,000,000 is invested in the
1,0,0.
hanks of Hawaii, $ , 5
1 4 4,302 in Porto Rico, ami $
1,532,604 in the
Philippines.

•

9

Q h * * * * * * & + «!>’

J




1 ,5 8
5 9
national state,etc.,
banks.
banks.

Classification,
Loans.........................
l nitod States bonds........ "
All other bonds and securities
<itsh (Including nattonal-bank notes
( apftal stock.......
Surplus and profits
Deposits (individual)..
'
..........
Aggregate resources

Total,
22,491

banks.

• >,9 7 7 S . 3 5 5 1*11.373 2
14 8 .
O 8.
3 .
7
70 2
4.
5 .0
2
804.8 2.950. 8
3 821.0
.
908
2.
55 2
2.
1 452. 0
.
9 1
.4 .0
80 0
0.
1 800.0
.
7 -> 1 1.0 9. 5
9.
3
1 844. 0
.
4 820.0 9.209. 5 1 . 0 5 5
,
4
y.im .u 11.720. 1 21. 3 .

72
1.8

° t i. j -

eludes mortgages owned^

•k ttis s fir s :
..W c ,
bank. m h c r t Z
5
, J t
the aggregate resources of nil reporting banks: over 65 er ™
ml.vulunl deposits; and over 56 per cent of the aggr^ateToan s

cm »r iii. ,«,i, i , I . , , - , ,1;! ; ; , r m

f

'

s
f
Of

il" ™p,t*1*ni 38 i»r
<

ry

5 ,

19 10 ,

1>

An
budget

is

a ffo rd e d

C o m m is s io n
and

in te re s tin g

on

d iv is io n

by

h im

to

In

th e

case

m a k in g
th e

The

in

th e

a u d itin g

and

a t

is

body,

se v e ra l

T reasu ry,

are

a fte r

m e e tin g

o f

w ays

(o r
—




o f

m ean s"

a

o f

to

th e

a

th e y

and

v o te

on

fis o a l

s u b m its
r e v ie w

to
o f

th e

M o n e ta ry
F ran ce,

M an son ,

p erso n al

c h ie f
v is it

c o u n trie s .

th e

m a im e r

are

o f

c o n s id e r e d

W ho h a v e

o f

H o u se

eaoh
yea r
th e
th e

se t

y e a r,
to

fo rth

or

as

th e

in

ch arge

and

Com m ons
s u p p ly

as

so on

in

th e

M r.

o f

so on

th e

as

as

e s t i­
e n s u in g
by

th e

p o s s ib le

are

m oney

M an so n

a fte r

ap p ro val

e s tim a te s

g ra n ts

by

T reasu ry

e x p e n d itu r e

r e v is io n

The

th e

is

fo rw a rd

a fte r
H o u se

it

each

m eet

P a r lia m e n t.

eaoh

sp eeo h

to

e s tim a te s ,

se p a ra te
in

B rita in ,

d e p a rtm e n ts

ch a p te rs),

a

budget
and

o ffic ia ls

r e q u ir e d

p re se n te d

E a r ly
h is

o r

D ecem ber

0.

o f

co u rt

th e

o f

T h ese

In

g iv e n

E n g lis h

E n g la n d ,

E u ro p ean

w h ic h

G reat

y e a r.

o h a p te rs,

is

o f

in

o f

a m o u n ts

v o te s

r e s u lt

th e

n a tio n a l

J .

m eth o d

case

th e

in to

M r.

im p o rta n t

accoun t

th e

m a te s

th e

an

th e

and

th re e

th e

S ta te s ,

by

th e

o ver

a cco u n ts.

th e

fis o a l

co u n try

e s tim a te s ,

p r a o tio a b le ,
o f

th e

by

U n ite d

and

b e g in n in g

th e

th e

w ritte n

o f

s tr u g g le

p u b lic

w as

c h e c k in g

In
th a t

o f

th e

dooum ent

eaoh

le g is la tiv e

m ade

S yste m s

o a p ita ls

o f

rep o rt

on

T reasu ry,

th e

th e

up

a

" F is c a l

G e r m a n y ,"

o f

"b y

s id e lig h t

’J

by

d iv id e d
v o te s

or

ch a p te r.
th e

C h a n o e llo r

H o u se

o f

r e c e ip ts

o f

Com m ons
and

th e
in

Exch equ er

"o o m m ltte e

e x p e n d itu r e s

o f

th e

-2 -

p ast
to

y e a r,

th e

and

g iv e s

e s tim a te d

ip a te d

reven u e

m e n t,

fo r

cu sto m

to

o th e rs

w ith

th e se

d ered

th e

fix

o f

s u p p ly ,"

M a je s ty
s e r v ic e s

in

m on eys

cu rren t
th e

s u p p ly "

th e

are

th e n

r e o e iv e d
H ou se

to

and

m eans

fo r

is




b r ie fly

d u tie s

d e c la r in g
a

change

a p p o in te d

e s tim a te s
s e s s io n
Com m ons
to

n eo essary
e n s u in g
to

th e

co ver
excess
The

re p o rte d
fir s t

to

th e
o f

rep o rt

H o u se,

and

it s e lf

in to

th e

d e n o m in a te d ,

s u p p ly
"th e

th e

fo r

w ays

w ith

regard

th e

a n tic ­

o f

m ade
and

ta x e s

fu tu re
to

re fe rre d

w h ic h
to

p asses
th e

th e

it

any

The

and

it

o f

in

"c o m m itte e

e x p e n d itu r e

o f

a ls o

th e

p assed

e s tim a te s

i f

p assed

an y,
in

o r­

Com m ons

g ra n tin g

e x p e n d itu r e ,

"c o m ­
is

r e s o lu tio n s

s u p p le m e n ta r y

o f

c o m m itte e .

e s tim a te s

are

th e

su b sta n ce

H o u so

th a t

is

a lte r

day;

s ta te ­

m e a n s ,"

b i l l .

th o

to

h is

The

fin a n c e

a

r e s o lu tio n s
th e

has

e x p e d ie n t

R e s o lu tio n s

th e

r a is in g

in

d e fra y

y e a r.

y e a r.

and

p ro p o sed .

d is c u s s e s

tim e

to

and

it
is

o f

p re se n te d
be

re s o lv e

th e

by

th e

th e n

tim e

y e a r,

Exch equ er

"o o m m itte e

e m b o d ie d

fro m

W hen t h e
been

in

yea r

w h ic h

o f

e n s u in g

th e

is

and

p r e c e d in g

o f

th e n

r e q u ir e d

y e a r,

th e

sta te m e n t

sam e.

and

cu rren t

su m s

e x p la n a to r y

is

H ou se

and

th e

to

se v e ra l

th e n
The

o f

e n s u in g

regard

fo r

p assed

a n n u a lly ,

th e

th e

th e

and

C h a n c e llo r

are

s u p p ly "

th a t

d u r in g

th e

th e

r e s o lu tio n s

m itte e

o f

m eet

r e s o lu tio n s

g r a n tin g

gen eral

e x p e n d itu r e

to

A fte r

a

on

H is

se v e ra l
g ra n tin g

fo r
th e

to

th o
g ra n ts

"c o m m itte e

o f

H o u se.
o f

th e

agreed
a

"c o m m itte e
to ,

o f

s u p p ly "

a

day

is

o o m m itte e

"to

c o n s id e r

g ra n te d

o o m m itte e

to
o f

H is
w ays

a p p o in te d

M a je s t y ,"
and

o f
o r,

m e a n s ."

has
fo r
w ays
as

it

-3 -

The
to

th e

tim e

r e s o lu tio n s

to

s u p p ly

tim e

out

g ra n te d

"c o m m itte e
p assed

o f

in to

m a te d

la w

th e

ftw n n g

th e

Im p e ria l
and

r e la tiv e

S e cre ta ry

e x p e n d itu r e s

C h a n c e llo r

to
It

is s u e

th e ir

c a lle d

th e

b u d g e t.

th e

w h o le

th e
th e

G erm an y
ch anges

e m p ir e ,

la r g e

th a t

in

s e r v ic e s

In

G reat

B rita in

so u ro e

fro m

w h ic h

c o lle c tio n s

any

fr a c tio n a l

w h o le
p art

m itte d

th ro u g h

by

d ire c tin g




th e

th e

o f

a p p lie s

o f

w h ic h

th e

a l l
to

are

w h ic h

w hen

O cto b e r

in

to

d e p a rtm e n ts

ta x e s

p u b lic

Fran ce

to

n ecessary

fix e s

and

th e se
th e

c o u n trie s

go vern m en t

c o lle c to r s
are

p re se n te d

m akes

o f

rep o rt

m ade,

and

th e

m oneys

in

o f

f if t y

pounds

(£ 50 ).

Bank

o f

a u th o r ity

E n g la n d ,
o f

eaoh

hand

Bank

o f

by

th e

th e

in

it

reco m ­
and

th e

reven u es

r e m it

bank

h a n d lin g

th e

am ount

o f

o f
and

to

th e ir

r e s p e c tiv e

a

s m a ll

b a la n c e ,

except
H oneys

Ir e la n d ,

d e p a rtm e n t•

Im p e ria l

ce n tra l

th e

w e e k ly

th e

a

th e

ta x a tio n

e s tim a te s

to

by

a p p o rtio n s

C o u n c il
in

and,

e s t i­

e x p e n d itu r e

la w

p ro p o sed

p rep ares

th e

th e

e x p e n d itu r e

Fed eral

be

"b y

"b ills

T h is

o f

good

P ie t.

ap p ears

th e

to

T reasu ry

th e

th e

m a k in g

fro m

a c t ."

yea r

am ount

fu n d s.

d e p a rtm e n ts

every

e ffe c t

g ra n ts

p assed

in

e s tim a te d

th e

G erm an

th e

ren d ers

v o te

fo r

v o tin g

r e s p e c tiv e

fix

In

to

o f

a d ju s ts

p r a c tic a l

to w a rd

fu n d

o f

ta x e s

by

in c o rp o ra te d

F in a n c e

and

g iv e s

r e s o lu tio n s

"c o n s o lid a te d

h im s e lf

o f

fu n d "

o f

d e p a rtm e n ts.

m e n d a tio n s

The
are

C h am b ers

d ire c t

s u p p ly "

M in is te r

o r d in a r ily

th e

o f

m ean s"

e s tim a te s

th e

go vern m en t

is

o f

m ean s"

th e

The

anu

"c o n s o lid a te d

te rm e d

th e m ,

reven u e.

T to io h

am ount

fo r

w ays

L fc ije s ty .

and

P ran ce

r e c e iv e d

su p p o rt

th e

are

o f

" c o m m itte e

H is

w ays

o o lle a g u e s

h a v in g

in

o f

to

la w

In
h is

" c o m m itto o

are
o r

g e n e r a lly
banks

re ­

ap p ro ved

The
do

not

th e y

pay

Bank

in te re s t

ren d er

tra n s fe rrin g ,

to

a n o th e r

as
In

in

am ount
under
th is

needed

bank

Fran co ,

fo r

th e

th ro u g h
to

m ay

d ir e c tio n
c a tio n
tio n ,
any

o f

w ith
m ay

In
cash

th e

not

p u rp o se

o ffio ©

w h ic h

is

p iro .
Tho

and

o f

th e

d e p o s its
th e

to

b a la n c e

th e

to w n

o f

T reasu ry

o ffic e s

w ith o u t

o f

th e

fu n d s

o f

paym ent

nor

H o w ever,

agent

o r

p la c e

in

in

th e

go vern ­

excess

T reasu ry'

T h ere
06

o f

is

a

o f

th e

is

th e

in

b ran ch

who,

d is p o s e

o f

and

o f

any

The

co n sta n t

w ith o u t
p u b lic

o f

p u b lic

g o v e rn m e n t.

d ire c t

th e

o ffic e s

d e p a rtm e n ts

tra n s fe rs

o f

tr e a s u r e r s -p a y e u r -g e n e r a l,
to

"b a n k s

d e p a rtm e n ts

one

fu n d s

th e

tr e a s u r e r s -p a y o u r -g e n e r a l,
any

o th e r

d e p o s ito ry

b u s in e s s

m akes

exp en se

o f

a

F in a n c e .

each

th e r e in .

fro m

p u b lic

p u b lic
o f

and

d e p o s ita ry

e x p e n d itu r e s .

is

o f

o th e r

p la c e d

fu n d s

m eet

P ran ce

th e

and

T reasu ry

p u b lic

M in is te r

m ovem ent

G erm an y
to

th e

a n o th e r
Such

th is

o rd er

tr a n s a c tio n s

in

tra n sfe r
is

p u b lic

by

R e ic h s b a n k ,

lo c a te d
Tho

o f

B ran ch es,

its

as

gen eral
c o m m u n i­

a u th o r is a ­

m oneys

fo r

w h a te v e r.

R e ic h s b a n k

fo rm a n c e




th e

Bank

th e

th e

m ake

q u ir e m e n ts .
th ro u g h

o f

fro m

th e

to

needed

p r in c ip a l

r e q u ir e d ,

be

and

p u b lic

tr a n s a c tin g

w h ic h

m oneys

be

th e

its

exp en se,

p la c e d

o o n tro l
in

o f

m ay

P ran ce
is

th e

s e r v ic e s

fre e

th e y

w h ic h

th e

on

v a lu a b le

by

m e n t,

o f E n g la n d ,

a

oach
is

or

m ade

fu n o tio n ,

o f

m ay

th e

aro

Im p e ria l

o ity

s p e c ia l

fu n d s

w h ere
w ith o u t

is

th e

tra n sfe rre d

T reasu ry

u s u a lly

and

th e re

is

exp en se
o f

to

m eet

o ffo c to d

Bank,

d e p o s ito ry
it

be

its
a

th e

c u s to d ia n

th e

o f

one
o f

Im p e ria l

th e

re ­

exchange

o ffic e

T reasu ry.

one

p u b lic

b ran o h es,

cash

to

by

fro m

In

cxccsr

o f

th o

om -

T reasu ry.
th e
o f

p er­
-h o

gen eral

"b a la n c e

lo c a te d

in

th e

n ecessary

to

u ry

(o r

"b ills

p la c in g
fu n d s
he




th e

are

not

r e q u ir e d

d iffe r e n t

a n tic ip a te
exch equ er

p ro ceed s

tra n s fe rre d

r e q u ir e d

by

th e

to

in

th e

s ta te s ;
th e

fro m

Im p e ria l

and

th e

c re d it
th e

bank

cash

v t fio n

reven u es

h il ls ) ,
th e

c h ie f

"b y

th e

hank
o f
to

T reasu ry.

on

o ffic e s

s p e c ia l
is s u e

u s u a lly

th e
th e

o f

th e

T reasu ry-

o c c a s io n s

it

is

sh o rt

te rm

T reas­

d is c o u n ts

su ch

"b ills ,

Im p e ria l
c h ie f

c f

T reasu ry.

cash

o ffic e s

The
ac

m ay

March 21,

19 10 .

BAIIK IITOUiny OP 1908.

H ow
p ro ved

her

s p e c ia l
•and

h a n k in g

in q u ir y

p u b lis h e d

m is s io n

G erm an y

body,

p r ie to r s ,

ana

fro m
and
m ost

n e a r ly
th e y

a

th e

c o n s is te d

s e n ta tiv e

la w s

b y

b y

m et

o f

to

in te re s tin g

m eet

n a tio n a l

h u n d red

w h o se

M o n e ta ry

p o litic a l

p o rtio n s

o f

in

a

how

w a3

h e a rin g s

th e

have

C o m m is s io n .
and

w as

a

w h o se

has

im ­

s u b je c t
been

o f

te s tim o n y

G erm an

la n d e d
to o k
w as

fo rm s

a

tr a n s la te d

th o r o u g h ly

They

w h ic h

sh e

The

m e rch a n ts,

s c ie n c e .

d is c u s s io n

th e ir

ana

c ris e s

b an k ers,

a u th o r itie s ,

engaged

19 0 7

m em b ers

le a d in g
o f

o f

fu tu re

tw e n ty -fo u r

in c lu d in g

th e m s e lv e s

c r is is

c o m m is s io n ,

p ro fe sso rs

tw o

th e

com ­

re p re ­
p ro ­

e v id e n c e

re p o rte d ,
one

o f

th e

re p o rt.

This investigation being based upon very recent experience
and its results having been embodied in a revision of the banking
law, presents many points of special interest in the present discus­
sion of monetary reform in the United States.

Some complaints were

heara in Germany over the fact that during the erisis the Imperial
Bank was compelled to raise its disoount rate to 7 & per oent.
--

This

was a condition so abnormal in Europe that it was declared by one of
the members of the commission, Mr. Fischer, chairman of the Chamber,

A

of Reutlingen, to have been, "in the eyes of the public, nothing
short of usury."

The comparative financial isolation of Germany,

as a result of the hostile feeling against her in Prance, found an




I

-2 -

eoho
th e

In

th e

d e c la r a tio n

R e ic h s ta g ,

w ays

ru sh es

g o ld ,

a

th a t

to

th e

th in g

ch arge

s h o u ld

tin g e n t,

or

one-th ir d
co vered

o u s ly

known

($47,500,000)
a m o u n ts
but

w hen

ce n t,

m uch

n o te s

becom es

tin g e n t,

and

w ith o u t

It

are

oven
and

o f B e r lin ,




th e

p r a o tio a i!

in

o f

a

ra te

a

o f

as

new

a d d itio n a l
w eek

ta n .

She

q u e s tio n

o f

th e

B e r lin ,
o f

o f

th e

D r,

th a t

in

o f

w as

in ­

p r e v i­
m ark s

th o se

o f

b y

g o ld ,

fiv e

th e

d is c u s s e d
£ r .

un­

th e

fu ll

r a is in g '

w ith

A d o lp h
o f

th e

G o ttin g e n ,
p o in to d

out

U n i­
and
by

dem and

fo r

c a p ita l

th e

dem and

fo r

c ir c u la tio n

to

d is c o u n t

w ent

a lv ta y 3

hand

in

per

con­

th e

d ir e c tly

o f

m ark s

not

ta x

R ie s s o r ,

U n iv e r s ity

o f

o f

Above

th e

w as

Ja c o b

It

lim it

a

con­

2 0 0 , 000,000

e c o n o m is ts ,

c o m m is s io n .

c o m m is s io n

o f

it

re se rv e

r e s u lt

o f

a l­

u p o n ,"

n o te
a

o f

w h e th e r

472,629,000

o o vo r,

a lto g e th e r,

e m in e n t

th e

T h is

co vered

**■ ■ ■ ■

th e

w as

upon

each , q u a r t e r .
is s u e

Fran co

reo k o n

p r o v is io n ,

g o ld

i t

as

th e

is s u e

m em ber

fu r n is h in g
not

is s u e d

th e

le x is ,

th e

ho

w ith o u t

o.o w n e r , b y

o f

G erm an y

r a is e d ,
w ith

By

a

o f

d i3 0 U S 3 e d

in q u ir y ,

c o n s id e r a b le

r e l a t e d . so
th e

an

in

m ay

th e

Bank

co u rse,

s p e c ia l

o f

a b o lis h in g

D r,

a

m ark s,

la s t

is s u e d

o f

w h ic h

tin e

fo r

th e

m em b ers

m em b ers

ris e

la w ,

o f

known

u ltim a te ly

U n iv e r s ity

n e c e s s a r ily
a

w as

a lw a y s

v e r s ity

th a t

th e

550,000,000

o f

not

at

is

p a y in g

o p e ra tiv e .

le a r n in g

se vera l

s e r io u s ly

n o te s

V /ag n e r,

th e

m ost

o f

is

th e

E n g la n d

can ,

d u rin g

th e re

o f

Bank

w hat

th e

Bank

q u e s tio n s

w as,

to

G am p l i a s s a u n e n ,

G erm an

lim it

to

Von

d iffic u lty ,

th e

in

($112,500,000),
v e s tig a tio n ,

o f

o f

m ade

g o ld

is s u e s

F re ih e rr

tin e s

th e

th e

he

th e

in

"in

reso u e

th a t

Am ong

o f

fc a n d

w as

w ith

- 3 -

th e

n e c e s s ity

D r,

W agner

fo r

th a t

in ju r io u s

s o -c a lle d

w ro n g

tim e

c la r e d ,
o ff

m o re

H e io h s b a n k
re se rv e ,
o f

s h o u ld

ta k e

ic a l

w h ic h
a

i t
th o
o f

r e la tio n
th e

e v il

W agn er,
an

even t

h eard

w as
o f

fro m

s u s p e n s io n
a llo w e d ,




on

th e
o f

sco p e

o f

stre n u o u s

w as

fo r

u n til

fu n c tio n s
th e
o f

w hen
D r,

a

s p e u ie

o f

fre e
th e

q u a n tity
fix e d

th e

P eel

W agner

a ct

p ress

r e s p o n s ib ility

o f

is s u e

had

p a ym e n ts,

b a n ]'

he

th e

lo n g

th e

fa llin g
in

th e re

o ff

o f

r a is in g

th a t

a

o f

th e
th e

o f

n o te
ra te

n o te

re m a in
and

c ir ­
c r i t ­

g ra n t­

had,

re s tric tio n s
to

a t

th e

fra n o e

a d m in is tra tio n

o f

d is c o u n t

m a x im u m

n o te s

B an s*

f a ll

s h ip m e n ts

w o u ld

o f

su ch

an

de­

and

th a t

d o to r m in e

n o te s

and

th e

cash

fu n d s.

w h io h

w as

r e c a lle d

b y D r,

w as

su sp en d ed

in

E n g la n d

p erso n al

r e c o lle c tio n ,

th a t

ste p

th e

w as

s im p ly

b ecau se

o f

m in is tr y ,

th e

a t

b e fo re

ra te

th e

and

by

th a t

to

F r '. n o e ,

fro m

d e c la r e d

cam e

th e

th a t

Iia d

re se rve

th a t

is s u e s

iss u e

p la c e

hnnpen

lik e

co n te n d e d

D is tr u s t,

m easu res

e x te n d e d

been

He

w ro n g

th e

oven

n o te w o rth y

C o n tin e n ta l

th e

b ecau se

back

one.

say

w as

c o n tin g e n t

n o te

a tta in e d ,

e ffe c ts

w h io h

to

u s u a lly

bobw eon

th a t

th e

had,

e x is te n c e ,
th e

as

m ig h t

It

a o u t e ,"

G erm an y

II

o f

one

h e ld

to o

began

i t

o f

th e

not

w as

its

w ay

a t

I f

la r g e

th ro u g h o u t

3

w ere

c re d it,

w as

th i

is

so on

o b lig e d ,

h ig h e r .

tim e s
o f

In

as

m o re

l i c i t

oom es

p e o p le

s t i l l

a

n o te s.

b e n e fic ia l

o ffe o t

ab ro ad
and

a

s ig n a l

ex

is s u e
o f

th a n

it s

be

ab ro ad

be

c u la tio n

in g

w o u ld

to

fro m

th a t

m o re

d is o o u n t.

g o ld

ra th e r

sp read

and

e x is te n c e

danger

and

w as

in c re a s e d

th e

e ffe c t

"th is

an

th o
to

th e

in

o f

is s u e

18 5 7 ,

c ry

e q u iv a le n t
Bank

One

w as

to

th e

E n g la n d
u n co vered

w as

- 4 -

n o te s

beyond

th e

le g a l

A c c e p tin g
c o n tin g e n t
th a t,

in

m a rts,

i t

it

be

a t

d e c is io n

r e ta in e d ,

to

r a is e d

fo r

is

th e

be

a d d itio n

p e rio d s ,
and

w o u ld

lim it.

x ra ±

p r e c is e ly

h ig h e r

tim e s
th e n

h r.

th e
a t

th e re

th a t

th e

m a jo r ity ,

V /ag n e r

r a is in g

s t i l l

su ch

o f

m ay

th e

su p p o rte d

c o n tin g e n t

th e

h o w ever,
th e

to

th a t

th e

s u g g e s tio n

5 5 0 ,0 0 0 ,0 0 0

m u c h -d is o u s s e d
a

be

o h ie f

q u a r te r ly
o f

g re a te r

fu n c tio n

need
o f

th e

c re d it,

c e n tra l

ban t

i
o f

is s u e

com es

in to

p la y .

gen t

o f

u n co vered

oeed

by

1 0 0 , 000,000

o th e r

u n ta x e d

or

p r a o tio a l

th is

s u g g e s tio n ,

b an k er,

! 'r .

T Ir.

F in c h e l

lim it

and

fo r

r e q u ir in g

th ir d

o f

le s s

ta x .

bank




not

be

th e re fo re ,

a llo w e d
m ark s

th e

n o to o ,

lim it

a

a t

th a t

su ch

th e

reserve

th e

c o n tin ­

tim e s

to

a u th o r iz e d

in

th e

th e

w h ic h

ex—

lim it

a t

m ade

by

w o u ld

ro t

d u ll

th e

sen se

o f

th e
w hen

d an ger.

th e

fix e d

reserve

th e
be

s u b je c t

h o w ever,
u n ta x e a
th e

i t

is s u e

is s u e s

o f

s o u n d in g

d e c la r e d

on

one-

to

under

c o n s titu te d

fre q u e n t
He

th e

o f

i f

w i 3e ,

c ir c u la tio n ,
th a t

Com pany

equal

s h o u ld

o f

th a t

&

a lw a y s

th a t

is s u e s

tru e

a d m it

p ro p o sal

a b o lis h in g

s h o u ld

p r o v is o

e x te n s io n

u n ta x e a

lie

fo r

a lto g e th e r

it

th e

o f M e r d e ls s o h n

a d d itio n a l

c o n s id e r e d
o f

th e

change

a

a d o p te d

p re fe re n c e

w ith

th e

exoept
He

and

s h o u ld

g o ld

o o n s id e r

en d s.

s ig n a l,

s ig n a l

a

r.’a g n e r

F is o h e l,

exp ressed

o f

c o n d itio n s ,

h r.

A rth u r

t w o —t h i r d s ,

d id

o ro o sed

p o in t:

am ount

th a n

q u a rte r

c la n g o r
th e

th e

He

e x is tin g
th e

n o te s

2 0 0 , 000,000

even

B e r lin .

w as

su g g e ste d ,

tim e s .
In

a

and

He

th is

a t
th e
a
o f

- 5 -

" I f
o f

th e

we

have

n o te

in

an

m ent

as

w e ll

a lto g
? .s

o f

th e n
in

th e

r e c e iv e

r e ta in ,

but

a t

I

tie

m uch

g re a te r

lim it

a t

s h o u ld

be

to

th e

Luoho,

th e

d is o o u n t

C o n tin u in g




th e

say

p e rio d s

it

is

a t

as

o th e r

is

o f

th e

e c o n o m ic

th e re fo re ,

s ig n a l

doos

m u st

be

we

an

a b n o r m l,

a t

th e
us

to

w o u ld

o fte n

have

ought

to

a

keep

cu rren cy

o v e r s te p p in g

w h ile

d e v e lo p ­

fo r

to

th e

h are

and

I

not

a b le

dem and u p o n

fo r

we

c ir c u la tio n

c ir c u la tio n ,

o f

lo a n s
o f

m ade

th e

b y

th e

co u n try ,

o f

th e

D e u tsch e

in

a il

th e

w as

th e

s o le m n

th e

fu tu re
even
—

d is o u s s io n

th e

m o re

th a t

o th e r

bank

on

th is

seem s

to

me

im p o r ta n c e

o f

th is

in

He

th a t

o f

is

th e

tim e s

th e

su b ;je o t,

th a t

r a in y

been

th e

it

o f

r e la tio n
K e la n d th a t

p r e s id e n t

p a st,

he

b y M r.

d o c la r e d

o m -fin e

e c o n o m ic a lly

th e ir

had

o f

w o u ld

and

r a is e d

Bank.

assu ran ce

th a n

i s ,

bonk,

w as

sta te m e n ts

b ills ,

i t

in

h eo au se

b e n e fic ia l

s ig n a l,

we

o y e r s te p p in g

a b n o r m a l."

c a p ita l

in

our

a c tu a lly

tim e s ,

n o tn in g

o f

th a t

q u a r te r ly

p o in t

"G e n tle m e n ,
a p p re c ia te

wo

fre o u e n t

p o in t

danger

n o te s

o p e r a tio n s ,

th e

th is

u n co vered

C ic e o to r

th a t

b u s in e s s

I f

w as

o f

c o m m is s io n

R e io h s b a n k

im a te

tir a o .

ch a ra cte r

fo rm e r

fo re

w h e th e r

in

c o n d itio n

danger

p e rio d s

im p o rta n t

th e

a

p r e c is e ly

s itu a tio n

The

regard ed

m ost

happened

it

c ir c u la tin g
a

of

su ch

and

th a n

The

has

th e

a t

th e se

year a

w a rn in g s .

q u a n tity
th a t

th is

p o in t

w ro n g

in

la s t

ab n o rm l

q u e s tio n

c e rta in
m in d

th e

h e ie n s h a n h ,

fre q u e n t

sou n d

in

c o n tin g e n t,

been

c o n d itio n

had

b ro u gh t

i t s e l f

to

o f
in

r e c e iv in g

ju s tifie d

flu id

th e
b e­
th e

its
le g it ­
b ills .

s a id ;

you

d e c la r a tio n .

do

not

Even

i f

s u ffic ie n tly
our

w h o le

-6-

in q u ir y

s h o u ld

o p in io n ,
i -

i t

I

appear

s h o u ld

s h o u ld

i f

t .io

you

w ith ,

th e

H e ic h

3b a n k .

A

th e

p o r tfo lio s

ce p te d
tio n

by

o f

th e

th e

m o d e r a tio n
to m e rs

w h o se

b y

D r.

n o m ic

and

keeps

th is

p r a c tic a l

any

c o n n e c tio n

he

w ill

th e

to

tin e

p r iv a te

w o re
"I
a

have

a

aro

bound

a ffa ir s ,
th e

w h o le
he

e v e ry th in g

in c lin e d

b ills

not

o n ly

g e t

th o

tim e s ,

you

g et

a lo o

o f

num ber

th e

G e n tle m e n ,

h ave,

a c t iv it y

su ch

as

and

su co ess

R e io h s b a n k

You

w ith

Im p e ria l B e a k
and

th e

bank.

bank

tc

th e

o f

to

th e

to
th e

be

d e s iro d
th e

th a t

r e p le n is h

can n ot

a c ­

m o d era­

d e s ir e d

k in d

occu py
is

an
to

la tt e r ,
c f

he

o f

sa y ,

in te re s ts ,

not

o n ly

to

cu s­

keep

in

s ig h t

e c o n o n io

s itu a tio n

o f

th e

it s

i t

but

it s

itn

under

o b lig a ­

w as

in s is te d

c o n s id e r in g

th e y

th a t

in

c o u n t r y ."

even

and

have

do
not

evo ry

b e a rin g s

e c o n o m ic

eco ­

"t in t

p o s itio n

th a t

co r s i dor

to

cam e

d e c la r e d ,

o ffic ia l

b u s in e s s

but

co u n try
b e tw e e n

o b lig a tio n

ir e ie t o S ,”

th a t

th e

d iffe r e n c e
Tven

th e

a lw a y s

b u s in e s s ;

p r iv a te

won

d e s ir e .

h a r d ly

th e

th e ir s .

have

th e

o u ts id e

tre m e n d o u s

o f

you

upon

you

w ith o u t

p r iv a te

on

c o n s id e r
tiio y

not

a

fo r m in g

a c c e p t ."

o f

a

la

s tre n g th e n in g

p o s s ib ly

e x te n t

p o in t

o f

c a rry

w ith

in

o f

w ill

tre a ch e ro u s

tim o

o f

b u s in e s s

sen se,

But

banker

in te re s ts .

tr a n s a c tio n

g re a t

in

d u tie s

P .io s s e r ,

to

a

a ll

a c h ie v e d

p r in c ip le

banker

or

a t

assu ran ce

in flu e n c e

to

th o se

m e r e ly

had

b a h !:

fro m

not




th is

to

it

n e ce ssary

th e

d ire c to rs

th e ir

out

d ra fts

th e

m e r e ly

e ffe c t

banker

The

tio n s

th e

R e io h s b a n k .

o f

d is o u s s io n

le a s t

c a rr y in g

any

b e g in

su ccess

th a t

in

in

no

a t

R e io h s b a n k

c o u ld ,

have

c o n s id e r

have

a d m in is tr a tio n

tc

upon

a tip o o t3

in

M arch

S p e c ia l
m ade

p u h lio

B a n k in g

by

la w ,"

a d o p te d

n a tio n a l

b ecau se

syste m

o f

b ecam e

la w

P rio r

to

o n ly

th e

c o n s id e r e d
in

18 6 4

th e

and

p a r tic u la r s

to

bank

re la tin g

in g

w as

Ju liu s

fro m

th e

o f

a

o f

th e

n o te
th e

Bank

th e

o f

U n ite d

p rep ared
who

h as

th e

b a n k .^

fa ilu r e
m ade

fo r

in

S w is s

by

th e

o f

but

in

case
A

N o tio n a l

m ade

a

to

in

ove

th a t

o f

th o
la w

18 0 2

th e

o f
w as

18 8 1

E u ro p e

bank

la w

began

p a n ic .
o f

w as

Bank
are

is

In

and
does

not

w h io h

th e

o f

o f

e m p h a s iz e d

a

by

o f
th e
by

a

bank­
B r.

and

is o la te d

syste m

in

are

S w is s

b a n k in g ,

*

d iffe r

fo r

C o m m is s io n

and

th o se

lim ita tio n

fra m e d

o f

in

d iffe r e n c e s

on

w a3

18 50

la r g e ly

18 8 2 .

systo m

p resen t

in

th o

s u p e r v is io n

stu d y

S w is s

th e

o f

re se rv e s,

b il l

he

N e th e r la n d s

in

th e re

to

a u th o r iz in g

it

The

Ja p a n

M o n e ta ry

fto m

a ct
and

m o n o grap h

life -lo n g

gen eral

banks

a

"T h e

B e lg ia n

bank

g o vern m en t

tr a n s itio n

th o

th e

N a tio n a l

B e lg iu m ,

S ta te s .

th e

th e

19 0 5 ,

Bank

Bank

S w itz e r la n d
o f

o ,

c ir c u la tio n ,
new

The

on

th e

on

19 10 .

about

co u n try

bank.

la w ,

o f

m o n o grap h

la s t

c e n tra l

stu d y

banks




fo r

o a re fu l

in d e p e n d e n t

a rra n g e m o n ts

to

th o

19 0 7,

S w is s

and

c a r e fu lly

Tho

o f

th e

m odel

is

O cto b e r

o w n e rs h ip

Landm ann,

fo llo w e d

o f

b u s in e s s ,

in

on

th e

C o m m is s io n

c e n tra l

r e o rg a n iz a tio n

r e o e iv e

o e n tra l
la w

a

a

su m m er

o rg a n iz a tio n

ch a ra cte r

lik e ly

fa r

th e

c o m m e r c ia l

e s s e n tia lly

th e

a d o p tio n

so

fo llo w e d

in

to

M o n e ta ry

S w itz e r la n d

th o

o p e ra tio n s

th e

th e

a tta ch e s

in s titu tio n

th is

to

in te re s t

2 ,

who

and

ce n tra l

o le a r in g
th e

fe a r

-2

in

18 8 7

th a t

F ran co

w o u ld

be

no

th e ir

p o w e rfu l

D e p a rtm e n t
m ake
to

lo n g e r

a b le

en d eavo rs

to

th e ir

fro m

F r a n c e ."

Thus

have

done,

re n cy ,
ra t

had

event

as

began

u n til

th e

th e

W h ic h

18 9 0 ,

th e

d id

not

ta k e

to

p a n ic

th e




is s u e

d id

not

e x p e rie n c e s

th e

5 0 ,0 0 0

o f

a

o f

2 3 1,5 7 8

in

as

to

v o to

o f

1 5 8 ,6 1 5 ,

It

r e q u ir e d

a c c e p ta b le

o th e r

to

p e rm it

th a t

on

th e
th e

e le m e n t

o f

o f

to

c o in

a t

th e

have

or

th o

lo a n s

Bank

and

by

th e

sam e

tim e

o b ta in

s p e c ie

to

th e

Fran ce

nows

th a t

a id

o f

th e

b ills

in

w o u ld

h o a rd in g

exch equer

"to

fu n d s

o f

th e

F in a n c e

enough

c o m in g

o f

fro m

banks

th e

to

Fed eral

to

th e

an

earn est

dem and

in

Labor

th a t

cu r­
B u n d es-

th e

to

th e

in

fa v o r

o f

a

m a jo r ity

o f

about

hand
sta te

to

th e

fro m

to

o f

in

in

bank,

u n d er­

th e

r e v is in g

to

A p r il,

w o u ld

H ence

7 3 ,0 0 0

18 9 1

c e n tra l

go vern m en t

secu re

c e n tra l

b u s in e s s

s o c ia lis m

th e

p e o p lo .

c r e a tio n

p e rio d

i f

a

th a t

F e d e r a tio n

n ecessary

18 9 1,

fo r

S w itz e r la n d

an nounced

am endm ent

a

in

S w is s

e n tire
one

re q u e ste d

as

banka

Fed eral

in s te a d

su p p o rte d

th o
or

o f

th e

and

th e

im p o s s ib le

r e lie v e d

O o to b e r,

so

i t

s i^ ia tu r o s

c o n s titu tio n a l

so

E n g la n d

o f

by

c ir c u la tio n

A s s e m b ly

o o lle c t

18 8 7 ,

o ash ,

le d

g e n e r a lly

W o r k m e n 's

,

th a t

s u b s id e .

s u b je c t,

%

b il l

th e

and

s u p p ly

is s u e d

b an k s,

w as

w ar

a d e q u a te

1

m ako

o f

th e

s titu tio n

a

o f

c o n tr a c tio n

on

so

n o te

S w is s

Bank

an

U arch

s h o u ld

up

v o te

ad verse

S w is s

ta k e

m is s io n
th e

w as

on

s itu a tio n

T h ese
bank,

th e

in to

c ir c u la r

th e

th e

th o

r e s o lv e d

th a t

o b ta in

h o ld in g s

e v e n ts

m a rk e t,

p lu n g e d

A

red u ce

u n e x p e cte d

th e

to

S w itz e r la n d

o ase

o f

be

n e ig h b o r.

o f

stre n g th e n

w o u ld

su b ­
cam e

th e

con­

a g a in s t

an

v o te s.

19 0 5

to

c o m m u n ity

S w itz e r la n d

p e rfe c t
and

on

w h io h

dem anded

r ig id

o ffic ia l

th e

g o v e rn m e n t.

and

w aB

endum ,
th e

so
in

hope

n ecessary

fu n c tio n s ,
o f

n a tio n a l

c o m m e r c ia l
pow er

fo r

not

th e
are

on

m o re

th a n

th re e
s a le

m e ta llic

m o n th s
o f

th e

o u sto d y

Tho

is s u e ;

and

p u rch ase

te m p o ra ry
o f

G o vern m en t

lo a n s

s u b s c rip tio n ;

and

and

and

bank

lim ite d ,

so

o th e r

o f

o f

and

ch ecks

but

th e

o f

a cce p ta n ce

c o m m is s io n ,

tr a n s a c tio n

but

o f

a t
on

th e

but

o n ly

in

in c lu d e

s ig n a tu r e s ;

m o re

sto ck s;

o n ly

fo r

th e

th o

p u r­
th e

S w is s

p a r tic ip a tio n
b u s in e s s

a c ­

b u s i­

m e ta l3 ;
fo r

T & iic h

th a n

c le a r in g

p re c io u s

fin a n c ia l

o f

c o u n tr ie s

not

a p p lic a tio n s

w ith o u t

ch a ra cte r
th o se

tw o

and

its

S w itz e r la n d

fo re ig n
fo r

upon

o b ta in

d e a lin g

on

in c lu d in g

in

as

by

r e fe r ­

upon

th e

sam o

le a s t

tra n sfe r

o f

th o

as

a

to

e n te re d

b ills

o b lig a tio n s ,

d e a lin g

o b ta in

fu n c tio n s

lo a n s

not

in te re s t;

go vern m en t

th o

bank

agreed

fa ile d

fa r

th e se

b ills

g ra n tin g

to

th e

w as

in s titu tio n s

b e a rin g

th e

o f

19 0 5

p o lls ,

th o

d is c o u n tin g

in v e s tm e n t;

on

th e

and

w ith o u t

v a ria b le s ;

a t

o f

e ffo rt

m o n th s

o f

o f

a ct

s u b s ta n tia lly

s e c u r itie s ,

d e p o s its

o w n e rs h ip

th e

e n u m e r a tio n
th e

b a s is ;

a g a in s t

it

w ere

to

B e lg iu m

n o te

a

o f

o f

o f

ce p ta n ce

p o se

fu n c tio n s

th e

th a t

s ig n a ttir o s

co n co rn o d ,

Bank

p u rch ase

n e ss;

o f

p art

h o w ever,

d e fe a tin g

b a n k in g .

th e

th re e

num ber

w as

and

a c c e p ta b le

o f

T h ese

b u s in e s s

th o

F in a lly ,

g e n e r a lly
th e

co n tro l

in

th e

o f

th e

is

not

C o n fe d e ra tio n .
Tho
je c t

to

any

w h o le ,

nor

in

o ase




th e

is s u e

fix e d
upon
o f

n o te s

m a x im u m ,

th o
th e

o f

nor

u n co vered
G o rm an

by

th e
to

S w is s

any

ta x

c ir c u la tio n

R o io h s b a u k .

n a tio n a l

Bank

upon

c ir c u la tio n

above

Tho

th o
a

fix e d

n a tio n a l

lim it,

Bank

is

su b ­
ns
an

th u

3

a

-4 -

p la c e d

in

is s u e s

w ith o u t

in g

th e

to

a

p o s itio n
regard

d e n o m in a tio n s

20 -

fra n c

“ y
b

th e

n o te s

N a tio n a l
and

a g e n c ie s

fo r

no

o f

case

o f

th e

F ed eral

not

g iv e n

th e re

be

m o re

cash

th o

e q u a lity

Tho

th e

N a tio n a l
are

th e

ner

o f

o o v s rin g
a ls o

r ig id

as

th e

case
th o

th o

o f

m anner

in

o f

th o

th o se
th o
o f

co ver

th e

upon

th e

S w is s

and

la w

n o te s

cash

p e rm it;

is

to

th e
39

Bank

o f
are

o f

tim e s

o ffio o s

o f

th o ir

fa c e

at

th e

lo rra n n

covor
B ard :

th e

fo r
th a n

R e ic h s h a n k ;
o n ly

th e

not

m an­

o n ly

lia o ilit ie s .
am ount

c o n s is t

o f

but

n ecessary

a r tic le

N a tio n a l

tim e

th e

th e

p r o s c rib e s

m u st

o f

as

cash

r e g u la to r !

a ct

sh o rt

s h a ll

p u b lic

th o

it s

e x c e p tio n

n o te s

or

bank

th e

th e

th e

o f

fa r

N a tio n a l

c o n c e r n in g

E n g la n d ,

c o v e rin g

c ir c u la tio n

th e

p e rm itte d

o ffic e s

th a n

w ith

o f

b ran ch

so
o f

r e la t ­

is s u e

C o n tra ry

S w is s

th e se

banks

fo r

need

W ith

The

o th e r

o n ly

n o te

is s u e d

r e q u ir e d

o ffic e .

b a r s ': a c t

o b lig a tio n s
o f

is

re d e m p tio n

and

acoopt

aro

r e d e m p tio n

acco rd an ce

it s e lf

to

Bank

n o u es,

m e ta llic

o e n t . o f th e

o f

in

its

te m p o r a r ily

a l l

own

te n d e r.

Bank

o b lig e d

m o re

w h ile

The

le g a l

r e q u ir e m e n ts

p la c e

in

o f

at

its

ce n tra l

n o te s

fo r




and

th e

he

r e q u ir e d

d e la y

th e

th o se

q u a n tity ,

is

C o n s titu tio n ,

su ch

per

fro m

th a n

im m e d ia te

o n ly ;

and

in s titu tio n s

40

r e d e m p tio n
agency

T reasu ry

but

B ern e

o f

fra n c s.

c a se s,

u n lim ite d
a t

am ount

o th e r

1,0 0 0

and

A ct

Su d o ral

th in ,

e x tr a o r d in a r y

in

th e

B a n k -n o te s

and

Bank

o n ljr

n o te s

50 0 ,

or

E n g lis h

o f w ar,

v a lu e .

“ u s in e s s #
b

b ran ch

th e

d o crease

c o n s id e r a tio n s

10 0 ,

seat

Im m e d ia te
th e

or

U n c o n d itio n a l

its

s h a ll

th e

th e

in

any
o f

te n d e r,

at

o b ta in in g

te rm s

to

50 ,

m ay,

le g a l
Bank

h o ld in g s
in

o f

B u n d e sra t.
in

in c re a s e

r e q u ir e m e n ts

in

n o te s,

to

to

le g a l

a t

le a s t

te n d e r,

5

g o ld

in

o e n t.
o f

b a rs,

not

S w is s

or

fo re ig n

co vo ro d

by

d is c o u n t
In
a l l

m e ta l

b ills

a d d itio n

to

keep

sh o rt

or

d e m a n d a b le

tim e

g o ld

b ars

fo re ig n

For

m is t

fo re ig n

th e

be

fo re g o in g

days

)

a

co ver

th e

60

per

c o n s is tin g

n a tio n a l

( i .o .,

co vered

m o n o p o ly

o f

th e

is s u e

c o m p e n s a tio n s .
B a n !:,

fo r

rig h t

o f

a

n o te

Bank

lia b ilit ie s

by

p e rio d

th e ir

e ith e r

is

o b lig e d

fa llin g

e q u iv a le n t

re tu rn

C o n fe d e ra tio n ,
o f

th is

is

se t

te e n
S w is s

fo rth

yea rs*

in

th e
th e

to

in

th o

due

in

lo g a l

p e rio d

fix e d

to

be

g iv e n

by

tra n s fe rre d

to

it

th e




o f

b y

ta x
th e

th is

to
is

m ake

it

an

la w ;

be

th e

to

th e

to

th e

por

Bank

and

fu r­

th e
am ount

th is

e x p ira tio n

am ount

o f

head

a
o f

f i f ­
th e

o en su s.

re tu rn ,

fu rth e r

C o n fe d ­
C o n s titu ­

la w ,

paym ent

w ith ^ * */

s o le

n a tio n a l

th e

c e n tim e s

fo r

th e

c a lc u la tin g
th e

th e

F ed eral

d is tr ib u te

o f

80

Bank
a

by

p r e v io u s

re p re se n ts

and

to

a fte r

la s t

n a tio n a l

it

annual

m ode

w ill

th o

to

o b lig e d
The

th e

s ta te ;

m o n o p o ly

th e

n a tio n a l

in s ta n c e ,

th e

or

c o n fe rre d

S w is s

b e lo n g s
o f

b ills

ta x e d ,

not

th e

fir s t

39

a s s ig n e d

ta x ,

tu rn ,

28

o o n o o s s io n

by

o f

d u tie s

th o

a r tic le

c a n to n s.

a r tic le

as

to

gran t

c o n c e s s io n

p o p u la tio n ,

is

fo r

tr a n s itio n

The
w h ic h

a c c o rd in g

is

upon

p r iv ile g e

T fliic h ,

paym ent

c o n fe rs

w h ic h

f u lf il
o f

Bank

in

In

wny

n a tio n a l

d is c o u n t

d ire c tly

ye a rs

tio n .

by

not

tw e n ty

e x c lu s iv e ly

th e r,

th e

C o n fe d e ra tio n

o f

e ra tio n

to

to

is

S w is s

b a n k -n o te s ,

is s u in g

u n d e rta k e s

o o in s ,

c ir c u la tio n

g ra n te d
The

g o ld

r e m a in in g

b ills .
W h ile

fo re ig n

th e

b ills .

lia b ilit ie s

te n

or

c o in s .

th e re

or

to

w ith in

te n d e r,

g o ld

th e

fix e d

in

b a n k -n o te

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m o n o p o ly
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—S r

g r a n tin g

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th is

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hank

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As

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m a in in g
th e

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p a r tic ip a tio n

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th o

o o -o p o r a tio n

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th o

and

c o n s titu tio n

C o n fo d o ra tio n

tra n s fe rre d

reach ed
N e x t,

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a

to ta l

A fte r

c o n c e s s io n

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ta x

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go

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in

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to

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not

annual

he

s h a ll

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is

Of

to

any

he

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( $ 9 ,6 5 0 ,0 0 0 ) ,

d iv id e d

in to

fifth s

c a p ita l

w as

o f

th e

p r o p o r tio n

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s u b s c rip tio n ,

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s u b s c rip tio n

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no

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hank

and

Bank

O n o —f i f t h

p u b lic

c itiz e n s

S w is s

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Bank

v a rio u s

N a tio n a l

p o p u la tio n .

in s ta n o o ,

N a tio n a l
th e

th o

o ffe re d

S w is s

T ftilik e
t r ie s ,

th e ir

hanks

whs l i m i t e d




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~

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in

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per

a

in

p r o v id e d

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fh e

in

fo u n d

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as

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to

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regard s

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to

handed

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is s u e

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F ran co ,

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nor

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- 7 ~

B ern e
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under

th e

n a tio n a l

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is

Bank;

th o se

o ffic e s ,
no

th e ir

ow n

d is tin c tio n

c o -o r d in a te
b ran ch
t r o l,

o f

and

th e

th e

le g a l

a t

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The

o f

th e

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m ent

ta k e

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tr e a ty ,

su ch

liq u id a tio n
Bank,

to

o o n tin u e
Tho

m e e tin g
ye a r;
w ith
lo o a l

th e

m em b ers,




o f

th e

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n a tio n a l

th e

a t

is

th e

is s u e )

as

is

b ran ch

th e

are

o f

th o

con­

Bank

is

s ittin g s

th e

b o ard

a c q u ire ,

o f

by

s im ila r
an d,

bank

u s u a lly

o o r a n itte o ;

pow er

o o u n o il.
25

and

bank

p r iv a te
to

a fte r

fo r

th e

m anage­

its

own

th e

n a tio n a l

o ffic e s ,

w h ic h

o h ie f

to

in a p p r o p r ia te

a u th o r itie s

o th e r

a l l

3 u r io h .

o f

gen eral

bank

is

th e se

th e
o f

o f

banks

th e

whom

se a t

b u s in e s s

r e o e iv in g

are

n a tio n a l

m e e tin g s

on

c o m m is s io n s ;

th e

th e

ca rry

The

th e y

m anagem ent

th e

as

bank

o f

o f

a u th o r iz e d

as

"b ra n c h

th e re

and

s h a r e h o ld e r s ,

Bank

th e

fro m

seat

a ls o

o o u n o il;

ap art

m em b ers

o f

r u le

s h a r e h o ld e r s ,

m a n a g e m e n ts.

u n ifo rm

is

g o v e r n in g

th o

bank

a u d it

h o ld e r s ,
15

o f

a

o th e r

o ffic e s

in d e p e n d e n c e ;

Bank

th e m

th e

Bank,

a

b u s in e s s

D ir o k to r iu m

o ffic e ;

e x is tin g

c h ie fly
su ch

o f

th e

"b r a n c h

banks

e x is tin g

o f

lik e

s u b o rd in a te

under

B ern e,

th o

n a tio n a l

(c o n s e q u e n tly

as

a t

o f

a ll

d egree

m e e tin g s

and

p la c e

h ave,

a d m in is tra tiv e

gen eral

( D ir e k to r iu m )

sam e

n a tio n a l

o o u n c ll,

bank

and

to g e th e r

and

o f

Am ong th e

o ffic e

g ro u p ed

c o n s titu te
The

c h ie f

m anagem ent

o ffic e s

m a n a g e m e n t.

have

o ffic e s ,

im m e d ia te

b o ard
o f

th e

annual
T h is

o f

ta k e s
th e

p la o e

lo c a l

m e e tin g

re p o rts,

by

th e

is

th e

is

gen eral

o n ly

once

a

c o m m itte e s ,

m anagem ent

o o u n o il

e le o te d

in o lu d o

o f

and
th e

th e

tn o
sh are­

e le c tio n

com p osed
B u n d e sra t,

o f

o f

40

a ll

fo r

8-

th e

p e r io d

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q u a rte r.
hank
o f

e x e r c is e s

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th e

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to

one

It

th e

and

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fiv e

m a n a g e m e n ts.

o ffic e r s ,

b e tw e e n

lo c a l

o o n s is ts

th re e

th e

The

o f

th e

h o ld in g s

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fir s t

o f
tw o

o f

o f

r a ilw a y s ,

m akes

l 't o ©

under

o f

th o

o e n tra l

($772 )

are

s a la r ie s

are

is s u e

to

th e

banks

s h o u ld

b e g in n in g
p ira tio n
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s ix

o f
o f

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th o

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by

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a c tu a l
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w h o se

F ed eral
a t

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a t

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o f

a u th o r itie s

above

n o te
th e

th o

and

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O ffic ia ls

o f

Z u r ic h ;

3u b -m a n a g e r,

is

o f

and

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bank,

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i t

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own

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th o

lo c a l

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4 ,0 0 0

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th e

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d ire c to ra te

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B ern e.

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c o m m itte e ;
by

a

p r o p o s a ls

d iv id e d

o f

a ls o

fo u r

are

lo c a te d

who

th e

th e

fu n c tio n s

are

vhooe

its

or

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s u b m its

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m em b ers

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W h ic h

m em b ers

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and

th e

o p e ra tio n

on

o f

a

and

o e n tra l

th e ir

fo x *

c o n tro l,

m anager

bank

tr a n s itio n

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ch osen

In




o f

h is

v ic e -p r e s id e n t

D ir e k to r iu m ,

th e

every

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w ith

once

hank

c o m m itte e s

d e p a rtm e n t,

ch arge

th e

th o

le a s t

th e

m em b ers,

th e se

tr a n s a c tio n s

F ed eral

p e r io d

—

at

over

c h o ic e
The

gen eral

n o te -is s u in g

and

th o

th re e

d e p a rtm e n ts,

d e p a rtm e n t

is s u e .

a

lo c a l

m e e ts

p r e s id e n t

th e

m em b ers

th e

r e s p e c tin g

in g

fo r

o f

o th e r

n o m in a te s

c o u n c il

s u p e r v is io n

o o n s is ts

th o

is

hank

d ire c t

B u n d esrat

o f

head

w h ic h

a ls o

and

fe r ,

y e a r.

w as

w ith in

th e
so on

b e h a lf

o f

p r o v id e d
th re e

n a tio n a l
a r r iv e ,
and

in d e p e n d e n t

on

th a t

years

Bank.
th e

th e

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o f

lo c a l

fro m

th e

th e

n a tio n a l

b e h a lf

n o te

it s

ex­

Bank
le g a l

su cce sso rs,

to

s t i l l

o ir o u la tio n ,

case

he
o f

in

hanks

e q u iv a le n t
o f

th e

fro m

o f

th ro e

th e

day

e x p ira tio n

cash

th a t

o f

o f

have

th e ir
yea rs

any

th e

r e c e iv in g

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o ld

n o te s

th o

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ceases
fo r

th e

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to

th e

h a n k -n o te s
Bank

cash

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th e

th e
in

re d e m p tio n

goes

th o
to

to

above

th e

th e

cash

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A t

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cash

m ay

In

th e

q u e s tio n .
th o

th a t

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Bank

m e n tio n e d ,
and

Issu e

N a tio n a l

a cce p ts

e x is t

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th ir ty

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above
to

hanks

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o ver

N a tio n a l

th ir ty




w ith in

o u ts ta n d in g

th e

fu n d .

n o te s

handed

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n o te s

th e

e q u iv a le n t

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th e
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in v a lid

T IE

An
Im p e ria l
m oney
o f

B E IC H S B M K

e x p o s itio n

Bank

is

m ade

G erm an

B a n k in g

O e k o n o m is t, "

M o n e ta ry

in

th e

th o

tra n sfe r

b e tw e e n

th e

fo r
bank
a

tra n sfe rs

r e m a r k a b le

tra n s fe rs
am ount
in g
a

up

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m illio n

in

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to

m ark s;

am ount

o f

a t

a t

by

19 0 0

o f

keep

is

th e

san e

y e a r
in

35
and

th e

tr a n s a c tio n s

th e

R a tio n a l

b ro u gh t

out

is

h o u se,

m any
a t

The
in

th e

to ta l

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( $ 15 ,5 0 0 ,0 0 0 ,0 0 0 ) .

o n ly

ce n t,

next

m ark s
le s s

19 0 8 .
th e

15
In

seven

fiv o
The

m illio n

about

th ro u g h

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m ark s.

m illio n

per

th e

The

2 2 2 ,13 7

y e a r

v o lu m e

m ark s;
(a b o u t

th a n
por

th e

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a d d itio n

R e io h s b a n k ,

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su ch

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y e a rs,

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and

R e ic h s b a n k

G erm an y

18 8 8

th e

th ro u g h

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2 6 0 ,6 5 7

about

by

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m illio n

o n ly

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it s

In

"D e v e lo p m e n t
"D e r

c le a r in g

a t

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16 3 ,6 3 2

w as

on

G erm an

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fa c ts
a

th e

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to

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e d ito r

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19 0 7 ,

D ew Y o r k

been

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and

s e ttlin g

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50

F ran z,

re d is c o u n ts .

m illio n

about

R e io h s b a n k ,

m o n o grap h

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M ARKET.

r e g u la tio n

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6 3 ,8 2 5

th e

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R o b ert

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9 3 ,6 9 8

fu rth e r

D ew Y o r k

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18 9 5

g ro w th

T h is

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IIQ D E Y

in te re s tin g

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GERM AK

th o

S yste m "

C o m m is s io n .

T fliio h

IIIE

p la y s

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p art

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ADD

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19 0 5

19 0 6 ,

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\

-2 -

e x is te d
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In

in

G erm an y,

c o u n tr ie s

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R e io h s b a n k ,
s tra te s

by

to

but

th e ir

reaso n

th e

w ith in

ch a ra cte r

p o s its

on

in o re a s e

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R e io h s b a n k ,

r e q u ir e m e n ts

w h ile

th e

average
decade

d e p o s its
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r e g a rd in g
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w ith

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th o u g h

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in




tu rn

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ta n ta m o u n t
it

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in

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In o re a se

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its

n o te

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34

to
th a t

ce n t,

accoun t

th e se

o f

d e p o s its ,

fo r

th e

o f

an

o f

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a d e q u a te
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d e s ir a b le

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th e

w as

b a s is
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by

ex­

d e p o s its .

exp en ses

in c re a s e

c ir c u la tio n

lo s s

per

o p e ra tin g

cash

de­

p ro ven

ju s tifie d .

th e
an

th e

fa r

th e se

th e

ohange

dem on­

p e rio d .
on

bank

fu lly

o f

w as

e q u iv a le n t

th e

th e

c o m p e lle d

on

sam e

acooun t

re q u ir e m e n ts

th e

It

o p e ra tio n s

th e re fo re

m in i m u m

th e

at

a cco u n ts.

in c re a s e d

th e

bank.

p a r tic u la r ly

fe lt

in te re s t

on

r e q u ir e m e n t

w h ic h

19 0 6

tra n sfe rs

no

o p e ra tio n s

seem s

a

o f

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o f

th e se

in

tr a n s a c tio n s

in c re a s e d

d e p o s its .

v o lu m e

kept

u se

ap p ears

to

had

o e n tra l

tra n s fe r

h as

o f

th a n

in v e s tig a tio n

la r g e r

It

f e ll

iln p s s U r r

reaso n

a

th e

a co o u n ts

o f

and

d e p o s its

bank

th e

th e se

th e

th e

stre n g th e n e d ,

e n a b le d

per

v o lu m e

and

fro m

th e

o f

by

aooount

m in im u m

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Im p o rta n t,

w as

w as

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in c re a s in g

bank

p o s its

th e

g ro w th

lim it

by

tru e

fre e
by

th e

a ls o

m in im u m

th a t

th e

88

g ro w n

g ir o

g ir o

18 9 8 -19 0 7 ,

had

is

on

it s

o f

v o lu m e

d e p o s ito r s .

d u rin g

fo r

am ount

th e

im p o r ta n t

th ro u ^ i

s t a t is t ic a l

tra n s fe rs

th e re fo re ,

new

th e

o f

le s s

tra n sfe r

a c c o m p a n ie d

g ir o

b a la n c e s

adopt

th e se

th e se
th a t

th a t

w ith in

o f

d e c la r e s

m o re

are

o p e ra tio n s

Fran z

th e

The

th e

c o n s id e r a b le

a

H err

o f

o p e ra tio n s

o f
de­

w h ic h

th r e e fo ld

- 3 -

am ount

o f

su ch

n e c tio n

th a t

s p e c ie .

As

s u lt

o f

th e
a

b ills

c re d ite d

(a b o u t

creased

in

19 0 7

R e io h s b a n k
o f

d u stry

is

th e
and

th e

g ir o

p er

per

o e n t.

3 6 .1

p er

c e n t .) ;

e t o .,

6

p er

1 0 ,6 9 3 ,6 9 5

27

per

(th e

per

o f

b a n k in g

d is c o u n ts .

T h is ,

se n te d

to

th e

had

th e ir

The

gen eral




o r ig in
r u le

and

fa c t
18 9 2

in

18 9 2 ,
in

th a t
w as

th e

On

th e

v a lu e s

p a id

in

con ­

fo rm

are

o f

th e
o f

re ­

d is ­

c a s ^ ->

have

but

to

d e c lin e d

2 0 ,7 0 7

r a p id ity

th e

o f

average

n ark s
tra n sa c­

v o lu m e

7 ,7 9 2 ,6 7 6 m a r k s ,

sh are

h o w ever,

tra n s fe r

M arch

3 1 ,

co n cern s

o f

had

and

o f

in ­

d is c o u n tin g

in

a ll

oases

in

th e

o f

th e

R e io h s b a n k

is

im p ly
by

fie ld
to

m oney
o f

and

th e
and

fin a n c e

d is c o u n t

o n ly

in s u r­
e t c .) ,

a lo n e

w as

in d iv id u a ls ,

0 .8

la r g e s t

th a t

In ­

b an k ers,

p r iv a te

th e

d is tr ib u ­

c o r p o ra tio n s

th e

o f

fo llo w s :

in d u s tr ie s ,

secu re
not

as

th e

p r iv a te

b a n k in g

a llie d

does

19 0 8 ,

w as

fo u n d a tio n s ,

a ls o

tr a n s a c tio n s

tra n s p o rta tio n ,

c r e d it(b a n k s ,

b o d ie s ,

fo r

in

co m m erce,

in te r e s ts

R e io h s b a n k

th e

o fte n

a cco u n ts

in c re a s e

p r iv a te

a g r ic u ltu r e

The

not

in

th is

m ark s.

o e n t.

co rp o ra te

o e n t .;

in

c e n t .;

m oney

q u ite

are

in

m ade

in s ta n c e ,

$ 7 ,5 0 0 )

w o r ld .
o f

fu lly

tra n s fe r

p a r tic ip a n t

a cco u n ts

fo r

th e

w h ic h

m e n tio n

a cco u n ts

great
by

to

a cco u n ts.

on

(a b o u t
The

be

c o lla te r a l

b a la n c e s

b a n k in g

not

c a se ,

r e s p e c tiv e

in d ic a te d

o e n t .;

5 2 .6

in
upon

m ark s

la r g e s t

p ro p er

th e se

fa c t,

a cco u n t,

tra d e ,

1 3 .8

o f

19 0 7,

to

but

need

th e

is

per

The

an ce,

in

is

a c o o u n ts

lo a n s

average

h o w ever,

tr a n s a c tio n s

tio n

to

$ 5 ,0 0 0 )

tio n s ,

o f

military

3 0 ,4 5 6

It

o p e ra tio n s ,
o r

The
fro m

g ir o

m a tte r

c r e d it

co u n te d
m e r e ly

in c r e a s e •

per

o e n t.

p r o p o rtio n
b ills

p re­

b a n k in g
and

o ir o le s

b a n k in g .

su oh

b ills

o f

-4 -

exohange
e x c lu d e
th a t

as

aro

fro m

i s ,

it s

b ills

T h ere

is

m oney

o la im

a

tim a te ly

p o rtio n

th e

o f

o f

beoom es
goods

b ills

in

not

a

tra n s fe rre d

fro m

in

in

e c o n o m ic

in

o f

b ased

i t s e l f .

e c o n o m ic

b e g in n in g
to

o f

in

a

secu red

th ro u g h

s o ld
is

th e

th e
By

re le a s e d

o on su m er

w hen
o r

u l­

b e in g

goo d s.

tim e

~

re a l

liq u id a tin g

goods

w ith

is

and

to

tr a n s a c tio n s .

upon

It

th e

th e

b ills

b u s in e s s

b il l

fu n c tio n

and

fin a n c ia l

e x is te n c e ,

p ro d u cer

exch an ge

and

fid e

c o n ta in e d

fix e d

th e

c re d it

The

s e c u rity

u se,

"b ills

bona

th is .

c a p ita l

fre sh

on

a lre a d y

th e

c a p ita l
fo r

s o -c a lle d

fo r

c a p ita l

p r o d u c e r 's

m e r c a n tile

b ased

m easu re

d is c h a rg e s

th e

th e

reaso n

a

a v a ila b le

are

are

b u s in e s s
it

g e n u in e

p o r tfo lio

good

is

by

fa c t

w h ic h

ve ry

d is c o u n te d

m eans

in

and
th e se

th e

m anu­

fa c tu re r.
The
b ill

o f

m is ta k e
bank

th e

exch ange
in

to

w h ic h

r e s t,

b a n k in g ”

m ake

c o u ld

th e
is

th e

c r e d it

not

bo

sh are
fo r

th e

not

"m e r c a n tile ”
s u ffic ie n tly

It

w as

e ffo rts

p r o p e r ly

o n ly

to

o la s s e d

d is c o u n te d

by

th e

fa c t

about

a fte r

a

"fin a n c ia l”
to

19 0 7
fro m

under

b ills

th a t

and

p a te n t

e lim in a te

o f

R e io h s b a n k

p r o p o r tio n

h o ld in g s
The

o f

th e

average

( $ 1 1 ,0 0 0 ,0 0 0 ) ,




by

o ases.

a

th e

th a t
it s

h a v in g

g reat
been

th o

any

R e ic h s -

h o ld in g s

fir s t

c r o d ite d

th e

p r e c lu d e

a ll

h ead.

to

For

"fin a n c e

m a jo r ity

h a n d le d

o f

fir s t

an cl

b ills
by

b an k s.
The

y e a rs.

h o w ever,

a cco u n te d

d is c o u n te d

b e tw e e n

s p e c ia l

la r g e

are

b ills

i s ,

In d iv id u a l

began

b ills

d iffe r e n c e

and

o f

fo re ig n

R e io h s b a n k
h o ld in g s

th e

to ta l

In

b ills

h as

exch ango

In cre a se d

19 0 7

am ount

o f

o f

w ere

th e

c o n s id e r a b ly

4 4 ,4 6 1 ,0 0 0

fo re ig n

to

b ills

to ta l
in

recen t

p u rch ased

d u rin g

m ark s

-5

th e

yo ar

th at
th e

■ was

2 6 8 ,119 ,0 0 0

ad equate

h o ld in g s

co n tin u o u s

co u n trie s,

o f

part

b u sin e ss*
creases
th e
as

m uch

co n tra ry ,
show n

by

e ig n
rate

o f

as

th e

It

m ost

R a tio n a l

Bard:

exchange

b u sin e ss

o f

th e

o f

to

or

th e

paym ents

are

o f

a

exp o rts.

T h is

d isco u n t

p o licy

B e lg iu m .

It

re q u ire s
it

s o lid ity

o f

fo re ig n

ily

in cu rre d

in

h a n d lin g

a
is

th an

th e

goes

o rg a n iza tio n

n a tu ra lly
d o m estic

fo re ig n

p o licy

sayin g

m ore
b il ls

b il ls .

th e

lo sse s

in ­

Ahon,

to

s e ll
in

form s

Bank

th at
and

o f

bank

h ith e rto

d iffio u lt
and

o la ss

in cre ase

and

th e

on

u n fa v o ra b le ,

A u stro -H u n g arian

w ith o u t

sp o cia l

is

o ffe rs

fu rth e r

g o ld

by

th is

b i l l s .

paym ents

fo r

fo re ig n

sin ce

fa v o ra b le

fo re ig n

m oans

w ith

to

H eieh sb arik

d e la ys

reco g n ized

e x ce lle n t

a tte n tio n

h o ld in g s

was

p a rtic u la rly

exchange

r a te s ,

an

It

ra tio n a l

a

as

o f

in te rn a tio n a l

su c c e s s fu lly

m a te ria l,

b ala n ce

o f

Its

a o tu al

are

R o ich sb a n k ,

ra te s

o f

h ills

in cre ase d

p reven ts

th e




th e

oxchange

and

th e

g iv e n

b ala n ce

su p p lem en t

pursued

o h o io e

has

th u s

exchange

fe c tiv e

o f

p o ssib le

h ig h e r

b i l l s .

been

19 0 8 ,

($6 5 ,0 0 0 ,0 0 0 ),

fo re ig n

a cco rd in g ly

W henever

as

o f

re g u la tio n

and

e a rly

m arks

th e

a

fo r­

th e
an

e f­

has

and

th e

fo re ig n

ca re fu l

to

a sce rta in

are

m ore

e a s­

K
Jan u ary

2 1 ,

19 10 .

t*

/

v

it*

HOW T E E

The
Germ any,
even
te rse

R a tio n a l

190 8
D r.

w ith
von

in

to

an

M on etary
and

h is

tw o

th e

c ia te s

th e

ch ara cte r
bank

is

t r i a l
th e

not

m ust

b i l l

th e

o u ssin g
co llo q u y

"Q .




a

b i l l

"A .

not

o f

th e

o f

th e

by

o f

th e

bank,

banks,

th e

le a st

tw o

u n ifo rm ity

o f

out

in

H err

to -d a y

in

th e

D r.

von

o ffic e rs
th e

was

Dumrn,

and h is

o f

th e

d e cla re d

It

was

d e cla re d ,

o f

b ills

in

tim e

and

known

ra te s

a t

to
th e

bank

th ere
be

o f
—

asso ­

o f

m ade
th e
R e ich s-

and

how ever,
m ay
m ust

tho

in d u s­
th at

tak e.
be

so lve n t.

bank,

H err

D ire cto r.

"th e

co m m ercial

th e

a

th e

bank

q u estio n

th e

o f

Sen ator

R eio h sb an k ,

A ld rich

it

by

sum m er

fo r

p a rtie s

d isco u n t

"b alan ce

but

k in d

m on th s

th e

betw een

th e

D iscu ssin g

th ree

at

th e

e m p ire ,"

e x a c tly

o f

Sen ato r

vfliich

h o ld

p u b lic

C o m m issio n

and

Bank

brought

is

Im p e rial

to

in te rv ie w

o ffic ia ls

to

fo r

th e

exceed

nam es

an

r e p lie s .

bank

p rescrib e s

They

h is

o n ly

o f

m ade

or

and

borrow ers,

o f

asked

b u sin e ss

e n te rp rise s

la w

w ere

C o m m issio n ,

th e

com m erce

re p o rt,

le a d in g

in stru c tiv e
o f

o f

OQKUEBOB

R o ich sb an k ,

V io e -P re sid e n t,

q u e stio n s

but

Gorm an

typ es

PROTHCTS

th e

C o m m issio n ,

S e a rch in g

b r ie f

a id

a sso c ia te s

o f

BADS

w h ich

o f f ic ia l

G lasen ap p ,

o f

In

d iffe re n t

m anner

A ld rich

m anner

endeavors

"betw een

CBaBftS

on

D ls-

fo llo w in g

ooourred:

W o u ld

a

custom er

d isco u n ted
Y e s;

and

a t
a t

4

in

per

every

a

l i t t l e

o en t.
branch

tow n

in

Sou th

to -d a y?
o f

th e

R eio h sb an k .

th o

Germ any

get

2

" Q.

C o u ld anyone g e t a lo w e r r a t e th a n 4 p e r c e n t .?

"A .

Bo;

was

a

tim e

th e

Bank

th e

m arket

d e cid e d

th e

when

o f

th e

have

"A .

The

th e

to

o f

p o licy
"Q .

to

th e

m ade

o f

Bo;
rate

" Q.
d isco u n t
"A .

Is
or
It

co m m o d atio n ,
th e




The

any
o f

any

th ere
was
th e

is

w o u ld

ra te ,

to

There

th at

w h ich

purchase

but

in

1896

in
it

was

was

change

th at

th at

a

lie ich sb a n k ,
ought

a l l

in

p o lic y .

was

it

o f

th ou gh t

w ith

not

to

fa vo r

its
make

o f

task s
a

and

d is tin c ­

anyone.

It

is

a lik e .

on

th e

R e ich sb an k

part

and

was

o f

th e

oth er

th is

change

p riv a te

banks
o f

banks.

as

p o licy

a g ita tio n ?

w ore

s t i l l

i f

th e ir

w h eth er
is

d isco u n t.

b u sin e ss

th ey

th e

e x ce p tio n

q u e stio n

th e

fo r

th e

3o r v e

no

not

th e

to

R eio h sb an k

th an

has

to
an

servo
is

fo r

o f

favo r

th e
to

account
part

rate

to

o f

lis te n

a

by

th e

d isp o sed

ch aracter

du ty
ho

co m p la in ts

h ig h e r

R e ich sb an k

lo an s

R eich sb an k

w h o le .

to

th at

o f

everybody.

reason

an

rate

sim ila r

co m m u n ity,

m ake

th ere

o f

th e

or

co m p e titio n

bank

o f

one

fa v o ra b le

reason

lik e

bank

th e

W as

"A .
est

w h o le

a

e .,

fo r

im p o rtan t

c la s s ,

because

th e

.

m ore

rate

in s titu tio n

th e

any

one

a

o n ly

d id

1

now,

at

state

m ost

ce n tra l

d u tie s
tio n

b ills

P le a se

great

does

but

"Q .

has

R e ich sb an k

E n gla n d
p rim e

to

R eich sb an k

o ffe rin g

or

n o t.
th e

e v e ry b o d y ."

o th er

every

everyone

o f

th e

The

banks.

a p p lica tio n
bo

lo w ­

fo r

s a tis fa c to ry ?

who

oom os

The

p rin cip le

co m m u n ity,

but

fo r

the

a c­
o f

I

-3 -

How t h e
to

tid e

over

"T h e
in g .

do.

purohase

p e rio d s

o f

governm ent

They

n ig h t

governm ent

also
I f

fro m

them

aid e d

d e ficie n t

d e p o sits

d ep o sit

th ey

is

tre a su ry

revenue

treasu ry

fu n d s

w ith d raw

w ith

w ith

or

h i l l s ,

was

h ills

us

th e ir

tem porary

as

a

set

fo rth

w ith

us

p riv a te

cre d it

acco m m o d atio n

runs

fo r

th e ir

ra te ,

are

fo llo w s:

safe -k e e p ­

firm

lo w

c re d itin g

as

or

we

hank

u su a lly

account

w ith

th e

p ro ceed s.
"Q .

That

rate

"A .

They

do

oth er

Is

"A .

To

"A .

That

in

th e

"A .

th ere

any

fix e d

m ake

paym en ts
sam e,

"Q .

are

it

e x ce p tio n

oth er

F ir s t ,

second,

th e

an

th e

conduct

and,

hut

d isco u n ted

as

any

o f

th e
h a

fo r

3

th e

th e

re la tio n s
its

in

or

o f

has

h an d le

to
th e

branches

governm ent

o f

th e

Germ an

vfliat

is

re g u la te
G iro
as

d e p o sit

to

th e

govern m en t?

Governm ent

re q u ire d

th e

or

w e ll

th e

rate

person?

th e

b u sin e ss;

governm ent

w herever

2oe3

in stitu tio n

hank
to

made

to

th e

o f

b u sin e ss

re ce iv e

H e ich sb an k
in

th e

c irc u la tio n

tra n sfe r
as

o f

to

th e

th e
hank?
m oney,
and

sum s

to
due

e x is t.

d iffe re n t

branches

o f

B e ich sb an k ?
"A .

count




a

Bo.

" Q.

th e

hear

hear?

Bo.

"Q .

to

not

th ey

b il ls .
"Q .

hank

do

and

Y es.
is

livery

tre a te d

departm en t

th e

sane

as

o f
any

th e

governm ent

oth er

cu stom er.

has

its
The

own

a c ­

H e ich sb an k

4-

is

th e

fis c a l

th in g

th at

o b lig e d ,

agent

is

R e ich sb an k

m ig h t

q u estio n

ta n

o f

tio n

th e

U n ited

count
h is
as

w ith
rate

fiv e

th e
to

per

and

co m p e n sa tio n .
head

a

th ey

W ith o u t

syn d ica te

fo r

do

e very­

b e in g

tak in g

over

a

th e

c e n t.,

o f

w h ich

th e

was

th e

sid e

ono

has

p o licy

n otes

p u b lic,

on

co n tin g e n t

th e

re q u ire d ,

and

th e

issu e ,

a ttra c te d

o f

d iscu sse d

n ote

so

hank

betw een
bank

m uch

in

w ith o u t

under

a

a tte n ­

su p p ly in g

regard

to

Sen ator

o ffic e r s

the

th e

d is ­

h ld rich .

on

th e

and

o th er,

fo llo w s:

2o

you

youhave

when

a

"A .
rate

o f

even

Ho.

at

d iso o u n t
3p er

tim e s

o f

stre ss

cen t,

ta x
"A .

p u b lic

and

th at

la rg e

She

5

per

when

th at

it

rato

o f

to

th ere

any

issu e

o f

taxed

n o tes;

n otes

At
had to

us

as

b e tte r

o f

has

tim e s
pay
a

d isco u n t

fo r

b ills

o u tstan d in g ?

R e ich sb an k

be

m ust

se co n d a rily

Is

rate

a

not

we

have

ta x

m atter

fo r

you

in creased

d isco u n ted

o f
o f

to

its

5

per

cen t.

p o licy

add

th e

in
5

per

d isco u n t.

w h io h

"Q .
th e

taxed

ce n t.

w o u ld

H e ich sb a n k

is

h ig h e r

we h a v e

su ggested

in stitu tio n
it

a

am ount o f

above

been

th e

charge

o c c a sio n s th e

c e n t.,

has

to

alw ays

On

"Q .I t




o f

S ta te s ,

am ount

th e

a sso cia te s

"Q .

a

Governm ent

lo a n ."

s p e c ia l

m arket

Im p e rial

w ith o u t

On t h e

in

th e

re q u ire d

th e

governm ent

o f

bo

has
a

co n sid e red

to

care

m o n ey-m ak in g

co n n e ctio n
in

take

oth or

betw een
w ords,

in

th e

fir s t

o f

th e

p la ce

p u b lic

as

in te re s t,

in s titu tio n .
th e

ra te

co u ld

o f

th ere

d isco u n t
be

a

and

co n d itio n

5-

o f

a ffa ir s

n otes

h a vin g

to

rate

m ent

th e

th e

Y es.
pay
o f

That
a

ta x

at

co n d itio n s

was

fo re ig n

r it y

fo r

Upon

th is

p o in t

"Q .

per

cen t,

h ills

note

as

"A .

and

th ere

w ere

no

taxed

th e

They

tim e s

exchange

to

your

d e cid e

Ly

co u ld

n otes

fo llo w in g

not

require t h e

or

th e

fa ct

does

d ire cto rs

e x p la in e d

but

She

co llo q u y

w eek ly

R eich sb an k

i t s e l f

w h eth er

in flu e n ce

in

th e ir

ju d g ­

ra isin g

o f

th e

r a te ."

o f

th e

R eich sb an k

used

w ere

in

th e

o ffic e r s

th e
he

o f

never

as

a

p art

tre a te d

o f
as

th e
an

secu ­

a s s e t.

occu rred:

sta te re n t

you

carry

none

o f

your

a sse t?

So.

"Q .

She

o f

issu e ,

an

happened.

w arrant

A cco rd in g

and

6-§-

was

ce rta in

fu rth e r

th at

n otes

has

d isco u n t.

It

own

rate

o u tstan d in g ?
"A .

th e

w here

o n ly
"A .

are

regarded
Y es;

m ere ly
as

th ey

h e ld

issu ed
are

here

when

and

p a id

co n sid e re d

as

in

your

branches

in

store

out?
issu e d

o n ly

when

out

o f

D eutsch e

Bank

w o u ld

our

p o sse ssio n .
"Q .
issu e d

But

’. T h a t




is

R eich gb arik
"A .

100

in

th e

hands

o f

th e

he

an

Y es.

"Q .
a

n ote

n ote?

"A .

day

a

m arks

The
fro n

th e
n ote

system
o f

R eich sb an k

100

o f

i f

a

nan

d e p o sits

to ­

narks?

w o u ld

c irc u la tio n .

h o o k k eep in g ,

cre d it

th e

man

100

narks

and

deduct

6-

"Q .
th e

She

fo u r

Item ,

o th er

"A .

banks

European

th e

step s

"Q .

"A .

p ro tect

w ore

m ust

w h ich
th e

tak en

have

W hat
We

is

g o ld

at

th e

m easure

is

How

"A .
"Q .

I f

th e

Seven

h ig h

th is

"A .

are

th ose

th e

n otes

o f

re lie d
stock

tim e

upon

o f

o f

so

th e

th e

la rg e ly

cou n try,

p an ic

o f

by

th e

th e

190 ?

ques­
le d

to

Do

o n ly

you

step s

o f

e ffe c tiv e

th e

in crease

rate

add

to

your

g o ld

at

d isco u n t.

We

co n sid e r

th at

one.

at

per

had

to

take?

ra te

o n e -h a lf

th e

3cne

th at

tim e ?

cen t.

not

been

s u ffic ie n t,

you

w o u ld

have

ra te ?

Y es.

"Q .

d id
th e

was

and

in cre ase d

tak en

step s

in creased

" 3 .

im p o rtin g

"A .
im p o rte rs
tin e s

when

you

Y e s,
fo r

th at
th e

th e

"A .

’W e l l ,

wo

lo a n

m ay

is

tim e

o rd in a ry

A ro

p o rts,

also

m oney

w ith o u t

in te re st

to

p eo p le

who

are

g o ld ?

"Q .




b a n ts,"

d iscu ssio n :

You

tim e .

fu rth e r

oth er

issu e v

m easure

to

fo llo w in g

t.iis

th e

banks

what

th at

o f

o f

Y e s."

Upon

tio n

"Issu e s

th ere

any

b e sid e s

ra ise

at

done.
th e

We

g o ld

g o ld

is

in

advances
tr a n s it;

w ith o u t
we

do

im p o rt

oth er

p o in t

is

not

stop s

tak en

to

in crease

g ran tin g
such

make

tim e s

lo an s
our

w ith o u t
t a r i f f

th at

even

to

in

reached.
th e

in te re st

fo r

in te re st

th e

on

im p o rt?
g o ld

purchase

o f

im ­

-7

fo re ign

g o ld

co in s,

"Q .
"A .
ra ise

Pay
Y es;

but

rate

o f

th e

fo re ig n




a

b i l l s . ”

as

h ig h e r
th is

th e

Banh

o f

E n g la n d

does.

p rice ?
is

d isco u n t,

not

im p o rta n t.

"b esid es

s e llin g

The
a

re a l

c e rta in

rem edy
am ount

is
o f

to

February 7, 1910.

USE

0 jT C H E C K S

One
p u b lic

th e

hy

o f

n a tio n a l

In stru m en ts
o f

th e

and

M arch

16 ,

w h ich
tio n

c it ie s

o f

a n a ly sis

o f

th e

em p lo ym en t

o f

cre d it

hy

hy

r e t a il

d e a le rs

U ebraska,

percen tage
was

th at

6 8 .7
in

2 5 ,0 0 0
hy

to

2 1 .8

s ta te ,

N ebraska,

7 8 .5

per

s ta te s ,
la rg e

lik e

o it ie s ,

7 0 ,5

n orth
show

per

D akota
a

sim ila r

c it ie s

m ak in g

th e ir

se le cte d

Out

to ta l

o f

th e

c e n t.;
th e

p ro p o rtio n
and

order

Io w a,
and

Sou th

o f

7 5 .2

per

Texas,
D akota,

co n d itio n

o f

An

w ere

o f

tnan

d e p o sits

5 .4

c e n t.;

in

out

checks

checks
per

o f

exam in a­

are
is

I llin o is ,

h ig h e st

6 8 .5

d ate,

the

le a vin g

paym ents

sp e cie ,
th e

la b o re rs.

under

th at

r e t a il

o f

$ 3 6 ,2 5 5 ,3 0 8 ,

s ta te s ,

in d ica te d

E in le y ,

se le cte d

ch eck s.

sta te s

c e n t.;
and

a

in

in

fiv e

c e n t.;

on

aggregated

in h ab itan ts,

in

and

a g ric u ltu ra l

fiv e

per

farm ers

reserve

wa3

c e n t.,

Texas.

each

I llin o is ,

p er

$ 4 ,8 9 4 ,1 8 1 ,

cu rren o y,

o f

d e p o sits

farm ers
The

and

o u tsid e

r e t a il

in

o e n t.;




banks

th e

supposed.

c e n t.;

C re d it

th e

or

so m etim es

per

o f

Use

is

th an

am o u n tin g

"T h e

m ade

I llin o is ,

la w

th e

on

ju st

D avid

g e n e ra lly

sta te s

C o m m issio n

report

D r.

show ed

m ore

K an sas,

th e

hy

d e p o sits

m ore

o f

S ta te s ,"

n a tio n a l

h a n k in g

r e t a il

in

phases

in stru m en ts

$2 4 ,9 2 9 ,6 2 0 ,
o f

used

in

190 9,

n a tio n a l

lio n e ta ry

AITU x A B O B B R S .

U n ited

o f

sim ila r

d e p o sits

FA3UKR3

in te re stin g

P aym en ts

U n iv e rsity

checks
The

in

th e

BY

Iow a,

in

was

th ose

7 2 .8

cen t.

ra tio

K ansas,

o f

The
check

74 .4

per

per

cen t.

w h ich

th ere

are

It

d e o la re d

a f fa ir s .

is

O th er
no

-2 -

by

D r.

Z in le y

sin ce

th e

p lu s
in

th at

hard

now h a v e

d e p o sit

tim e s
bank

th e

out

is

term in e
tu rn s

the

fro m

B rockton ,

p la ce s

is

th e

th e

cen t,

o f

o f

up

checks

is

th e

P aterso n

c it ie s
be




is

th e
not

so

h ig h

th e
o f

num ber
a

la rg e

proper.

o f

o f
o f

th e

4 6 .4

It

p eo p le

one
o f

to

thus

who
and

ohecks

th e

a

to

in

co n sid e re d ,
p a id

fo r

a

per­
per

th at

in

de­

a

to ­

in

o f

£ 7 8 ,3 7 3 .

num ber

o f

how ever,
is

d e a lt

A g a in ,

p eo p le
out

T ak in g

cen t,

th e

and

th ose

checks

w here

re ­

was

8 0 .7

to ta l

each

o f

d e p o sits

brought
by

o f

purchase.

sa le s

fa ct

be

It

o f
de­

L o w e ll,

show ed

per

to

th e

ta b le s.

69

in

c it ie s

o f

I.

R ive r

cen t,

ce n t,

fo r
is

P a ll

L o w e ll

order

R ive r,

d e p o sits

and

ch aracter

m ade

R.

ch ecks.

re ce iv e d

In

was

su r­

in cre ase

o f

th e

Law rence

per

per

h ig h

o f

by

gen eral

£ 7 2 ,19 8 ;

purchases

d o lla rs

use

th e

no

n o tab le

checks

F a ll

r e t a il

alo n e,

5 2 .6

d is t r ic t

llo re o ve r,
o f

are

o f

resp ect

had

m eans

degree

£ 110 ,5 8 9 ;

la rg e .

p ro p o rtio n

th ou san ds

s ig n ific a n t

show s

percen tages

o f

o f

show s

cen ter

represen t

d e p o sits

a

by

th is

then

P aw tu ck et,

in

banks

B rockton

w age-earn ers

and

and

average

£ 7 9 ,5 6 7 ;

These

w ith ,

to ta l

paym ents

checks

n a tio n a l

"been

Law rence,

J . ;

o f

£ 2 6 ,4 0 7 ;

is

o f

who

exam in atio n

lik e

U.

in

e sta b lish m e n ts.

used,

c it ie s

the

has

p ro p o rtio n

d e p o sits

t a l

it

in

in

o f

th at

th ere

th e

change

farm ers

in d u stria l

w ith

great

co n sid e ra b le

checks

th e

in

p o sits
o f

o f

a

B aterso n ,

fro m
63

in

p ro p o rtio n

w e ll

and

th e re fo re

la rg e

ra tio

retu rn s

cen tage

o f

a

18 9 0 -18 9 6 .

and

in d is tr ia l

th at

been

w age-earn ers

L ia ss.;

fo u n d

o f

in flu e n ce d

p a y -ro lls

has

acco u n ts,

b a n k in g
Among

p a id

th ere

m erch an ts

th e

o u tsid e

by

w age-earn ers

th e

o f

p la ce

th e

retu rn s

th e m se lve s.

nay

-3 -

The

m utu al

poor

nan,

banks
th e
in

in

day

savin g s

p a rtic u la rly
Law rence

in

But

ra tio

m utual
Baoh

in

savin g s

o f

th ese
In

to

w orkers

th e

week

to

th e

in

oash

banks
fro m

order
th e

en d in g

w ere

by

4 ,3 0 6

fa r

n a tio n a l

$6 0 ,19 2 ,6 4 6

w ere

percen tages

are

o f

ohecks,

cen tages
Ila n sa s,




7 3 ,3

to

up
and

cash

2 6 .7 ,

h ig h e st

in

th e

O regon,

Sou th

a g ric u ltu ra l
ilow

p ro p o rtio n

o f

3t a

Je rse y ,
wage

th e

th e
The

th e

in

th e

w ere

ch aracter

o f

The

and

in

in

fo r
re p ly

p a y -ro lls
th e

w ere

co m p iled
to

ch ecks.
la rg e st

n o tice d

made

n a tio n a l

The
p ercen tage

th at

C o lo ra d o ,

th e

per­

Idah o,

Lorth

D akota,

V 7ash in gto n .

Those

in d u stria l

P e n n sy lv a n ia ,
by

B e x ico ,

paym ents

am o u n tin g

The

A riz o n a ,

Hew

checks.

paym ents

fro m

retu rn s

be

o f

banks

o f

retu rn s

w ill

in

8 , 000 .

p a y -ro lls

it

U tah ,

paym ents

to

cen t,

$ 2 4 ,0 5 6 ,5 3 2

and

ce n t,

d e p o sits

th e

am ount

The

per

on

case

th e

in

lle vad a,

te s .

$

each

by

th at

sta te s

D akota,

per

th e

savin g s

44

wage

and

B on tan a,

B on tan a,

o f

re s p e c tiv e ly .

in

L lin n eso ta,

4

had

in

o f

re c e ip ts ,

o f

im p o rtan t.

in

to ta l

due

"banks

m utu al

fu rn ish e d

send

sh o w in g

th e

ta b le s

re s p e c tiv e ly .
m ost

are

fu rth er

th e

L o w e ll

th an

fa c to r ie s ,

was

B o ssao h u setts,
sm a ll

th en

o f

hand,

le ss

as

th e ir

o n ly

19 0 9 , w ere

banks

made

9 5 .2 ,

run

O k lah o m a,
g e n e ra l,

th e

3 iv e r ,

s t i l l

and

1 3 ,

ask in g
checks

oth er

aggregated

m ills

o f

Those

th e

F a ll

te s t

H arch

q iie stio n
in

to

But

percen tages

On

in

regarded

cen t,

ch ecks.

"bank.

banks

per

h ig h

d e p o sits

in

and

in

com m on ly

w age-earn er.

4 1.9

th ese

one

are

th e

show

q u e stio n ,

ch ecks.

h ig h

banks

and

oheoks.

sta te s

Hhode

o f

Isla n d

a re ,

in

C o n n e cticu t,
show

a

very

m
m

The
paym ents

by

am ount

chech

M assach u setts,
C o n n e cticu t,
$ 5 0 2 ,5 3 1,
c e n t.;

Hew

Je rs e y ,

th rou gh
w h ile
"bank

—

Je rse y ,
cen t,
and

in

th e

sta te

th e

th e

sen ted




in

cash

sta te s

th is

th e

D elaw are,

wage

in

the

th ere

in d u stria l

The

are

is

draw n

no

paym ent,

way
fo r

ch ecks,
c e n t.;

1 8 .3

and

am ount
hy

p a id

and

in

checks
hanks,

In

A riz o n a ,
n orth

as

in

as

com e

in d u stria l

D r.

o f

k n o w in g

Id ah o,
D akota,

The
th e

show s
has

sig n ifica n ce

sta te

lo w e st

p reced in g

Hew H a m p s h i r e ,

Hew H a m p s h i r e

hy

th e

W ash in g to n .

state

o f

6 1

in

H evada,

s ta te s ,

"b ein g

n a tio n a l

th e

h ig h e st

a g g re g a tin g

fo rm er

o n e -fo u rth .

la st-n a m e d

hero

gen eral

per

th e

IJassach u setts,

checks;

c e n t.;

Isla n d ,

p a y -ro lls

ch ecks,

H ehraska,

Tem as,

fo llo w s:

per

Rhode

10 .2

show

show n

run

2 .2

as

$ 10 ,2 5 3 ,9 2 4 ,

The

about

M ontana,

cla sse d

co n clu sio n s

th at

is

D akota,

in

w ere

o f

cen t.

hanks

cen t.

p ercen tages

hy

p a y -ro lls

course

h a lf

c e n t.;

per

percen tage

sta te s

ch ecks,

1 9 .1

sta te

per

Isla n d .

D is e a s in g

"O f

is

in

3how n

Rhode

oth er

fo llo w in g

39

hanks

Sou th

per

th e

fo rm ed

Hew Y o r k ,

$ 12 ,5 6 4 ,5 19

la tt e r

C o n n e cticu t,

its

th e

M in n e so ta,

are

c e n t.;

and

checks

3 .4

ch eck s,

and

chock

w h ich

$ 14 ,9 3 2 ,5 3 4 ,

o f

p a id

O regon,

and

o f

cash

am ount

percen tages
group,

per

retu rn s

Ean sas,

O k lah o m a,

1 .1

o f

ch ecks,

$ 2 ,3 6 3 ,0 9 2 ,

retu rn s

Iow n ,

in d u stria l

$ 2 ,14 8 ,3 6 3 ,

and

th e

th e

lo a d in g

P e n n sylva n ia ,

•i 1 8 , 3 6 9 , 7 4 6
ce n t,

reported

$ 0 ,7 6 0 ,2 3 3 ,

The

per

p a y -ro lls

th e

in

ch ecks,

per

o f

7 .2
in

th ese

o n ly
per

Hew

0 .2

per

c e n t.,

betw een .
fig u re s,

the

E in lc y :

d o u b tle ss

how

m any

s a la rie s

p eo p le
o f

are

o ffic e rs

rex^roare

in clu d e d
num ber
nent

as

o f

by

ra th e r

trail

th an

and

in

k eep in g

w ith

tio n

any

is

ce iv e
pay

them ,

th o

p la ce s

th ey

th e

th e

vo lu m e

used

in

bank

acco u n ts

way

"T h e
m ak in g
tru e

i f

u sers

p e o p le .
He




is

and

and

chocks
any

to

is

The

u su a lly

is

m eant

to

degree

by

la b o re r
th e

la rg e r

is

week,

S

3

to

in
o r,

th e

n o t.

o f

I f

th e
at

ca se s,

in to

th e

th in k

exten t
th ey

ho

how ever,

sto res

th at

to

and

in

som e

th ey

w h ich

prom ote

sw e ll

th ey

th e

th em se lve s.

or

are

use

There

o f
is

item s.

m anual

in com e

do

not

use

T h is

checks
is

la b o re rs.

th an

m any

any

cla ss

in

th is

ra te ,

by

th e

in

p ro b ab ly’

P eo p le

m anual

p ro p o rtio n a lly

an o th er
at

w age-earn ers

n e v e rth e le ss,

th at

la rg e

by

re cip ie n t

th e

m e n tio n in g .

th e

m ade

o f

w age-earn ers

w orth

propor­

th e

w age-earn ers

th at

th e

u n q u e stio n a b ly,

sa lo o n s.

th ese

th at

in

re ­

reason

degree

pay-

th ey

turn ed

to

is

sh o w in g
o f

m a jo rity

are

re ce iv e

T h is

or

la rg e

o ases,

account

fo r

no

m anual
p a id

th e

exten t

a

som e

checks

w ith

chocks

In

som e

th e

num bers
th en

in

allo w an ce

any

p o sitio n s,

by

The

a

a g ric u ltu ra l

ta b le s

draw

checks

by

oth er

h ig h .

la rg e

in

th at

to

cou n try.

th ey

th e

is

to

th e

la rg e

th e

In

done

w age-earn ers

o f

to

accu stom ed

th e

is

th em .

cashed

common b e l i e f

by

c le r ic a l
are

b i l l s ,

paym ents

w heth er

how ever,

p red o m in ates

a l l

th at

th ese

la rg e ly

m ak in g

fa ct

There

b u sin e ss

p a yin g

o f

th at

by

show ,

are

o f

paym en ts

cash

banks.

o f

se ctio n s

ch ecks.

is

are

custom

d ep o sited

own

fig u re s

cou n try

m ade

th e

m ust

be

p ro b a b ility
at

th e

cou n try
o f

The

th is

ch ecks,

th ey

h is

oashed

no

in

w ill

draw

th at

sh o w in g

re ce iv e

check

w ill

th e

e v id e n ce

rate

o f

in d u stria l

checks

tab le

traces.

w age-earn ers

check,

o f

as

as

in

la b o re rs,
w ealth y’

re sp e ct.
m on th .

Som e

s ta te s ,
th e

am ount

p e rio d
sm a ll
do

in d eed ,

w ere
to

not

he

want

w ith

m any

Uany

hanks

sm a ll.”




w h ich

now

re q u ire

each

person

lo n g e r.

The

th e

o f

such

g rain s
in

b a sis

a

sm a ll

paym en ts.

re co ive s

wages

acco u n ts.
o f

w e e k ly

hank

i3

sm a lle r

re ce iv e d ,
acco u n t.

T h is

e s p e c ia lly

p la ce s

g la d

are

to

get

so

fa r

th an

th e re fo re ,
The

statem en t,

allo w an ce ,

In

in

bank

3

are
,

how ever,
th e

a l l

i f

it

as

th ey

th e

wage

u su a lly
is

m ust

do

too

urged,
he

tak en

sm a lle r

p la ce s.

acco u n ts,

however

-2 -

th at
and
o f

la w
fo r

th o

tio n

w as,
20 7

fo r

p riv a to

p ro v isio n s

under

th o riz e d

p riv a te

£ 1 ,1 7 1 ,5 4 5

is

m uch

6,

19 0 9 ,

le ss

1 1

£ 19 0 ,0 19

bank

upon

reduoo
th e

by

covered

by

fo r

In
n o te s,

o f

tho

£ 2 ,6 7 6 ,3 5 0 ,

weeks

e n d in g

heads

o f

Scotoh

o p e ra tio n .




and

banks

system

is

tho
16 ,

lim it

u su a lly

i

o f

3

a

and

H ovora.ber

£ 9 9 ,16 4

($1,4 4 0 ,0 0 0 ).

lo c a l

had

19 0 9 ,

w ill

banks.

E n g la n d

and

to ta l

c irc u la tio n

and

au th o rize d

10 ,

11

and

e ffe c t iv e ,
th o

1 1

to

an

7/alo s
lso u o

avorago

in clu d in g

th at

($ 14 1,2 3 4 ,0 0 0 ).
e ig h t
not

jo in t-sto o k

fu lly

covorod

c irc u la tio n

was

co n fo r

o p erated

w h ich

Uovom bor

avorago
19 0 9 ,

o f

au­

o n ly

en d in g

banks

becom e

issu e s

in

£ 2 9 7 ,18 3

£ 18 ,4 5 0 ,0 0 0 ,

en d in g

are

o f

an

m ak in g

weeks

c irc u la tio n

o f

in clu d o

a c tu a lly

to ta l

c ir c u la ­

h avin g

£ 4 4 9 ,7 9 9 ,

fiv e

yot

now

o f

£ 7 2 1,7 4 6

jo in t-sto o k

Bn g la n d ,

th ere

fo r

o f

roason

la p sin g

E n gla n d

o f

a

n ote

am ount

le g a l

O ctobor

th ese

o f

o f

not

has

£ 2 8 ,9 7 1,0 4 6

S co tla n d

w h ich

1 1

th e
b a n !3

am ount

au th o rize d

m on th

o f

jEgRVK

t ir e

th e

3« u o s

m ak in g

to

iso u o c

boon

th o

w h ich

th o

th o

g o ld ,

fo r

Bard:

to

i

($16 ,9 5 6 ,0 0 0 ),

(0 2 5 ,12 3 ,0 0 0 ).

lo c a l

Bank

2ho

rem ain in g

th e

s e c u ritie s

c irc u la tio n

tho

h avin g

banks,

raorger,

fu rth e r

th e

a u th o riz e d

£ 8 ,4 7 8 ,220

regard

au th o rize d

t h is ,

p riv a to

p ro vid ed

in

o u tsid o

w ith

w ith

th an

A ll
is

la w

( $ 5 ,7 11 ,3 0 0 ) .

o n ly

rocent

s t i l l

tho

ban’s

£ 5 ,1 5 3 ,4 1 7

co n d itio n s,

banks,

o f

A

banks,

c irc u la tio n

banks,

th e

jo in t-sto c k

o f

c e rta in

jo in t-sto c k

fo r

72

£ 7 ,0 4 6 ,7 5 7
as

la rg e ly

to

by

d u rin g

issu in g

g o ld
th o

is
fo u r

($3 4 ,3 5 2 ,9 0 0 ).

th e ir

upon

bonks

tho

p o licy

and

p rin o ip lo

She

tho
o f

en­

co­

-3 -

!n
th o rise d
tio n

Ire la n d

th oro

c irc u la tio n

d u rin g

th e

o f

fo u r

al x

are

£ 6 ,3 5 4 ,4 9 4

w o o lrs

o n d in g

o f i s duo ,

banks
ana

h avin g

O ctoh or

an

16 ,

h a vin g

avorago

19 0 9 ,

o f

an

au­

c ir c u la ­

£ 7 ,8 4 0 ,3 3 3

($ 3 5 ,13 5 ,6 0 0 ).
In
P ru ssia
in ta ct

Germ any

in to

th e

under

th e

R o lch sh an k

c e rta in

hanks

o f

th o

hanks

o f

issu e ,

doned

at

once

la w

o th er

10 7 5 ,

o f
(o r

Im p erial

r e s tric tio n s

Gorm an

b e sid e s

th e

s ta te s .

tho

Bank

rig h t

o f

th o

hanks

w h ich

co n tin u e d

1 1 1 ,1 2 5 ,0 0 0

m arks

surrendered

th o

o f

issu in g
lim it
The

o f

notos

oovorod
Deoem ber

by

1 6 ,

By

grad u al

o f

is

19 0 9 ,

was

la w

ab so rp tio n

p rio r
o f

o f

May
the

had

Those

banks

su rre n d e rin g




lo n g

in

P ru ssia,

boon

regard

th o

o f

h o gin n in g
o f

o f

B a n !:,

m rk 3

and

m aria*

not
th o

m arl®
th oro

($

th o

num ber
w ith

a

to

do

fu lly

c irc u la tio n

on

3 6 9 , 6 4 4 , 000 ) .

th ose
Sw ed ish

27

p riv a te

was

mado

b a n l®

o i

fo r

th o
Boyal

banks

by

th o

bank

o f

issu e .

p ro m p tly

re d isco u n ts.

g ra d u a lly

($ 16 ,3 3 3 ,0 0 0 ).

actu al

w oro

o iro u la tio n

aban­

at

fo u r,

re q u ire d

p ro v isio n
o f

u n til
to

32

c ir c u la ­

rem ain ed

190 0

6 8 ,7 7 1,0 0 0

e x istin g

th ese

au th o rise d

B o io n sD an k ,

stro n gest

to

15

o f

le ft

tim e

in stitu tio n s

10 9 7 ,

th e ir

hut

th at

th ese

o iro u la tio n
th e

at

th o

hut

10 9 7 ,

1 2 ,

o f

n otos

Im p o ria l

to

The

Bank

G erm an y),

lssu o

1,5 5 6 ,3 9 6 ,0 0 0

w h ich

p r iv ile g e s

th o

th o

Bank,

sp e c ia l

at

w ere

th e

to

to

5 5 0 ,0 0 0 ,0 0 0

Sweden,
tho

issu e

c irc u la tio n

issu o

g o ld ,

o f

fa lle n

a u th o rise d

In
issu o .

rig h t

o f

c irc u la tio n

issu o .

($ 2 6 ,3 9 1,6 0 0 ),

had

a u th o riz e d

n ote

con vortea

Bank

Thoro
o f

th o

tio n

w h ich

The

w oro

g iv e n

re su lt

was

th e

4-

-

red u o tlo n
19 0 7,
a

o f

to

th e

10 ,4 7 8 ,2 7 3

c irc u la tio n

tio n

o f

c irc u la tio n

th o

o f

S w itz e rla n d

b u sin e ss

in

th o

num bered

about

render

a

co rta in

e n d in g

Ju n o

tra to d

in

th at

o f

th e

th o

th o

ch ise

on

A j)ril
3 1 ,

c e n tra l
th o

19 0 9 ,

bank

R e p u b lic

la tio n

o f

S co tla n d
o f




aro
o f

and

Bank

on

and

so ve ro ig n

and

was

a

lo se

its

o f

p o p u la tio n

th o
w ith

not

a

its

in

an

Bank

w h ile

d iv id o d

th at

yo ar
o f

by

about

o f

e x is tin g

R a tio n a l

w h ich
o f

have

about

m o u n ta in s,

p o p u la tio n

h avin g

do p o n d

Europe

Ita lia n

R a tio n a l

m s

in

th o

p erio d

note
fra n ­

Ban].; o n

(£ 2 5 ,6 7 0 ,0 0 0 ).

w ith
in

a

ooncon-

p riv ile g e

o f

su r­

(£ 5 ,0 18 ,0 0 0 ).

1099

in

a

bo

c irc u la tio n

e xp ira tio n

d rach m s

th o

w h io h

to

ovor

w ill

o f

absorood

w ith

w ill

issu e ,

ro q u iro d

fran cs
to

had

began

(£ -4 1,50 0 ,0 0 0 ),

pow ers

M onaco,
w h ile

p rio r

c irc u la tio n

133,0 0 0 ,0 0 0

M arin o ,

fran cs

Bank,

th o

The

M on ten egro,
San

th ose

Io n ian

so vo ro i^ i

Iro la n d ,

not

o f

o f

c irc u la tio n

c irc u la tio n

,

c ir c u la ­

Bank

q u a rte rly ,

2 6 ,0 0 0 ,0 0 0

(£ 1,9 3 0 ,0 0 0 ),

was

w ore

c irc u la tio n

19 2 0 .

o n ly

11,5 0 0 ;

co u rso ,

E n g la n d .

2 5 ,

19 0 6 ,

Tho

Sank

The

S w iss

o f

o n tiro

o n ly

Royal

banks

n otos

1

Jan u ary

d isap p e ared .

sta te

2 15 ,0 0 0 ,0 0 0

ono

Tho

n a tio n a l

th o ir

th e

on

th o

Tho
lu w

o f

x ra .s

th o

n a tio n a l

Tho

was

but

drachm as

th o

th o

whon

p r a c tic a lly

present

Bank.

banks

Bonk.

to

O ctober

19 0 9 ,

b an k s,

issu e

to

banks

(£ 5 4 ,6 0 6 ,0 0 0 ).

sln o o

19 0 7.

when

R a tio n a l

G rooco,

R a tio n a l

th o

percen tage
19 10 ,

p riv a to

crotm s

hna

o f

p rio r

lo c a l

th reo

10 ,0 0 0 ,0 0 0

30

1 5 ,

In
am ong

sum m er

2 0 ,

D ecem bor

banks

th o

(£ 4 ,9 5 1,5 0 0 ),

2 0 3 ,7 5 7 ,8 14

p riv a te

In

on

crow ns

o f

avov/od

o f

a

2 3 0 ,0 0 0 ;

w ith

n

popu­

15 ,0 0 0 .

c e n tra l

o rae rg o n o ie s

not

uj»on

bank,
th o

aro ,

Ban:

o f

May

H ISTO R Y

The
great

c rise s

pared

is

H arvard

C R ISES

m ost
o f

in

U n iv e rsity ,

ca re fu l

fin a n c ia l
se ve ra l

a

h isto ry

o f

th e

w ritte n

18 9 3 ,

m onograph

w h ich

N ATIO N AL

has

o f

and
by

ju st

P ro fesso r

th e

w h ich

P ro fesso r
been

Sprague

not

hundred

o f

even ts,

but

a u th o rita tiv e

th ose

su b je cts

by

h isto ry
yet

o f

been

No yes,

o f

D ire cto r
H ouse

o f

th e
o f

th e

Sprague

by

th e

o n ly

p resen ts

o f

th e

also

w h ich

S e cre ta rie s

en ters

o f

th e

n a tio n a l

in to

M in t,

g re ate st

th e

event

E ven in g
and

th e

account

and

th e

e x istin g

th e

norm al
•

co n d itio n

L o u is

The

the

upw ard
o f

w ere

th e

m anner

average

in

by

such

P o st,

s p e c ia lis ts

D r.

C h airm an

c r is is

A.

o f

o f

in

o f

bankers,
w h ich

P ia tt

th e

system .
the

an

and

a p p e n d ix

h ereto fo re
Treasury
as

and
•

M r*

Andrew ,

New Y o r k

•

A.

D#

now

C le a rin g

a

s lig h tly

stron ger

o f

was

in

g e n e ra l.

th at

not
The

n a tu ra lly

o f

th e

Sprague

d e cla re s

p rece d in g
and

w ill

because

He

stren gth

lo an s

190 7

P ro fesso r

o f

ten den cy
banks

th e

am ong

m on etary

by

S t.

o f

in te re st

ju d g e d




and

a

b a n k in g

in

have

c f

C o m m ittee.

th e

ease

Currency

New Y o r k

The

in

th e

pre­

W.

•

C o m p tro lle rs

the

M.

pages

a r tic le s

SYSTEM .

has

0.

19 10 .

p u b lic

made

se v e ra l

th ese

BAN K ING

"b an k in g

190 7

co ve rin g

m ost

on

THE

sum m ary

18 8 4 ,

C o m m issio n .
a n a ly s is ,

UNDER

co m p le te

18 7 3 ,

em b o d ied

M on etary

been

OF

9 ,

th at

h a lf-d o ze n
th ose
•

co n d itio n
so

m arked

in
in

$4 0 8 ,0 0 0 ,0 0 0

recen t
la ys
a l l

o f
190 7

bare

o f

d e fects

banks,

w ore

in

New Y o r k
than

Now Y o r k
o f

d ate

th e

y e a rs ,

o u tsid e

a ttra c t

as

New Y o r k

in

a
and
190 6.

in
bank

th e

-2 -

lo a n s

in

189 7

n a tio n a l

was

hanks;

n e a rly

w h ile

per

cen t,

o f

and

tru st

was

s trik in g

th e

co m p an ies,

y e a rs ,
th ose
net

fro m
o f

th e

Nov/ Y o r k

have

th e

in cre ase d

net

th e

in stitu tio n s

n a tio n a l

co m p an ies

made

d e p o sit
o f

fro m

th e

be

in

order

o f

fa ir s

at

tru st

th e

banks

in

d e p o sits

ease

190 7

w ith

s h iftin g

o f

to

alm o st

seem s

to

have

obscured

reason ,

it

sh o u ld

state

banks

o f

m ore
th e

In

ten

by
w h ile

in cre ase d
than

one-

d e p o sits

due

to

due

.grow th

th ose
o f

m illio n s
th e

hanks

New Y o r k

hanks

e t c .,

equal

o f

15

$2 13,8 0 0 ,0 0 0 ,

th e

ten s

o f

n a tio n a l

18 9 7,

w h ich

above

ala rm in g .

l i t t l e

in

th e

th e

o f

tru st

lo an s

e sse n tia l

unsound­

situ a tio n .

to

fo r

any

to

save

co n tract
fo r

th e

lo a n s,

o u tsid e
o f

th e

due

a

o f

ju st

n a tio n a l

co m p an ies,

?roxn

in

was

co n sid e re d

tru st

becom e
The

p o ssib le

n ecessary

o u tsid e

course

banks.

co m p an ies

v io u sly

had

lo an s

d e p o sits

$15 5 ,0 0 0 ,0 0 0

hanks,

ban kers'

li a b i lit i e s

I f ,
tru st

o f

th e

d e p o sits

$19 6 ,30 0 ,0 0 0 .

to

ness

hy

been

to

state




h e ld

sta te

to

The

th e

w e ll

19 0 7,

aggregate

th e

in

in cre ase

to

th e

a ll

The

due

th ird

o f

190 7

$7 5 ,9 0 0 ,0 0 0

ffom

and

to

ce n t,

in

how ever,

m ig h t

189 7

per

$7 12 ,0 0 0 ,0 0 0

to ta l.

and

d e p o sits

20

banks,

it

home

re q u ire

m oney

It

is

b an k in g

n a tio n a l

in

1906

d e cla re d ,
They

m ore

o f

w ill

cen tre

to

be

am ount

fe e l

no

fu n d s

becom es
a b le

at

it

sh o u ld e r
was
to

also
at

fo r

th e
th e

le a st

or

w ith d raw
when

n ecessary
a ll

tim e s

fro m

th ey
fo r
to

th e

w o u ld

re sp o n sib ility

n a tu ra lly

th e ir

th erefo re

to

There

to

n ecessary

o p e ra tio n s,

banks

situ a tio n .

e stim a te d

m arket.

th e

th e

lo c a l

th e

fu tu re.

th e ir

becom e

burden
elem en t

$ 3 0 0 ,0 0 0 ,0 0 0 .:
fo r
it

com e
th e

ob­

th e
when

to

a f­

d is ­

lo c a l

sh o u ld e r

at

\

lo a st
and

a

p art

also

to

o f

th e

su p p ly

T ak in g
s e lv e s ,

th e

hew

th e

C ity ,

York

over

60

fro m

on

per

cen t,

hanks.
August

2 2 ,

la rg e
it

had

tw ice

cash

to

o f

hy

as

■

cash

d e p o sits
The

s ix
o f

fro m

was

them

tru st
th e

ch aracter;

hut

to ta l

le a d in g

th e

H anover,

th ese

p ro p o rtio n a te ly

c it y

o f

o f
o f

la rg o

as

net

hanks

p rin c ip a l

o f

—

hanks
a

net

hankers*

oth er

s lig h tly

above

th e

25

hanks

h e ld

com p an ies
w ere

th oy

g reater

d id

o f

hanks

cash

assu m in g
not

on

th ose

a

a

190 7

w ere

cen t,

was

th e

o n ly

as

m ore

p ro p o rtio n

per

$14 0 ,7 0 0 ,0 0 0 .
h e ld

th an

a l l

is

in

d e p o sits

th e ir

fo r

The

la ck in g

and

a ll

hankers

d e p o sits

hanks

reserve

hy

o b lig a tio n

th ese

—

in cre ase d

$4 10 ,2 0 0 ,0 0 0 .
hankers*

a ll

hanks,

h e ld

to

o f

co n tro lle d

had

th at

co n sp icu o u sly

years

cash

hanks

hut

th e

s ix

out

th em ­

reserve

tw o -th ird s

o f

was

cash

hanks

resources

and

h o ld in g

reserves

th e

Chase

about

both

o f

hanks

le a d in g

seven

s ix

o f

In

York

th e

T h eir

o u tsid e

away.

hew

th e

hy

190 7

to ta l.

th at

th e

cen t,

$30 4 ,2 0 0 ,0 0 0

and

draw n

per

hanks

fo r

th u s

th at

hanks

18 7 3 .

la w .

few

e x p lo sive




th e

th e

d e p o sits

serves

in

net

w h ich

th at

n a tio n a l

liq u id a te d

out

P ark,

o b lig a tio n
was

re se rv e ,

been

than

q u ire d

19 0 7,

is

In

to

he

betw een

30

banks.

tw o -fifth s

resource

cash

about

th e

net

w h ich

p o in ts

F ir s t ,

o f

The

th irty -e ig h t
ce rta in

o n ly

n a tio n a l

m ay

re la tio n

Sprague

18 73

th an

w h ich

cash

th e

Com m erce,

le ss

th e

in

tho

up

P ro fesso r

co n tro lle d

lo an s

o f

re ­

$2 18 ,8 0 0 ,0 0 0

It

is

d e clared

re se rv e s,

in

re ce iv in g

r is k

p a rtic u la rly

th is
h e ld

o f

account
in

a

m ain tain

fo rm er

years#

re ­

4-

A fte r

a

and

th e

run

fo r

th o

p o w erfu l

no

u n ited

upon

an

w h atever

elem en t
cre d it

in g

a fte r

is

a d v a n ta g e ."
suspend
ever

endurance

th e

is

th e

fo u n d

th e

by

in

short

observers

d u ra tio n

o f

or

argued

th at

resu m p tio n

purpose.

K ow here

in crease
creased
every
been

in
by

a b le

th e

o f

m oney

bank

$6 3,0 0 0 ,0 0 0 ,

to

p o rio d

co rtrao t

co m p elled

o f

—
o f

thorn

to

th at

m oney

as

w e ll

" i t

m arket

dragooned
as

to

th e

tra d itio n

can

th e

stra in

th at

o f

th ere

<
eco n o m ic

b an k in g

in

was

In
lo a n s

th o
190 7

to
is

by

an

suc­

doubt
g re a tly

co n clu sio n
occurred

con trasted

o f

th e

w ith

c r is is

served
any

no

it

Is

w here

York

th e

w herever

and

u se fu l

co n sid e ra b le
th ey

$7 7 5 ,0 0 0 ,0 0 0 .
Eew

and

u n n e ce ssa rily

New Y o r k ,

stra in

was

w h ich

th ere

to

and

broken

th is

d e la ye d

$7 12 ,0 0 0 ,0 0 0

liq u id a te

o f

su sp en sio n

cou n try

gen eral

w h ich

k ittle

situ a tio n

d ep ressio n

a fte r

except

be

fa ilu re s

was

be

do­

c r is is .

can

m anagem ent

som ew h at.

a

E v id en ce

paym en ts

th e

o n ly

is

in to

o f

w h ich

th at

th at

c e r tific a te s

a

hut

p ro b ab le

lo an

fin a n c ia l

lo a n s

ce n tra l

and

in te re st

actu al

fro m

tak en ,

is

be

b u sin ess

lo an s

i t

hanks

th at

and

secured

th roughout

M organ,

issu e

M orse

d e cla red

to

to

o f

cash

is

th e

pursuance

in

num ber

it

o f

have

Ue?i Y o r k .

In

n r.fio rn .1

p revio u s

situ a tio n




18 9 3.

ad d itio n a l

in

fa ilu re

been
our

gen eral

gen eral

18 73

th e

th e

P.

sh o u ld

expressed

o f

lim ite d

in

own

banks

is

J.

d e cid e d
was

th e

have

w eakness

th e

o ith o r

th at

th e ir

i t

o f

se rio u sn e ss
by

w o u ld

was

o p in io n

exaggerated

M r.

w eakness

in.

it

source

The
th at

a l l

paym en ts,

presen t

c e ss fu l

o f

o f

o f

co m p an ies,

in stitu tio n s

When

cash

tru st

in flu e n ce

in flu e n tia l
what

account

ce rta in

actio n

c e rta in ly

liv e ly

banks

tru st

in ­
In
had

com pany

p o ssib le

and

5-

th e

o u tsid e

banks

One
e x p e rie n ce s
lo an s.
count
a ll

was

paper
th at

$

a

o f

a

o f

to ta l

a

tho

banks
lo a n

is

The

w o u ld

lo an s

o f

p o sitio n

to

ju st

o f

lo an

th e

—•

The

was
th e

th e

in

c a ll

lo an s

ac­

reduced
tim e

at

lo a n

ven tu red

to

p ap er,

is
an

em er­

is

under

m eet

than

it

i t

w o u ld

not

be

in

per

25

on

o p in io n

p o sitio n

cou rse,

c a ll

w h ich

nam o.

from

liq u id n e ss

lo an ,

co m m ercial

above

o f

§ 6 3,0 0 0 ,0 0 0

b e tte r

o f

Sprague

th en

cen t,

re q u ire m e n t

in

tim e s.
In

P ro fe sso r

h is

reserve

fin a l

Sprague

"So m ew h ere
o f

m arket.
m ands

o f

firm
a

upon

th ou gh ,

norm al

absence

co m m ercial

in

circu m sta n ce s,
alo n g

P ro fesso r

k in d

or

e x istin g

slid e

by

th e

o n ly

be

w ere

course.

in crease

in d iv id u a l

bank

its

sam e

draw n

v a rie tie s

sin g le

a ll

th e

le sso n s

n a tio n a l

How Y o r k
i f

th e

5 4 , 000 , 000 #

one

w ith

gency

o f

Out
fo r

o f

fo llo w e d

on

th e

le sso n s

o f

th e

c r is is ,

d e cla re s:

in

th e

le n d in g
A b ility

o f

co n clu sio n s

b an k in g

pow er,
in

d e p o sito rs

system

o f

a

and

it

sh o u ld

Hew Y o r k

to

in crease

fo r

m oney

w o u ld

cou n try

be

have

fo u n d
lo a n s

a lla ye d

in
and

th ere
its
to

sh o u ld
ce n tra l

m eet

every

th e

p an ic

be

a

m oney
de­

sin o e

th e

such

re ­

9

e sta b lish m e n t
serve
T h is

power

and

reader

re a d in e ss




m ay

th e

n a tio n a l

d o u b tle ss

in v e stig a tio n

causes
th e

c f

w ill

be

have

consequences

o f

th e

o n ly

to

need

use

it

not
in

b an k in g
m ade

served

its

fu tu re

in

system .
a

its

absence

o f

th is

num ber

P ro visio n
o f

pur-n ose
in

tho

reserve

e m e rg e n c ie s."

d iffe re n t
i f

p ast
pow er,

fo r

w ays.

in.

sh o w in g

it

b rin g s

but

also

th e
home
o f

to

th e




\

♦
V
-

H
\/

H W GERM
O
A13Y ATTAUSED A OSFTRAL BAEK.

An
to il f i e d

th e

account
note

o f

g re a te r

co h esio n

a fte r

th e

war

w ith

v/h ich

has

Ju st

in

been
T h is

m onograph

th e

fir s t

tw e n ty-fiv e

th e

e m p ire

in

th e

year

fo u n d a tio n

o f

th e

e m p ire

p u b lish e d

re g u la tio n s

sta tu te s

o f

w h ich

stated

in

th e

num ber

o f

th ese

ly

rig h t

th e

n otes

not

p o ssib le

in to

retu rn ed

fo r

o n ly

la rg e

th e

d iffe re n t

am ounts

ta le r .

S in o e

o f

sm a ll

th e

m any

banks

lie

also

engaged

bankB

e x iste d
banks

by

concerned
—

so

d id
to

not

as

but
to

o f

a

note

exten t

in to

th e

Germ any

ce n tra l

issu e ,

one

o f

b efo re

fo r

th at

th e

w h ich
and

a

fo r

banks

is

e x te n sive ­
as

m any

la rg e r

sum s

am oun ts,

issu e d

la rg e

lo w

as

one

fre q u e n tly

in ­

d e n o m in atio n

as

cover

b u sin e ss

It

sm a lle r

a ls o ,

was

th e

la rg o

m ost

p u ttin g

o f
fo r

sta te s

fo r

th e

bank

an o th er.

n otes

issu e

lio n etary

co m p le tio n

in

th ose

m atters

E n g lish

a

w ith

th e

b rin g in g

m onographs

as

s u ffic ie n t
in

th e

u tiliz in g

i s ,

o f

n a tio n a l

C ongress

S in ce

p ro vid e

some

fro m

w ith

o ften

down

co n tro l

th e

vario u s

to

th at

govern m en ts,
n o tes,

o f

th e

o f

upon

e x iste n ce

c irc u la tio n .

le g a l

ad equate,

its

A m p ire

p o lit ic a l

one

R eich sb an k

su b m itted

paym ent

as

by

Germ an

system

tra n sla tio n

made

n o tes,

th e

in

co n sid e ra b ly

Ju st
w ere

as

a

th e

w e ll

fo rth

Ih ere

been

issu in g

as

th irty -o n e

d iffe re d

not

w ere

o f

o f

C ongress

th e

190 0 .

had

banks

to

w h ich

part

set

is

by

years

docum ent

o f

is

su b m itted

stu d y

a

in

fin a n c ia l

Stan ce,

e la b o ra te

v a rio u s

m anner

c ir c u la t i o n 's

about

C o m m issio n .

th e

fo r

w h ich

n o tes,

tie d

up

2 -

p erm an en tly
th e

th o ir

l i a b i lit i e s

fa ilin g

due

o f

a t

tem p ted
th e
w ere
fo r

not
a ll

fo r

o f

th e

co n sist

banks

p ro h ib itiv e

s t r ic t ly

T h is

o f

m as

not

proper

o b lig a tio n s,

im p o ssib ility

Germ an

banks

p u b lic

c a p ita l.

such

fo r

as

banks,

n o tes,

tim e s.

to

th rou gh

n o tes

w h ich

a l l

O w in g
re g u la tio n s

w o rk in g

tre a su rie s

issu e ,

b rin g in g
se v e ra l

m easures

to

by

lice n sed
observed

o f

o f

in

gen eral

and

w ore

o iit

regarded

o f

but
by

sta te s

th e ir

Ih ese

tra d e ,

u n ifo rm

Germ an

s ta te s .

oth er

keep

about

a t ­

te r r ito r y

p ro h ib itio n s

w ere

a u th o rita tiv e

th e

p u b lic

o f

peace

w ith

o f

m on etary

as

great

in co n v e n ie n ce s.
Im m ed iately
th e

Germ an

refo rm .
be

put

G overnm ent
It

in

was

T h is

was

tain e d

also

som e

governm ent
n o tes.

"A ll
w ith d raw n

th e

new
in

th e

b rin g

th e

la tte r

by

in

o f

p ro vid in g
and

Ju ly

in

and

b an k in g

system

th e

9 ,

itran ce,

co u ld

co in a g e

18 7 3 ,

s y s ­

w h ich

th e

th e

su b stitu tio n

o f

bank­

stan d ard

to

be

on

th e

im p e ria l

o f

p ro vid e d :

based

w ith d raw al

con­

fo r

was

100

rem ain

act

it

than

ard

b an k in g

u n ifo rm ity

sta te s

18 76 .

le ss

u n ifo rm

p o in t

1 ,

not

a

the

va rio u s

by

Jan u ary

q u e stio n

about

re g u la tio n s

not

o f




to

co n clu sio n

b efo re

b an k -n o tes

am ounts
m ay

up

acco m p lish e d

n otes

Upon

took

th e

n e ce ssary,

o p e ra tio n ,

tem .

a fte r

c irc u la tio n

A fte r
m arks
or

be

and

th is

date

based

iss u e d ."

on

o n ly
th e

are

n otes

fo r

im p e ria l

stan d ­

v» :

-3 -

In

resp ect

d iffic u lt ie s
gard

to

th e

d iffe re n t
scrib e d

w o u ld
to

u n ific a tio n

o f

n otes
How

possessed

th e

refo rm

m onograph

issu e d

d ire ct

a b o litio n

o f

was

to

cause

decree

th e

d iffic u lt y

w ith o u t

u n ifo rm

banks

th e ir

n ote
was

in ju rin g

out

to

tho

th e

p riv ile g e s

hy

th e

as

note

p riv ile g e s

w as,

th e

d u ly

w orked

q u e stio n .

tho

and

o f

a

to

The

o f

p ro vid e

th e

is

ffo m
o n ly

de­

tho
p o ssib le

n atu re,

w h ich

branches,

ad equate

p riv ile g e s

re ­

o f

out

th e ir

s u ffic ie n tly

acq u ire d

w ith

fo llo w s:

gen eral

num ber

m easures

r ig h tfu lly

system ,

banks

H o ich sb a n k

re g u la tio n s

th e

e x istin g

th e

o f

lim it

m ake

b an k in g

g ra d tia lly

by

c ir c u la tio n ,

to

th e

was

th ese

co n sid e re d

o f

fro m

a r is in g

th e

reduce

fh e

issu e

b e g in n in g ,

course

th e

en co u n tered

s ta te s .

in

"A
very

w ere

to

cover,

e ffe c tiv e
o f

th e

vario u s

banks.
"P u b lic
how ever,
to

such

o f

favo re d

issu e

th at

o p in io n
th e

m easures.
had

th ey

to

a l l,

su p e rv ise

and

p o in t

o f

v ie w

cu rre n cie s.




fu lfille d

The

o n ly

d isp e n sa b le ,

o f

18 57

and

to

than

re g u la te
th o

home

co n v ictio n

fro m

and

o f

c ris e s

s a t is fy

p u b lic

th e

one

sid e

g ain e d
th at
a

as

sid e

In

bank

be

lim ite d

th ese

th at

hanks

was

cla im s,

have,

re la tio n
task s

im ­

above

c irc u la tio n ,

th ese

ce n tra liz e d

c e n tra l

b a n k in g ,

shown

th ey

m on etary

th at

in

cla im s fo r c r e d it ;

w ith

as

not

had

Thus

w e ll

ground
a

m ust

p riv a te

e n tire

trad e

th at

by

experts

1866

in te re s t.
th e

ce n tre ,

th erefo re

o f

refo rm

ra th e r,

in

m a jo rity

b a n k in g

f u l f i l

fu n ctio n s

th e

great

th at

d u tie s

po rtan t
to

th e

vie w
The

oth er

have

and

to

fro m

fo re im

co u ld

be

m anagem ent

was

in ­

n e ce ssary,

w h ich

-4 -

o ith e r
th at

stan d s

it

alo n o

e x e rcise s

"T h ese
th e

yea r

o f

1866

tra n sa ctio n s
lim ite d

or

a

a

a

a c t iv it y

o f

th is

P ru ssia .

It

o f

»!Ehe

o on tre,

verge;

a

s is t

in

lo o k ed
in g

upon

.as

th e

fu rth e r

.

a l l

and

th e

co n d itio n s

q u e stio n ;

n p o ria l
ready




o n ly

in stitu tio n

h e ld

fo r

th e

in

th e

to

been

o f

issu e

o f

cash

oth er

th us

eco n o m ic

o f

la t t e r
and

banks

and

co n fin ed

rig h t

fu lfille d

The

a l l

n a tio n a l

th e

o f

and

o f

and

th e

so

fo r

had

in

cre d it

o f

issu e

refu sed

e ith e r

th e ir

a f fa ir s .

c h ie fly

to

She

th e

e sta b lish in g

cre d it

h ig h e st
th e

step

to

th en

k in gd o m

branches

g re a te r

Germ an
in

banks
on

the

con­

system ,

issu e

and

hand,

u p h o ld ,

and

was

hank­

co u ld

o th er

a

con­

sh o u ld

m on etary
o f

ou t,

e x is tin g ,

o f

w h ich

co u ld

m on etary

Germ an

w ith
o f

th o

fo u n d a tio n

th is
th e

co n sid e re d .

p art

o f

re q u ire d

o n ly

soem ou
d e ve lo p

co n stitu tio n .

tra n sfo rm a tio n
ho

du ty

c a rry

b an k in g

E m p ire

tra n sa ctio n s

e x istin g

aooordanoo

co u ld

Germ an

H e io h sb an k ,

n ecessary

"U n d er

the

banks

B a n !:.

purchases

in

fin a l

The

m o n etary

H e io h sb an k

num ber

th e

re g u la tio n

new

new

support

re g u la tin g

th o

t ir e ly

h ith e rto

P ru ssia n

system

cash

n atu ral

fo rce

oth er

.

abu ses.

liv in g

had

how ever,

have

a l l

in flu e n ce .

b i l l

H e io h sb a n k ,

th e

e x is tin g

to

not

econ om ic

The

lim it

a

moment
w as,

.

su p e rv isin g

refo rm .

be

d id

There

G erran

firm

th e ir

bank

u n ifo rm

th e

when

c r i t i c a l

P ru ssia .

common

a

tin e

suspended

at

o u tsid e

by

affo rd ed
at

su rpasses

fu n ctio n s

P ru ssia

se rv io e s

o f

o lso

d o m in a tin g

im p o rtan t

k in gd o m

th e

or

Germ any

id o a

was

P ru ssia n
The

th e

o f

an

q u ito
Banx

P ru ssian
p o sitio n

en­

out

in to

o f
an

Bank

a l ­

w h ich

th e

A

:

-5 -

new
In

R e ich sb an k
a d d itio n

was
th e

to

to

P ru ssian

"C o n sid e ra b le
co n versio n
la ye d
in

th e

Ju ly ,

fo r

th e

o f

th e

tin e

la id

b e in g

th e

id ea

re s tric te d

th e

.w ith d ra w a l
E m p ire
tio n .
On

th e ir

to

have

The

llo vem b o r
"A t

th e

th at

a

m ent

o f

la rg e
a

She

s ittin g

to

't h a t

d e sira b le

"A s




to

fo r

b ill

th e

on

o f

re a d in g

H e ich sb an k ,

and

th ese

o f

a

bank

b i l l .

Bundesrat
and

was

re g u la tio n

issu in g
hand

fo rw ard ed

Im p o ssib le .
way

th ose

b i l l

R eio h sb an k

th e

o f

w h ich

abandoned

con ten t

o f

issu e
own

180 6,

announce

a

At

but

few

sta te

th is

th orou gh

banks

w h ich

th e ir

n o tes.

w ith

w ith

e x istin g

1 ,

in

de­

o f

banks

th e

F in a lly ,

o f

Jan u ary

free

A

in

te r r ito r y

th is

was

been

stood

th e

fo rcin g

co u ld ,

have

H e ich sb an k ,

th e

passed

an

ce ssio n s

o f
as

b i l l

(N ovem ber

th e

e stab lish m e n t

tl»

a

e n tire ly

fir s t

R e ich sb an k

fir s t

b ill

an

m a jo rity

refo rm .

4 ,

cla u se

p riv ile g e

th e

very

o f

G erm any.

d id

to
th e

d ate

th e

re o rg a n isa ­

a lte ra tio n s .

to

th e

R e ich stag .

(N ovem ber

16 ,

10 74)

it

was

c le a r

w .» i

J

in g

a

Bundesrat
5th

b efo re

p rin cip le s

B undesrat

o f

was

a

was

be

th at

in to

b i l l

a

added

agree

Bank

o f

how ever,

in tro d u ctio n

It
to

w o u ld

and

o f

w ish

Bank

w h o le

out

g u id in g

not

th e

d iff ic u lt ie s ,

fo rm u la tin g
issu e .

i'o r

P ru ssian

w o rk in g
18 74 ,

h o ld

a

and

a

H ouse

2 1 ,

1074)

does

th o

o f

th is

E m p ire

th e

co n d itio n

fo r

a

co m m itte e ,

co n sid e r
been

th e

d e cisio n
by

e s ta b lis h ­

to

has
o f

im m ed iate

re so lv e d

not

d e cisio n

th e

p re lim in a ry

re fe rre d

o rg a n izatio n

outcom e

regarded

n ecessary

was

co m m ittee
u n til

to

th e

at
a

once,

w h ich
by

a

d iscu ssio n

a rriv e d

at

in

its

vo te
o f

bank­

o f

th e

re g ard in g

13
bank

th e

R e ic h sb a n k .'
th e

d e lib e ra tio n s

P ru ssian

Bank

le d

to

co n co m in g
th e

d e sire d

*

—
6

r e s u lt.

P ru ssia

in ve ste d
m arks)
tio n
to

o f

o f

be

c a p ita l
th e

th e

a

bank,

th is

o f

In
avo id

to

d e cid e d

upon

cre a tio n
by

a fte r
th e

th e

th e

Bank

s t i l l

th e

A ct

in g




o f

th e

its

share

o f

he l o n g i n g

U m p ire

P ru ssia

d e cid e d

th e

w ere

to
in

a ffe c te d

avo id

re a d in g

th e
a

fo rm a lly

to

w ith d raw al

it

o f

its

(9 ,0 0 0 ,0 0 0
on

P ru ssian

accep ted

tran sfo rm
th e

to

b i l l

th e

d isso lu ­

Sank

any

by

th e

th e

w h ich

was

B u n d esrat,

P ru ssia n

a ffe c tin g

a p p re ciab le

in tro d u ctio n

m em ber

o f

as

h is

own

She

b il l

B u n desrat.

R eich sb an k
and,

and

th ird

U & rcli

14 ,

the

b a n k in g

purpose

and

m onograph

Pranz,

p assage:

\

o f

to

th e

th e

Bank

in to

e x istin g

exten t

by

th e

R eich sb an k .

to

th e

second

an o th er

b 'j R o b e r t

th e

co m m itte e

governs

in

not

fir s t

by

The
up

o f

le g a lly

a fte r

R e ic h sb a n k ."

was

in tro d u ce

o f

a

read y,

n a rk sjan d

re g u la tio n s

w ere

order

an o th er

in d u ced

it

She

issu e

e sta b lish m e n t

cede

p ro p o sa ls

R e ich sb an k .

banks

fo n d

in to

b a sis

i t s e l f

5 ,7 2 0 ,4 0 0

to

tran sfo rm ed

on

both

o f

reserve

She
and

d e cla re d

e d ito r

was

accepted

la te r ,

a

now

R e ich stag

m o tio n
th u s

th e

w ith o u t

R e ich stag

re a d in g s,

and

the

w h ich

w ith

act

som e

p o licy

o f

th e

o f

th e

new

to
was

m o d ifica tio n s

in

was

by

th e

changes

fu ll

se ssio n

p u b lish e d

as

m o d ifica tio n s,

U m p ire.

re su lt

and

co m m ittee

ra d ic a l

th e

18 7 5 ,

b il l

su p p lem en ted

by

prepared
o f

th e

o f

"B o r

fo r

th e

D eutsch e

le g is la tio n

R a tio n a l

is

Ik in etary

O ek o n o n ist,"

in

summed
C o m m issio n

th e

fo llo w ­

"Sh e
banks

was

th rou gh

p red o m in an ce

th e

vo lu m e

co n sid e ra b ly
se q u e n tly

was

co n tin g e n ts




th e

o f

to

th e

H o iclisb a n k

th rou gh

secured

o f

its

co n sid e ra b ly

o f

its

am ount

o f

in crease

th e

n ote

ta x -fre e
a l l

th e

s t i l l

banks

note

th e

p riv a te

la rg e r

m ig h t

w h ich

co n tin g e n ts,

th rough

th e

n ote

c a p ita l,

co n tin g e n t,

o th er

m ore

w h ich

over

exceeded

and

w h ich

a ccre tio n

renounce

th e ir

fu rth er

o f

sub­

the

rig h ts

o f


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102