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From General le.fi.cienc,; Act, of —arc}1 4, 1909. 28 [Puti. 327.] LEGISLATIVE. That the members of the National Monetary Commission, who were appointed on the thirtieth day of May, nineteen hundred and eight, under the provisions of section seventeen of the Act entitled "An Act to amend the national banking laws," approved May thiitieth, nineteen hundred and eight, shall continue to constitute the National Monetary Commission until the final report of said commission shall be made to Congress; and said National Monetary Commission are authorized to pay to such of its members as are not at the time in the public service and receiving a salary from the Government, a salary equal to that to which said members would be entitled if they were members of the Senate or House of Representatives. All Acts or parts of Acts inconsistent with this provision are hereby repealed. PROCEEDINGS OF THE NATIONAL 1‘10NETAEY COD:MISSION. Hotel Plaza, New York 'ity, August 17, 1909. A subcommittee of the 7aticna1 Monetary Commission, consisting of Senators Aldrich (Chairman), Burrows and Daniel, Representatives Vreeland and Weeks, and Mr. Bon3inge, were in sessicn at The Hotel Plaza, New York City, in the -orning and afternoon of Monday, Aur;ust 16, and in the -norning of Tuesday, August 17. Professor A. P. Andrew submitted in proof form the follo.:ing paperB and documents, which have been under preparation since the last meeting of the Commission. These papers were examined and discussed by the subcommittee, and the Secretary was directed to furnish a set of these documents in proof to each member of the Commission, to be regarded as corp fidential until published in final form by the Comnission. The list is as follows: PUBLICATION'S OF TIE NATIONAL 1101TARY COLT,ISSION ************* I - MISCFJ.T-A S Interviews on the Banking and Currency systems of :ngland, France, Germany and (430 pages) Switzerland. The Public Debts of Great Britain, Germany and France, by Francis W. Hirst. (Galley proof, 19 pages) (43 pages) Articles: /The Discount System in Europe, by Paal M. Warburg. (18 pages) p/Bank Acceptances, by Lawrence Lorton Jacobs. II - MUTED STATES (250 pages) Statistics for the United States, 1867-1900. Digest of State Banking Laws, by S. A. Welldon. (Galley proof, rticle: History of the National Bank currency, by Alexander Dana (Galley proof, 6 pages) it - alaaD4 III /The History of Bankin pages) Canada, by Roland Morton Breckenridge. (310 pages) r'LA IV / V The English Bafiking System, with a chapter on the London Stock Exchanse, (150 pages) by Hartley Withers. Statistics for Great Britain, 1867-1908. Prepared by a. H. laglis Palgrave, ;Galley proor, 67 pages) F.R.S., and "The Eccmomist". V - PRANCE Evolution of Credit and Banks in France, from the founding of the (271 pages) until th- present time, by Andre Liesse. The Bank of France in its relations to National and Int.xnational (Galley proof, 54 pages) Maurice Patron, statistics for France, furnished by the Credit Lyonnais. (Galley The History and Lethods of the Paris Bourse, by E.Vidal. (Galley VI Bank of France Credit, by proof, 26 pagesj proof, 65 pages) - The :ational Bank e Belgium, by Charles .,. Conant. ' (2.73 ,ages) VII - G;aiMANY The Great German Banks and their Concentration in connection with the Economic Development of Germany, by Dr. J. Riesser. (Galley proof, 68 pages) /The Reiclasbank, 1876-1900. (Jubilaumsschrift) (355 pk;es) (Galley proof, 56 pages) Statistics for Germany. German Imperial Banking Laws, edited by Dr. R. Koch. (Galley proof, 72 pages; Iliscellaneons Arti(;7es on German Banking. (Coverin.: the organization of credit, directors' fees, the land mork:e associations, the savings banks, (Galley proof, 93 pages) the co-operative societies, etc.) In Re: Renewal of Reichsbank Charter. (Including articles covering the renewal or the charter and discussions of this zIlbjeet in bankers' conveutions and elsewhere, with a draft of the bill) (Galley proof, 93 pages) /The Bank Inquiry of 1908: Stenographic ReL orts. (About 9C,0 pages) 7', :! Jelected Docxnents on Bours, Legislatere.*. (Galley proof, 3: pages) VIII - SW;TzERLA7p The Swiss Banking Law, by Dr. Julius Landmaan. (238 rages) V/ ************ , Development of the Geran BanlAng system, by Robert Franz. (Gall, y proof, 37 pages; ••• A set of 24 Traphic charts, prepared under the direcicn of Professor A. P. Andrew. After a full discssion of ulans for the orosecution of the woak of the Commission, the following action was tak r: A subcommittee, consisting of Yr. Vreeland (ChaLnan), Senators Burrows and Daniel, Representative ,_eeks and Mr. Bonynge, were apoointed to visit Canada some time during the month of Se'tember to r- ake a personal inliesti7ation of such I features of t.'?e Canadian system as had not already been covered by the investigations of the Commssion. It was decided that a meeting of the full Commission should be held in Was"rlinp-ton about the middle of Octobe:., the exact date to be fixed by the Chairman, and tat at meet- ing the subcommittee would recomend that the Commission should hold rieetings and conduct hearings in different sections of this country during the late fall and winter. ''he following statement of the proceedings of the sessions of the subcommittee was prepared by the Chairman and given to the press: • 0 . A subcommittee of the National Monetary Commission have been in session at the Hotel Plaza for two days. The meet- ing was for the purpose of arranging for the work of the members of the Commission during the sq ler , prior to the general meeting of the Commission which will take place in /7 I Washington about the middle of October. CA-'11f1 A Asopapiimirogailo number of papers and statistics, which have been prepared under the direction of Professor A. P. Andrew, were submitted to the Commission in proof. It is expected that the reports and statistics with reference to the monetary systems which are under investigation by the Commission will be completed and ready for publication at the October meeting. A subcorTnittee lov-,s appointed to make a personal exam- ination in Canada of such features of the Canadian system as have not already been covered by the the Commission. investigations of The subcommittee will consist of Mr. Vreeland chai rlan) Senators Burrows and Daniel, Representative 7 Weeks and Mr. Bohynge. The subcommittee will, visit Canada some time during the 1Jonth of Septe Aber. The chairman of the Commission, who is to sail for Europe next week, will complete arrange•lents heretofore made with reference to the monetary system of Italy and will ar- range for additional information relating to European *stems in cases where the statements already submitted to the Comttcc • ev• mission szam-40. fail to cover all the qatt.Liaas required. CI ) C 64, e ) ' t Ie "tatir-T--ete‘ x j. tfr4 t, Aeir014 e, At 12 o'clock, noon, on Tuesday, Aun;ust 17 1 19091 the subcommittee adjourned. PROCEEDINGS OF THE NATIONAL LIONITARY COMMISSION. Senate Office Building, Washington,D.C., November 20, 1909. The Commission met at 11 o'clock a.m., pursuant to the call of the Chairman. ?resent: Messrs. Aldrich, (Chairman) Burrows, Teller, Money, Bailey, Vreeland, OvenAreet, Burton, Weeks, Bonynge, Padgett, and Burgess. The Chairman laid before the members of the commission a list of the proposed publications of the Commission (cop, of which is attached to these proceedings) together with such of the documents themselves as have been put in type. The entire se:Lsion of the Commission was occupied in a discussion of the proper method of issuing and distributing the proposed publications, the principal point under discussion being Whether the distribution should be undertaken entirel:, by the Commission itself or whether it should be done under the authority and direction of Congress. The Chairman suggested that, in his opinion, it was the first Juty of the Commission to get this literature in readiness and have it issued and distributed diner b, the Commission or Congress; then, after the public had had an opportunity to digest it, to find out the sentiment of the people throtighout the country by hearings, etc., and that not until after this had been thoroughly accomplished shoulc, the Commission take up the actual work of its report. A recess was taken from 1 until 2:30 p.m. After further discussion in tl-te afternoon session on the same subject, the Commission adjourned at 4 o'clock to meet Monday morning, the 22nd instant, at 11 o'clock. PUBLICATIONS IN COURSE OF PREPARATION FOR THE NATIONAL MONETARY COMMISSION NOVEMBER 1, 1909 Washing-ton : Government Printing,()tfice : 1909 • NATIONAL MONETARY COMMISSION. NELSON W. ALDRICH, Rhode Island, Chairman EDWARD Il VREELAND, New York, Vice-Chairman. JULIUS C. ItuRRows, Michigan. JEssE OVERSTREET, Indiana. EUGENE I IALE, Maine. JOHN W. WEEKS, Massachusetts. Putt.ANDER C. KNOX, Pennsylvania. ROIART THEoDORE l. BURTON, Ohio. SYLVESTER C. SMITH, California. BotivNGE, Colorado JOHN W. DANIEL, Virginia. LEMUEL P. PADGE'rr, Tennessee. HENRY M. TELLER, Colorado. GEORGE V. BURGESS, Texas. HERNANDO D. MONEY, Mississippi. ARStCNE P. PUJO, Louisiana. josErtt W. ItAiLEv, Texas. ARTHUR B. SHELTON, Secretary. A. PIATT ANDREW, A.csistarli to 3 • Commission. • PUBLICATIONS OF THE NATIONAL MONETARY COMMISSION: 1.—MISCELLANEOUS INTERVIEWS ON THE BANKING AND CURRENCY SYSTEMS OF ENGLAND, FRANCE, GERMANY, SWITZERLAND, AND ITALY.(a (Mold 450 pages; in press.) ) Contains interviews held in Europe by delegates of the National Monetary Commission with representatives of the leadin g banks and financial institutions of England, France, Germa ny, Switzerland, and Italy. THE CREDIT OF NATIONS. Francis W. Hirst, editor of The Economist. (About ioo pages; in press.) By Traces the growth of public debts in England, France , Germany, and the United States during recent decade s and examines the influences affecting the values of gover nment bonds in the several countries. .1 FISCAL SYSTEMS OF ENGLAND, FRANCE, GERMANY, AND THE UNITED STATES. By J. 0. Manson, Chief;of Division of Accounts, Redemption, and Issues. (About 86 pages; in press.) A report upon the manner of receiving, handling, and disbur sing public moneys in the several countries, based upon specia l investigations made in Europe. ARTICLES. THE DISCOUNT SYSTEM IN EUROPE. By Paul M. War- • burg. (43 pages; in press.) A comparison of the organization of the discount market in the leading countries of Europe, with methods pursued in this country (a) See Appendix A. National Monctary Commission BANK ACCEPTANCES. By Lawrence Merton Jacobs. (18 pages; in press.) • A description of the European practice of borrowing by means of bank acceptances and a critical analysis of its effects. II. An examination of all available materials concerning the organization, practices, and history of the First United States Bank. STATISTICS FUR TIlE tNITED STATES, 1867-1909. (About 250 pages; in pr('ss.) Tim SECOND BANK OF THE UNITED STATES. By Dr. Davis Contains general statistics illustrating the growth of populat ion, wealth, business, and commerce, statistics of banks and banking, of money, gold supply, foreign and domestic exchange, government receipts and expenditures, bond issues and bond quotations, government cash balances, gold holdings, and deposits with the banks. These figures have been collected from different departments of the Government, from state bank supervisors, and managers of clearing houses, and from various banks and financial journals. R. Dewey, of the Massachusetts Institute of Technology. (About 150 pages; in press.) An account of the organization, development, and experiences of the Second United States Bank. HISTORY OF STATE BANKS BEFORE THE CIVIL WAR. By Dr. Davis R. Dewey. (In preparation.) Traces from original documents the organization and growth of the banking systems of the several States in the period when note issue was allowed. SPECIAL REPORT nwM TIIE BANKS OF THE UNITED STATES, 909.a Compiled by Chas. A. Stewart. (About 50 pages; in press.) THE SAFETY-FUND BANKING SYSTEM IN NEW YORK STATE FROM 1829 TO 1866. By Dr. Robert E. Chaddock, of the University of Pennsylvania. (170 pages; in press.) Contains tables based on special reports obtained for the Monetary Commission by the Comptroller of the Currency and the state bank supervisors from 22,491 banks of the United States, including national, state, savings, and private banks and loan and trust companies, showing their condition at the close of business April 28, 1909, willi the number of depositors, rates of interest paid upon various classes of deposits, etc. A study from original sources of the experiences of the New York banks under the system of mutual guaranties. THE ORIGIN OF THE NATIONAL BANKING SYSTEM. By Andrew MacFarland Davis. (In preparation.) LAWS OF THE UNITED STATES CONCERNING MONEY,BANKING, AND LOANS. Compiled by A. T. Huntington, Chief of Division of Loans and Currency, United States Treasury. (In preparation.) A study from original manuscripts of the motives which led to the creation of the national bank system and which influenced its form. Contains all laws pertinent to these subjects, front 1789 down to the present tune. A classified summary of the laws actually current in the various States with regard to state banks, trust companies,and savings banks. a See Appendix B: Summary of special rei)orts. 6 FIRST BANK OF THE UNITED STATES. By Dr. J. T. Holdsworth, of the University of Pittsburg. (147 pages; in press.) UNITED STATES. DIGEST OF STATE BANKING LAWS. By Samuel A.\\Tendon. (About Soo pages in press.) ; National Monetary Commission HISTORY OF CRISES UNDER THE NATIONAL BANKING SYSTEM. By Dr. 0. M. W. Sprague, of Harvard University. (In preparation.) • Traces the experiences of the banks during the several periods of panic and general suspension since the organization ot t he national banking system. National Mon ct a ry National Monetary Commission HISTORY OF THE NATIONAL BANK CURRENCY. By A. D. Noyes, financial editor of the New York Evening Post. (In press.) THE USE OF CREDIT INSTRUMENTS IN PAYMENTS IN THE UNITED STATES. By Dr. David Kinky, of the University of Illinois. (222 pages; in press.) • STATISTICS FOR GREAT BRITAIN, 1867-1908. Prepared by Sir R. H. Inglis Palgrave, F. R. S. and F. W. Hirst, editor of the London Economist. (About 170 pages; in press.) A study of the growth of the independent treasury from its origin down to the present day. Tables covering the Bank of England statements since 1844 and statistics for the joint stock and other banks during the last thirty SEASONAL VARIATIONS IN THE DEMANDS FOR CURRENCY AND CAPITAL. By Dr. Edwin W. Kemmerer, of Cornell University. (In preparation.) years, as well as general tables covering the growth of population, business, wealth, and commerce, the money supply, rates of discount and foreign exchange, etc., since 1867. A statistical study partially based upon special reports obtaine d by the Commission from the clearing-house associations of the leading cities. THE ENGLISH BANKING SYSTEM. By Hartley Withers, financial editor of The London Times. (150 pages;in press.) THE FOREIGN BALANCE OF THE UNITED STATES. By John E.Gardin,vice-president of the National City Bank, New York. (In preparation.) Examines banking practices in England and Scotland and includes an account of the London Stock Exchange. HIST()RY OF BANKING IN ENGLAND. By H. S. Foxwell, of the London School of Economics. (In preparation.) An analysis of the balance of indebtedness of the United States (luring the last thirty years. A brief survey of tile development of kinking in England. CLEARING HOUSE METHODS AND PRACTICES. By J. G. Cannon, vice-president of the Fourth National Bank, New York. (In preparation.) ARTICLES. LONDON BANKERS' CLEARING HOUSE. By Robert M. Holland, Honorable Secretary of 11w Clearing House. (About 30 pages; in press.) Examines recent development of clearing-house functions in different parts of the United States. M.—CANADA. 8 By Dr. Joseph French Johnson, of New York University. (In preparation.) [The Commission has also conducted personal inquiries in the leading Canadian cities, the substance of which will be published la t cr.] IV. --ENGLAND. THE DEVELOPMENT OF THE INDEPENDENT TREASURY SYSTEM. By Dr. David Kinley. (In preparation.) A history of Canadian banking during the last forty years, with a compilation of the banking statutes. THE CANADIAN BANKING SYSTEM. A study of banking practices and of the relations between the banks of Canada at the present time. Tabulation of a special report obtained by the Commission from all national banks as to the relative use of coin, paper money, and credit instrummts. THE HISTORY OF BANKING IN CANADA. By R. M. Breckenridge. (310 pages; in press.) Commission •is THE BALANCE OF TRADE AND INDEBTEDNESS BETWEEN AMERICA AND ENGLAND. By George Paish, editor of The Statist. (In preparation.) I 2882-09----2 9 National Monetary Commission National Monetary Commission ENGLISH BANKING. ORGANIZATIONS. By Ernest Sykes, Secretary of the Institute of Bankers. (In preparation.) ARTICLE. FRENCH SAVINGS AND THEIR INFLUENCE UPON THE BANK OF FRANCE AND UPON FRENCH BANKS. By Alfred Neymarck, editor of Le Rentier. (19 pages; in press.) V.—FRANCE. STATISTICS FOR FRANCE, 1870-1908. Prepared by Albert Aupetit, of the Bank of France, and M. Lefevre, of the Credit Lyonnais. (About 170 pages; in press.) VT.—GERMANY. STATISTICS These tables cover the statements of the Bank of France and other banks, credit societies, and financial institutions during the Tables covering the operations of the Reichsbank, the German joint stock banks, the hypothekenbanken, landschaften, savings banks, etc., the general growth of population, business, wealth and commerce, the movements of gold, rates of discount and of foreign exchange (luring the last forty years. international exchange, etc. EVOLUTION OF CREDIT AND BANKS IN FRANCE. By Andre Liesse, professor in the Conservatoire National des Arts et Metiers. (271 pages; in press.) THE REICHSBANK, 1876-1900. (355 pages; in press.) A study of the development of French banking from the founding of the Bank of France down to the present time. A translation of the volume describing the organization and operations of the Reichsbank published upon the occasion of its twentyfifth anniversary. THE BANK OF FRANCE IN ITS RELATIONS TO NATIONAL AND I NTERN ATIONAL CREDIT. By Maurice Patron. (159 pages; in press.) GERMAN IMPERIAL BANKING LAWS. Edited by Dr. R. Koch,former president of the Reichsbank. (197 pages; in press.) Examines the functions, polices, and influence of the Bank of THE FRENCH BANKING SYSTEM. By Albert Aupetit, head of the Department of Economic Studies in the Bank of France. (In preparation.) Describes the different kinds of banks operating in France, the nature of their business, and the provisions of law or custom which GERMANY, 1870-1908. Prepared by Dr. B. Breslauer, of the German Bankers' Association, and Robert Franz, of the Deutsche Oekonomist. (About 18o pages; in press.) last thirty years, with statistics showing the growth of population, business, wealth, and commerce in France, the rates of discount, France. FOR 1 Contains the text of the principal laws relating to banks passed since 1875, with a descriptive introduction. THE GREAT GERMAN BANKS AND THEIR CONCENTRATION IN CONNECTION WITH THE ECONOMIC DEVELOPMENT OF GERMANY. By Dr. J. Riesser. (About 210 pages; in press.) govern them. Includes the text of the principal statutes governing the various classes of banks. A study of recent developments among the large joint stock banks of Germany. THE HISTORY AND METHODS OF THE PARIS BOURSE. By H. Vidal, editor of La Cote de la Banque et de la Bourse. (.4 bout tho pages; in press.) MISCELLANEOUS ARTICLES ON GERMAN BANKING. (263 pages; in press.) Follows the history of the Paris Bourse, its organization, methods and regulations. 10 Articles by various writers upon the check and transfer system, the organization of credit, the system of directors' fees, land mortgage associations, agricultural improvement banks, savings banks, cooperative societies, etc. II Nat ion al oneetary• Commission RENEWAL OF REICHSRANK CHARTER. (About 240 pages ; in press.) Miscellaneous articles concerning the renewal of the charter, including a discussion of the subject in the German Bankers' Association convention and the draft of the proposed bill. THE GERMAN BANK INQUIRY OF Reports. (1,140 pages; in press.) 1908. Stenographic Stenographic reports of the proceedings of the German Bank Inquiry Commission of 1908. SELECTED DOCUMENTS ON BOURSE LEGISLATION AND ORGANIZATION IN GERMANY. (Too pages; in press.) The text of the laws and regulations governing the German stock exchanges. DEVELOPMENT Or THE GERMAN BANKING SYSTEM. By Robert Franz, editor of the Deutsche Oekonomist. (III pages; in press.) A statistical study of the development of different sorts of bankA in Germany. VII.—SWITZERLAND. THE SWISS BANKING LAW. By Dr. Julius Landmann, of the Swiss National Bank. (238 pages; in press.) An account of the recent change in Switzerland from decentralized to centralized note issue, with the text of the act of 1905 and abstracts from recent articles and reports upon the operation of the act. National Monetary Commission • • M.—JAPAN. THE BANKING SYSTEM OF JAPAN. By Marquis Katsura, Premier and Minister of Finance of Japan, Baron Sakatani, Ex-Minister of Finance, and Baron Takahashi, Vice-Governor of the Bank of Japan. (In preparation.) X.—SWEDEN. THE SWEDISH BANKING SYSTEM. By A. W. Flux. preparation.) This volume, prepared for the Commission in Sweden, traces recent developments in Swedish banking and especially the concentration of note issue effected by the law of 1899. XI.—BELGIUM. THE NATIONAL BANK OF BELGIUM. By Charles A. Conant. (238 pages; in press.) An account of the history of the bank and of the laws and customs which govern its operation. XII.—MEXICO. THE BANKING SYSTEM OF MExico. By Charles A. Conant. (About 200 pages; in press.) An account of banking legislation and practice in Mexico. xrn.—DIAGRAMS. ITALY. BANKING IN ITALY. By Carlo F. Ferraris. (In course of translation.) Traces the history of banking in Italy during the last forty years. THE BANK OF ITALY. By Comm. Tito Canovai, General Secretary of the Bank of Italy. (In preparation.) An account of the conditions and motives which have led to the growing eunceutration of power and note issue in Italy during the last fifteen years. [A contribution upon recent tendencies in Italian banking is also expected from Signor Luzzatti, former Minister of the Treasury.] (In PORTPOLIO Or DIAGRAMS. (24 diagrams in color.) Indicating the opeiations and growth of the different sorts of banks, changes in the money supply, foreign and domestic movements of money and merctandise, rates of discount and of foreign and domestic exchange in the United States and other countries during the last forty years. 12 13 • • APPENDIX A. EUROPFAN CONFERENCES HELD BY REPRESENTATIVES OF THE NATIONAL MONETARY COMMISSION. CONFERENCES IN LONDON. 1908. Aug. 12. Parr's Bank (Limited), Mr. R. W. Whalley, general manager. Union Discount Company, London, Mr. Christopher R. Nugent, manager. Prof. Herbert S. Foxwell. Aug. r3. London City and Midland Bank (Limited), Mr. Edward 11. Holden, M. P., managing director. National Provincial Bank of England (Limited), Mr. R. T. Haines, general manager. Sir George Murray, K. C. B., permanent secretary of the treasury. Aug. 14. "The Statist," London, Mr. George Paish, editor. Aug. t5. Parr's Bank (Limited), Mr. R. W. Whalley, general manager. Bank of England, Mr. W. Middleton Campbell, governor; Mr. Frederick Huth Jackson, director; Mr. Alfred C. Cole, director; Mr. Edward C. Grenfell, director. Aug. 17. London City and Air:Wand Bank (Limited), Mr. Edward H Holden. Bank of England, Mr. H. W. Search, discount officer. London and Westminster Bank (Limited), Mr. T. J. Russell and Mr. Edward Clifton Brown. Aug. 18. Baring Bros. & Co., London, Mr. Gaspard Farrer. Hong Kong and Shanghai Banking Corporation, Mr. C. S. Addis, manager in London. Aug. 19. Bank of England, Mr. Frederick Huth Jackson, Mr. Alfred C. Cole. Munroe & Co., Mr. F. de Reiset, 7 Rue Scribe, Paris. Bank of Liverpool, Mr. James H. Simpson, general manager. Aug. 20. Swiss Bankverein, London, Mr. Leon Rueff, managing director; Mr. L. Joseph, submanager. '.5 National Monetary National Monetary Coinmission Coinmission • CONPERENCES IN BERLIN. • Aug. 26. Deutsche Bank, Dr. Paul Mankiewitz, director. Aug. 24 and Sept. 26. Banque de France, M. Pallain, gouverneur. Sept. 29. Credit Lyonnais, M. Lefevre, chef des etudes financieres. Comptoir d'Escompte, M. Ullmann, directeur. Oct. 1. Credit Lyonnais, M. Lefevre. Oct. 2. Oct. 3. Credit Lyonnais, M. Lefevre. Oct. 5. Caisse des DepOts et Consignations, M. Delatour, directeur g neral. Oct. Aug. 28. Rcichsbank, Dr. von Glasenapp, vice-president; Dr. von Iminni, director. 29. 6. Mouvement des Fonds (ministere des finances), M. Sergent, chef. Caisses d'Epargne, M. Georges Paulet, directeur de l'assurance et de la prevoyance sociales, au tninistere du travail. 7. Banque de Paris et des Pays-Bas, M. Moret, directeur. Banque de France, M. Pallain, gouverneur. Dresdner Bank, Herren Schuster & Nathan, directors. Aug. 31. Dresdner Bank, Herren Schuster & Nathan, directors. Reichsbank, Dr. von Glasenapp, vice-president; Dr. von director. Sept. 1. Deutsche Bank, Dr. Paul Mankiewitz, director. Sept. 2. Reichsbank, Dr. von Lumm, director. Dresdner Bank, Herren Schuster & Nhthan, directors. Sept. 4. Schulze-Delitsch Genossenschaften, Herr.Kleetnann, director. Sept. 7. Preussische CentralGenossenschafts-Kasse, Geheinira t iIeshcrgcr et at. Berliner Kassel' Verein, Herr Hoppenstedt. Sept. 8. Preussische Central Bodenkredit Actien Gesell,cha it, gierungsrat von Klitzing. Sept. .\R1S. Aug. 25. Credit Lyonnais, Baron I;rincard, administrator. Aug. 27. Deutsche Bank, Dr. Paul Mankiewitz, director. Reichsbank, Dr. von Glasenapp, vice-president; Di- N, director. Aug. CONFERENCES IN Oct. Credit Agricole, M. Dechartne, chef du service du credit muttiel et de la co-operation agricoles. Credit Fowler, M. Touchard, secretaire general. ADDITIONAL CONFERENCES IN LONDON. Re- Lord Swaythling. London. Joint Stock Bank, Mr. Charles Gow, manager. Oct. Oct. 9. Preussische Central Genossenschafts-Kasse, Geheimrat Hessberger et al. Pfandbrici Bank, Kommerzienrat Dannanbaum. I 2. 13. The Union of London and Smith's Rank, Sir Felix Schuster, governor. 1909. Sept. to. Royal Seehandlung, Geheinter Oberfinanzrat l,ittner, vicepresident. Oct. Sept. i 1. Kur- und Neuniarkisches Ritter,chaftliches Kredit-Institut, Geheitnrat Heintze, president. Neues Brandenburgisches Kredit Institut and Kur- und Neumarkische Ritterschaftliche Darlehns Kasse. Sept. 14. Berliner Handels Gesellschaft, Dr. Nlosler. Disconto Gesellschaft, Dr. Salomonsohn. Sept. 115. Von Alendelssohn & Co., Herr Franz von Mciidelssolin. S. Bleichroeder, Dr. von Schwabach. Sept. 16. Berliner Sparkasse, Herr Stadtrat Emil Gehricke, president. Sept. 18. Disconto Gese/brhaft, Dr. Salonionsolui. • 16 I-2. Panea d e nt/i/(7, 0)111111. Tit() C:it1()Viti, chtel golieral secretary. APPENDIX B. APPENDIX B--Continued. .s',Hilmary of the special nports obtainedfor the National Monetary Lm mission from 22491 banks of Ike United Slates (including national, state, savings, and private banks and loan and trust companies), showing their condition at the close of business on the 28th day of April, 1909. Summaly of/lie special reports obtainedfor the National Moneta?) , Commission from 22,191 banks of the United States (includingnational, slate, savings, and private banks and loan and trust companies), showing their condition at /be close of business on the 2Slk day of April, 1909—Continued. LIABILITIES. RESOURCES. [Includes island possessions. j L Includes island possessions.] 22,491 banks (including reserve city banks). 1. Loans and discoun's: (a) On demand, unsecured by collateral (b) On demand, secured by collateral (c) On time, with two or more names, unsecured (d) On time, single-name paper. unsecured (e) On time, secured by collateral (f)Secured by real-estate mortgag( •I (g) Not classified a. Overdrafts: (a) Secured (b) Unsecured ..... 3. Bonds, securities, etc., including premiums thereon: I. Domestic securities: (a) United States bonds (b) State, county, and municipal bonds •• (c) Railroad bonds (d) Bonds of other public-service corporations (e) Other bonds (f) Stocks 2. Foreign securities: (a) Government bonds (b) Other securities 4. Banking housea 5. Furniture and fixtures 6. Other real estate owned 7. Mortgages owned 8. Due from national banks 9. Due from other banking institutions to. Checks and other cash items II. Exchanges for clearing house 12. Actual cash on hand: (a) Gold coin (b) Gold certificates (c) Silver dollars (d) Silver certificates (e) Subsidiary and minor coins V) Legal-tender notes b (g) National-bank notes (h) Cash not classified 13. Five per cent redemption fund :old due from Treasury .. All other iterc. ....... 14. 1. Capital stock paid in Surplus 3. Undivided profits(including accrued interest and any other amounts set aside for special purposes, except item 15, less current expenses, interest, and taxes paid) 4. Due to national banks 5. Due to other banking institutions 6. Dividends unpaid 7. Individual deposits subject to cheek 8. Savings deposits or deposits in interest or savings depart' ment 9. Demand certificates of deposit to. Time deposits, including time certificates of deposit. 11. Certified checks 12. Cashier's, treasurer's, or secretary's checks outstanding .. . 12a. Deposits not classified tab. United States deposits and deposits of United States disbursing officers 13. Notes and bills rediscounted 14. Bills payable, including certificates of deposit representing money borrowed 15. Reservea for taxes 16. National-bank notes outstanding ... 17. Bonds borrowed . 18. All other liabilities $ ,42 952. 28 660 5, 1, 939,634,898. 23 65, 2,539,9 833.06 1,351,781,832.63 2,036,358,417.46 1,127, 276,405.37 6 2 9, 373. 194. 28 2. 1 .0 435,0 4.50 29, 264'4 .48 9 8 792,787, 711. 29 I,0 91.541.4‘5. 19 560, oo6, 36o.83 I, 466,526,687.08 379.646,689. 28 280,226,872.27 24,637,510.66 19,068,929.67 408, 550, 195. 16 40, 108, 261 .75 8 , 95 377,084.9 1,378, 701,565.09 028.02 1,979,591, 582,480.674.66 57,927,035.65 379 965,542.46 , Total 21,095,054, 420. 72 Total 18 • $r,800,036,368. oo 1, 326,09o,642. 50 508,534,786.43 1,103,918, 704.30 1, 380, 185, 191.07 3,310,944. 7 6 0.49 6,956,502,(1) 4,926, 161,555.02 625,189,163.97 1,211,831,194 22 177,404, 218.05 94,011,625.86 44,422,717.43 70,401,818.99 18,01o,o36.35 75,0 47,861.43 7,36r,966. 12 636,367,526.00 34, 198,821. 10 96,066,588.63 21,0 054,420. 72 951 226,866,347.03 582, 707,820.00 22,567,086. oo 179,6o9, 270.00 32,911, 340.51 271,794,002.00 8 94. 113,53 .0 °° 22,020,666.SO 38,500,580. 14 72,879,433.91 ----- - - --- ------ -a Includes furniture and fixtures of the national banks. 0 Includes all kinds of paper currency in the case of a few banks which failed to make separate.retnrns. ; 22,491 banks (including reserve city us), 49111 , 19 PROCEEDINGS OF THE NATIONAL MONETAlii COMMISSION. Seate Office Building, Washington, P.C., Nove ,ber 22, 1909. The Commission met at 11 o'clock a.m., pursuant to adjournment. ?resent: Messrs. Aldrich, (Chairman) Vreeland, Burrows, Hale, Teller, Money, Overstreet, 3urton, Weeks, Bonynge, Smith, ?adgett, and '3urgess. After some further discussion in recard to t1e distribution of the publications of the rlommission, it was generally agreed that at the time a document was released to the newspapers, a brief summary of its contents should accompany it, so that it could be handled more readily and more correctly by the press. Yr. Hale moved that the Chairman be authorized to appoint a subcommittee who diould be empowered to work out the details of disseminating information and distributing the documents of the Commission, which motion was unanimously adopted. The chairman thereupon ap Jointed the folluwinr subcommittee: Messrs. Aldrich l(Chairman) Vreeland, Teller, Overstreet, Burton, Weeks, Bonynve l and lurp;ess. Thereupon, at 1 o'clock p.m., the Commission adjourned to meet at the call of the Chairman. 10T.11ThEE ON PUBLICITY, PROCEEDINGS OF TIEE SUBC, NATIONAL MONETAI:Y COMMISSION. Senate Office Building, Washington,D.C., November 23, 1909. The Subcommitiee met at 11 o'clock a.m., pursuant to the call of the Chairman. Present: Mes(;:rs. Aldrich (Chairman), Vreeland, Teller, Overstreet, Weeks, BonynFe, and Burgess. The members of the subc)mmittee had a short preliminary discussion in regard to the plans of issuing and distributing the publications of the Commission, and preparing tinen for the newspapers. The Chairman suggested that r. Charles A. Conant, of New York, might be of assistance to the Commission in .reparing abstracts, or summaries, of the various docuraents to rive to the press, but no definite action was taken. 71r. Overstreet and nrofessor Andrew were authorized to draw up a tentative plan for distributing the list of pulplications to all tl-e newspapers of the country on a certain date, accompanied by a statement descriptive of the vur LOuS articles and the persons who wrote them. At 12 o'clock M. the subcommittee adjourned to meet at 11 o'clock a.m., Friday, 'rove-lber 26, 1909. PROCEEDING OF NATIONAL JIONETARY COM=SION. Senate Office Building, Washing,ton, P.C., Dece iber 7, The CanmiL;sion met at 10:30 a.m., pursuant to the call of the Cairrlan. Present: Messrs. Aldrich l (ahairrlan), Vreeland, 73urrows, Teller, 'oney, '3urton, Weeks, Bonynge, Smith, Padr7ett, Hale, and ?ujo. The question of the printing and distribution of the documents of the Commission, which has been under consideration by the Subcorrimittee on Publicity, was taken up for discussion. It was decided to introduce a join', resolution in Congress, and to try to secure its adoption, to cover the following points: 1. To make all reports and papers issued b., the Commission puThic documents, so that they will possess the status and all the rights and ::•ivileF'es attaching to public documents. 2. To grant the franking privilege to the nommission. Mr. Wf.eks suggested that, in view of the fact that the 71resident, in his annual message, would probably recommend legislation in regard to postal savings banks, it would be wise for the nommission to r:ecure all information and statistics available at home and abroad on this subject. some discussion, . Kale mJved tl",,t the After hairman be author- Minutes Dec.7-09. 2. ized to appoint a subcommittee to secure this information, and report t the Commission. The motion was seconded and adopted, and the Chairman appointed as a Subcommittee on ?ostal r)airings Banks, Messrs. Weeks (Chairman), 7urrows, Vreeland, and Padr-ett. The Commission thereupon adjourned meridian. at 12 o'clock, , PLAZA It02.11 1 Nrinv Y01-',K CITY, Nomm3EP, 10 - 1:2, Pursuant to the call of the Chairman, the National Monetary Commission met at t. -le Plaza Hotel, on Thursday afternoon, Now,mber 10 at two o'clock. Present: Messrs. ALDRICH(Chairman), VE(14:14:LAND KJ] ROWS,_ TELLE1 ._, MONEY, and BONYTICTE. The Chairman ai:ratinced to the Members of the Cornrithion that the -preliminary work of securing information ad data on the monetary systems of this d other countries wLe,1 al7;out com- pleted, and that the time had come for the Conmission to proceed to work upon the consideration of its report. He t;aid that he had called the meeting at this time, so that the Members might discuss amon,_: themselves the best nethoo of procedure. He laid before the Commis s ion the inv it:71 t ion oi t 1 ie Ace.demy of Political Science of the Cit:, of Yew York to attend the sessions of its 30th annual meting on Friday and Saturaay, November 11, and .1.: lows: -or7ramme fcr this sest.-.ion is as folThe pl ADMISSION Admission to the Sessions at Columbia University will be by member's ticket or guest card. Cards for the Dinner on Friday evening at Hotel Astor (to which ladies may be invited! are Four Doilats to members and Five Dollars to n)n-members. Dinner cards and guest czuds for the other sessions may be ol-tained by addressing the Socretary of the Academy, Robert Erskine Ely, 23 West Forty-fourth Street, New York. Checks should be drawn to the order of G. A. Plimpton, Treasurer. Invitation Cards for the Reception will be mailed to members and guests. DELEGATES Delegates appointed by the Governors of the several States and by Chambers of Commerce and other commeicial bodies will please notify the Secretary of the Academy, 23 West Forty-fourth Street, immediately upon their art ival, giving their New York address to which cards for the Sessions and the Reception may be sent. The Academy of Political Science in the City of New York NOTE At the Dinner on Friday evening, Senator Aldrich will make an important statement concerning the work of the National Monetary Commission. Program Second Edition PROCEEDINGS The Proceedings of this meeting together with other valuable papers by eminent specialists upon various topics treated in the publications of the National Monetary Commission, especially prepared for the Academy, will be published in a volume ready for distribution gratis to members soon after the meeting; to other persons. $t.co, postpaid. An important Volume of Proceedings containing a series of papers on "The Economic Position of Women" has just appeared and is being mailed to members; price to non-members, $1.50, postpaid. COMMITTEE OF ARRANGEMENTS Samuel McCune Lindsay, Chairman Barton Hepburn A. William H. Porter Nicholas Murray Butler Jacob H. Schiff Andrew Carnegie Edwin R. A. Seligman Isaac N Seligman Henry P. Davison Frank J. Goudnow James Speyer J. Pierpont Morgan Frank A. Vanderlip William A. Nash Paul M. Warburg THIRTIETH ANNUAL MEETING New York City, November II and 12 1910 ) A National Conference on the Currency Problem To he conducted with the co-operation of the New York Chamber of Commerce and the New York Merchants Association General Topic The Work of the National Monetary Commission These Three Sessions of the Conference will be held in EARL HALL, COLUMBIA UNIVERSITY I. SESSION, FRIDAY, NOVEMBER 11, 10.30 A.M. Presiding Officer, PROF. EDWIN R. A. SELIGNIAN Chairman of the Executive Committee of the Academy SUBJECT Bank Assets and Sound Currency PAPERS "American Banks in Times of Crisis under the National Banking System" E. W. KEMMERER Professor of Economics. Cornell University "Bank Notes and Lending Power" J. LAURENCE LAUGHLIN Professor of Economics, University of Chicago DISCUSSION II. SESSION, FRIDAY, NOVEMBER 11, 2.30 P.M. Presiding Officer, DR. ALBERT SHAW Vice-President of the Academy SUBJECT Currency Reform and Business Stability FRIDAY EVENING, NOVEMBER 11, 7 P.N1. ANNIVERSARY DINNER AT THE HOTEL ASTOR SUBJECT FOR DISCUSSION "The Need for Currency Reform" A. BARTON HEPBURN, Presiding President of the Academy President of the New York Chamber of Commerce GUESTS OF HONOR Senator NELSON W. ALDRICH Chairman National Monetary Commission HON. 'WILLIAM J. GAYNOR Mayor of New York City President NICHOLAS MURRAY BUTLER Columbia University JACOB H. SCHIFF Vice.President of the New York Chamber of Commerce HENRY R. TowNE President of the New York Merchants Association PAPERS "Lessons from the Bank of England" JOSEPH FRENCH JOHNSON Dean of the School of Commerce, Accounts and Finances, New York University "Currency Reform from the Business Man's Standpoint" IRVING T. BUSH Chairman of the Currency Committee of the Merchants Association of New York DISCUSSION Ill. SESSION,SATU R DAY,NOVEMBE R 12,10.30 A.m. Presiding Officer, PROF. SAMUEL MCCUNE LINDSAY Chairman of the Committee of Arrangements SUBJECT Proposed Changes in our Monetary System PAPERS 44 Principles that must underlie Monetary Reform in the United States" PAUL M. WARBURG "The Transition from Existing Conditions to Central Banking" CHARLES A. CONANT DISCUSSION SPEAKERS Thirtieth Anniversary Greetings from Columbia University President NICHOLAS MURRAY BUTLER Greeting from the American Academy of Political and Social Science President LEO STANTON ROWE "The Need for Currency Reform'' Senator NELSON W. ALDRICH HON. A. PIATT ANDREW Assistant Secretary of the Treasury JACOB U. SCHIFF HON. GEORGE E. ROBERTS Director of the Mint PROF. J. LAURENCE: LAUGHLIN sATuRDAY AFTERNOON, NOVEMBER 12 RECEPTION From 4 to 6 O'clock To Members of the Academy, Speakers at the Annual Meeting, Official Delegates and Guests, by the President of the Academy, Mr. A. Barton Hepburn, and Nirs. Hepburn. It wat; Linanimouloy decided that the 7:Lembe:.s then present and those who should arrive later would atlend and participate in the Lroceedirws of these sessions. The Chairman announced that the Currency Commission of the American Bankers As:;ociation was then in New Tork also in attendance upon the sessions of the American Academy of Politdcal Science, and that they had expressed a desire to meet the jembers of the Monetary Commission. It was voted to invite the members of the Currency Commission to cal] at once, and the following membes presented themselves: CURRENCY COMMISSION OF THE AMERICAN BANKERS' ASSOCIATION A. B. HEPBURN, CHAIRMAN, PRES CHASE FESTUS J. WADE MYRON T. HERRICK PRES. MERCANTILE TR. CO., ST. LOUIS JOSEPH T. TALBERT CHAIRMAN VICE-PRES. COMMERCIAL NAT BK , CHICAGO V. P. WHITNEY -CENT PRES NAT'L BANK, ST L OUIS PRES. PEOPLES NAT NAT HE , NEW NAT'L BK.. INDIANAPOLIS NATIONAL SANK, CHICAGO NAT. BK KANSAS CITY MCCORD vocc-poiEs. ORLEANS THIRD NAT. BK , ATLANTA W. V. COX BK., PITTSBURGH PRES. SECOND ARTHUR REYNOLDS PRES. AMERICAN FIRST JOSEPH A ROBERT WARDROP JOHN PERRIN rIMSI E. F. SWINNEY SOC. FOR SAVINGS, CL EVEL ANU SOLOMON WEXLER CHARLES H. HUTTIG PRES, THIRD JAMES B. FORGAN, VICE-CHAIRMAN, PRES NATIONAL BANK. N NAT NE. WASHINGTON JOHN L. HAMILTON PRES. DES MOINES NAT. BK. DES MOINES V P. HAMILTON & CUNNINGHAM, HOOPESTON, ILL •oLUTHER DRAKE PRES. MERCHANTS NAT. BK , OMAHA FREDERICK E. FARNSWORTH, SECRETARY, 5 NASSAU AND II PINE STREETS, N. Y 5 NASSAU AND 11 PINE STREETS NEW YORK, The conference lasted over an hour and tv'e ''enl ers of the , Cui-enc2, Commission E:xp:essed great interest in and sympathy the work of the Yonetary Commission, ard asoured the Commission of teir hearty cooperation. There were further meetings of the Commission on rriday, November 11, and Saturday, rovember 12, which were at ended by 'les3rs. Padgett, Burgess, and Pujo, in addition to those who a- cnaed Thursday's mee 4 ing. : The Commission then adjourned to meet in Washington the latter part of November, the exact date to be fixed by the Chairman. 2.c:: .T0'71UTAL OF 001.217:1101; M COL::7111J :TETI YORK, Nov., 12, 1910. wor mow iielmenw mow Goma/ 919.--41XTEEN PAGES.' 1. ILDRICH ASKS FOR BUSINESS COUNSEL Nieuwe ALDRICH ASKS FOR BUSINESS COUNSEL 3 THIS IS NEXT STEP, SAYS MONETARY COMMISSION'S CHAIRMAN. ; THIS IS NEXT STEP, SAYS MONETARY COMMISSION'S CHAIRMAN. First Stage of Inquiry Completed— First stage of Inquiry Completed— • . Senator Appeals to Economists, .1lai.kere and People to Seek Solution on National Basis, Without Sisal. Tinge of Partisanship—Ad. Senator Appeals to Economists, Bankers and People to Seek Solution on National Basis, Without Single Tinge of Partisanship—Advocates Reciprocity Treaties. veeatet Reciprocity Treaties. CONTINUED FROM FIRST PAGE. Senator Aldrich, chief guest last night at the banquet held at the Hotel Astor in connection with the National Monetary Conference holding sessions at Columbia University yesterday and to-day, announced the completion by the National Monetary Commission of the first stage of its work—its inquiry into the experience of other countries. The Commission now purposes to seek the counsel of economists, men of affairs, bankers and business men for their co-operation in the solution of the monetary problem, for a proper organisation of the national credit system, without a single tinge of partisanship. Stnator Aldrich said: "The National Moneta?" Commission has , completed its work upon one very important phase of the examination which they believed to be necessary preliminary to the preparation of their final report. I sllude to the inquiry which we have made Into the experience of other countries; exhaustive examination into the conditions and causes which have led to the adoption of. modern monetary systems and practices in the other commercial nations of the world. • • "Your president has alluded briefly to ink the. value of .that examination and its reW sults. I think this series of monographs which have been published and distributed, with two or three others that are now in course of preparation, will certainly present to students, and to the people of the country, a better history of what has been accomplished than we could obtain in any other way. TO PROPOSE PLAN TO CONGRESS AT EARLIEST POSSIBLE MOMENT. "We _commence to-day, I think I may safely say, our work upon another and even more important phase of the difficult task which has been assigned us. We intend to commence immediately upon the work of examination with a view of completing our work and of making our ref:i port, of a plan, of jeme plan, for the approval of Congress at the earliest practicable moment. We intend—and I may ss.y I can safely speak for the entire Commis r4 in thie respect—to !mimic:teasing in our labors in that respect, and it the time taken . la Isaget than some of you think it ought to hiITkut silts that when you consider the magnitude and the complexity of the Question that you would be lenient with us for any details which may seem to you unneoessary. 'What we now propose to do is to seek counsel and to invoke the calm judgment of economists, of students, of men of affairs, of bankers and business men with , reference to the work which we have in hand. We shall appeal to the thoughtful men of this country, like those that you met to-day, the commission of American Bankers' Association and the representatives of the Merchants' Association of New York, and to other representatives throughout the country. We mean to appeal to thoughtful inch in every section of the country, asking them. as I believe we have tha right to del, for their co-operation and 1 proach it with an equally open mind. And then, with my faith in the intelligence and patriotism of the American people, 1 believe that there can be no question what' ever about the result. "I have been told frequently that we should encounter prejudices, prejudices of locality, prejudices as to the control of great interests, as to any institution or any organization which we should suggest. I realized as well as any person can that there can be no successful solution of this question that does not only eliminate politics but eliminates the possibility of control in any section or on the part of any interest, great or small. "This question, as I have said, is essentinily a national question. It must be settled upon national lines. I realize that better than any cne else what great differences have existed and do exist, Prchably, Lii day with refe.ence not only to the truk.i. consider, but as k ubjecte whizii , to the dha•ok Won of them. I sh.tii take your time Tientint in undertaking t..) sta»ding of the ietects reheatee of the eXtEtIng byfiteM. or my ideas ..uilcut said & system which should be adopted. n,y opinion the quesa year ago 1 nat . tions affecting the currency and the note .--tqle were of inapt less importance than the (meal ion of Um w ganization or re.11.anizst;nii of trie e:•edit and of the hank in, syeteris „if ;he country. Further si.u3Y and a more carefu; examination oZ the questions have cqnfirmed me fully in that belicf I ls.t. greatly btatitied thlr. 'n3rnInc to hear publitthec by one of Amert.,a's t:rsatest economists, in which Prof. Loup!Pi took Cie pcsielr.n that after al, this question was not a question primarily or particularly of not. Issues, but was a :ft, thin of , ei es find or the lending power of the banks. In other Words, a question of how we can make our immense capital 'always equal to any emergency and always available to the wants of the business community of this great country. I realize fully, as I am sure that the professor does, that there is an important question connected with the character of our note Issues and the manner in which they shall be hustled; but that is subordinate to the other. I have been struck also, within the last three months, with the importance of this question, not only to us in our domestic relations, not only as local questions between banks and their customers, but With the international aspects of this great question, and the growing importance of those international relations. . •'Eno United ,1,414Ltsa. appear on the world's arena more and more im as a great power of the world. • Tritali‘ Berlin and Paris and London are inter-!, ested—as we are interested in the financial , affairs of Berlin, Paris and London— whzt In happen, II! ' / the Unitud States. What is felt here is felt throughout the world. The reverberation of the panic of 1907 encircled the world, and there was no country with any system, however wise or important, that did not feel the blighting effects of our panic. "I have been struck within the last few days by some aspects of the international business connected with this inquiry grow, ing out, first, of the cotton bills. We send out of the United States $1;500,000,000 of products; we import about two thousand million value of products, making in all In the neighborhood of thirty-five hundred million dollars. Eighty per cent of that ,vast business, at least, is dent by foreign bankers with foreign capital. Of course some Of it passes through New York. New Orleans and Chicago in transit. but the real business is done by foreign houses with foreign bills of exchange. I Now, it is not exactly creditable to us, '• with our immense capital and resources, that that should be true. isaiVissat harrnanika 0.611P411•411 •Irii "MO Ch. MIP. s'. . I tines in the other commercdal nations of • the world. "Your president has alluded briefly to ik the value of .that examination and its resuits. I think this series of monographs which have been published and distributed, with two or three others that are now in course of preparation, will certainly present to students, and to the people of the country, a, better history of what has been accomplished than we could obtain in any other way. TO PROPOSE PLAN TO CONGRESS AT EARLIEST POSSIBLE MOMENT. "We commence to-day. I think I may safely say, our work upon another and even more important phase of the difficult task which has been assigned us. We intend to commence immediately upon the work of examination with a view of completing our work and of making our report, of a plan, of Jame plan, for the approval of Congress at the earliest practicable moment. We intend—and I may say I can safely speak for the entire Commis14ion in this respeob—to be'unceasing in our labors in that respect, and if the time taken la limier than some of you think it ought to be !Tan) ante that when you consider the magnitude &fad the complexity of the ques, tion that you would be lenient with us for any details which may seem to you unneoessary. "What we now propose to do is to seek counsel and to invoke the calm judgment of economists, of students, of men of affairs, of bankers and business men with reference to the work which we have in hand. We shall appeal to the thoughtful men of this country, like titose that you met to-day, the commission of American Bankers' Association and the representatives of the Merchants' Association of New York, and to other representatives throughout the country. We mean to appeal to thoughtful men in every section of the country, asking them, as I believe we have tile right to dd: for their co-operation and s A. /oft in some reasonable solution of this vast question. Loop -1..21211. POLITICAL CAMPAIGN DELAYED ACTIVE 1 WORK OF COMMISSION. "You may perhaps ask me why we have not commenced this work before. I will say that the fact that this work of obtaining literature was not completed, but I have another reason, so far as I am concerned, far not calling the Commission together for the last two or three months, because I did not think it was wile to enter upon any public discussion of this question in the midst of a heated political campaign. This question, if it is to be decided at all, if any solution of this queition is to be reached, any successful solution is to be reached. It must be without a single tinge of partitanship. It is not, and muet not be, In any sense a political question. It is a business question, affecting the material interests of the entire people of the United States. It is not a question which concerns economists and students and business men and men of affairs alone: It affects the borrowers as well as the lenders. Do you realise that t atie number of depositors iii the various banking institutions in the United States is greater than the entire number of people engaged in useful occupations in this country? There is riot a single person in the entire country that is not either directly or indirectly affected by the wisdom, or unwisdom, of our financial, monetary institutions. "I say then that the success of any movement which we may make, the success of I anvil...solution which we may suggest, depends,, tint upon the elimination of politics, not only from its consideration, but from the solution itself. Any plan which for one instant permitted of political control*hereafter in any of the great functions . of the organization which we might suggest, would be fatal. I realize this, and I think my associates on the Commisaion will bear me out when I say that this is not a new thought on my part. It has not arisen In my mind since I decided to go out of political life; it was not affected by the events of the last week; but it comes from a knowledge that this question, if it is to be settled at all, must be settled upon scientific and business principles that will appeal to the people .of this country regardless of their party affiliations or political bias. Therafore. I say that we have a right—at hope we have a right—to apply to he class of men whose instruction we have listened to. to-day to assist us in this great work. "The Commission has no plan. The Commission is approaching this question with p e onPn mind• AVP iinvo think, to ask the econoroists and thoughtful men througnout the country to ap- UD PAGE. CONTINUED ON • • • re leattle •ny of the existing system. or my ideas uheut said & sy.stem which should be adopted. iitiesnor opinion the . a year lit;t1 4 nat Lions affecting the currency and tne note woe of marl itas importance ')ian the titte.1010h of the us ganization or reand of the Lankof tne byetems „)f ;he country. Further soidY and a morn eerefu; examination oi the questions have confirmed me fully in that 1,4114cf I%%as greatly &matted Vitt- .n )rnInc to hear iniblishec by one of Ameri.e.'s i;reatest economists, in which Prof. Lou schliii took tile pcticirli that after al, this c;uestion was not a 4ucstion primarily or particularly of note Issues, but was ti 4aest es mot oi the lending power thin of the banks. In other wOrds, a question of how we can make our immense capital always equal to any emergency and always available to the wants of the business coll1Sallniti of this great country. I realise fully, as I am sure that the professor does. that there is an important question connected with the character of our note Issues and the manner in which they shall be issued; but that is subordinate to the other. I have been struck also, within the last three months, with the importance of this question, not only to us in our domestic relations, not only as local questions between banks and their customers, but with the international aspects of this great question, and the growing importance of those international relations. ,44.1ilkii,.,.tiathe4 Slate* appear on the. worm $ arena more and Innen important as a great power of the world. • -To-day Berlin and Paris and London are inter* ested—as we are interested in the financial affairs of Berlin, Paris and London— in what happens in the United States. What La felt here is felt throughout the world. The reverberation of the panic of 1907 encircled the world, and there was no country with any system, however wise or important, that did not feel the blighting effects of our panic. "I have been struck within the last few days by some aspects of the international business connected with this inquiry grow411' ing out, first, of the cotton bills. We sen out of the United States $1;500,000,000 of products; we import about two thousand million value of products, making in all In the neighborhood of thirty-five hundred million dollars. Eighty per cent of that vast business, at least, is done by foreign bankers with foreign capital. Of course some Of it passes through New York. New Orleans and Chicago in transit, but the real business is done by foreign houses with foreign bills of exchange. Now, it is not exactly creditable to us, with our immense capital and resources, that that should be true. "What happened in regard to the cotton bills? The situation disclosed what might easily happen to us, except for the courage and intelligence of the gentlemen who had control of the negotiations. There might have been a very serious trouble, financial trouble. And who suffered? Who pays the bills for these exactions and these regulations, whatever they may be that the foreigners put upon us with reference to our foreign business? It is the American producer, in the last analysis, that pays the bills. "Another thing that struck me; another # very recent event; American capitalists, it is said, have undertaken to underwrite a loan to China for 950,000,000. That business, suppose we had an organization here that had the confidence and the strength which some of the institutions of England and France and Germany have—don't you believe that American credit in foreign countries would have stood higher than it does to-day? "Another thing that struck me in connection with the international aspects of the question. I saw a statement a few days ago by an institution of the Bureau of Commerce and Labor showing the increase in our exports and manufactured products. It is said that trade follows the flag. But it never follows the flag if that flag is an empty symbol. It follows the flag when our banking interests, intelligent knowledge of the conditions of the parties to whom we are applying for trade, commercial relations and all those things are possible. One of the first neccessities of the situation, to expand our trade, is to have banking facilities that have the confidence, and can stand for confidence in all the markets of that world. We can extend our foreign trade. We can extend It—how? We can extend it by having clos2T. commercial relations with our near fielitnbors—with Canada with Mexico. We can extent It, other things being equal, that is through facilities being within our reach, by having closer commercial relations with South America. and the Central American States, and with the countries of the Orient. "I understand perfectly well .that the question might readily be asked me—and I think I see some gentlemen in the audience who would be very likely to ask me that question—how ate you going to get commercial relations with your views upon reciprocity, upon the treaties and upon the tariff, with South America and the Orient? I would &y, as I have always said, that we ought to have closer relations whether It involves the commercial treaties or otherwise with the countries who are the only customers we can hope to have for our products; countries that buy what we have to sell, and sell what we have to buy. I have no objection to commercial treaties with the South American States, with some of those great States which in the future of the world's history must occupy a position in these hemispheres that will only be second to the United States itself. If I were controlling this Administration—and going out of politics I think I can express this opinion safely. "I would immediately open up negotiations with every one of these countries loqking to tho extension of our trade, looking to closer commercial relations. Look at the situation in the Orient, look at the podsibilities of that! But these possibilities will be strengthened, I almost nitght say they will be created, by a proper organization of the credit system of die United States. I believe that we are all coming to the conclusion that in some way, not yet put down in black and white, not yet formulated by any man, perhaps, that in ; some way we must reorganize our credit t.vstom wo will not I.ornmanew at tha hottam. This work will not be a. work of revolution, but of evolution. It will not be a work of destruction to existing institutions, or curtailing the spirit of independence of existing institutions, but it will be a work of construction, commencing upon this great plane of our existing institutions and building up from that. and beyond that, an organisation that will be effective in times of panic, which can use reserves as one great master power for good, whenever occasion requires, that will place the credit of this great country, and of all these people, where it belongs—unequalled by any in the World." orders to the ackawanna •Steel and Bethlehem Steel companies. . Railroad orders for cars and locomotives have been insignificant, and although between 10,000 and 12,000 cars are said to be under negotiation, the prospect is not favorable for early contracts of importance. Steel riesibassta Prices. Bessemer stmtL, per tea. mill 28 00 80 Open hearth, per ton. mill 24 09 a24 50 . • STZBIL BARS Steel, sett bee% half ca.. tidewater 1 56 a.... . Wm* aro at t it water in carload ser ' leas than 2.000 1.001 Off: s 00 per ton &denbut WI 0 2.P4 We NMI 1.90 lbs. $500 lifentiasel k pie. fellealag PrL, ter O0 bundle lots and over Ir. et P. Miiii ler you 12 00 per ton father I . GalvanGalvanGauge- Black. lied. Gauge- Black. lied. Noe. 22 & 24..2.05 2.85 No. 0s 2.20 3.20 2 26 SAO No.. 25 & 26..2.10 2.23 No. 29 2.15 305 No. 30 No, 27 2.85 3.80 TIN PLATES. The prices, $3 60 net for 14x20, 100-lb box base, f. o. b. ibill. American Coke Tins, I. C., 14220 From Store, New York Bessemer SteelBessemer Steel 107 lbs.....4 80 a., 65 lbs 405 *410 415 .4 30 90 lbs 100 lbs. 395 a400 American -Charcoal TernesWorcester Grades, 14x20. 107 lbs.. 4 25 a 6 80 Worcester Grades, 14.20, 100 lbs.. 4 10 a 4 15 Worcester Grades. 14x28. 200 lbs.. 8 00 a 8 05 Woroester Grades, 20x28. 214 lbs.. 8 20 a 8 26 American Charcoal TinsAgaaway Grades, 14x20, 100 lbs.... 6 00 a 8 05 5 85 a 5 90 . MelYn Grades. 14x20. 107 lbs American Plates, f. o. b. mill futures.Coke tins. 14x20. I. C 375 a .... Coke tins. 14x20, 100 Ibli .3 60 a .... Coke tins, 14x20. 96 lb.' 8 55 a .... Coke tins. 14x20. 90 lbs -8 50 a, .... Charcoal term, 20:28. 200 lbs '-590 a .... Usual differences for other sizes and weights. Foreign Coke Tins, I. C.. 14x20, for importation; $3 74 per box. Bessemer SteelZessenter Steel Full weight.4.75 a4.80 95 lbs 445 14.50 4.65 a4.70 80 lbs 100 lbs 4 40 a4.45 95 lbs.; 4.56 *4.60 PLATES (Tidewater). Tank platea % and heavier 1 50 al.53 / 1 2 Tank plates, 8 to 14 In. wide 1.60 al.65 Tank plates. 14 to 100 ide 1 TO 8.1.76 ... Flange and boiler steel ....'1 85 &Lao Marine, ordinary fire box 1 95 *2.00 Still bottoms 1 93 a2.00 Locomotive are box 2 25 a2.55 Plates mure than 100 inches in width. Sc extra per 100 lbs; plates 9-18 inch in thickness. 12 00 extra; gauges Nos. 7 and 8. $11 00 extra; No. 9. $5 00 extra. These quotations are based on carload lots. With Sc extra for lees than- carload lots. Terms net cash in thirty days. STRUCTURAL MATERIAL (Tidewater). Fabricated prices indicate that plain material I. being shaded: Beams and channels, up to 35-1n...*1.56 a.... Beams and channels, over 16-Inch..1.60 al.05 Angles, 8:2 up to axe 1 50 &LDS Sees and tees 1. 55 *1.80 bars, halt extras Stein 1 46 .1.50 . Univ!& sheared. 84-in. & under...1.50 al.53 • Under special conditions 11 00 per ton less. RAILS (NEW). Standard sections, at mill a 1 25 Standard second quality, at mill.. a 1 20 Light sections. 40 to 45 lbs....... a 1 16 Light sections, SO to 35 lbs....... .., a 1 20 Light sections. 16, 20 and 25 lbs.. 1 21 a 1 23 Light sections, 12 to 14 lbs .. ... .., a 1 23 . TRACK SUPPLIES (Mill Shipment). Angle bars... .1 50.1 55 Bolts, sq. nuts.2 55a2 ¢5 ' 75a.1 8:1Bolta, h. nuts.2 70a2 80 Spikes IRON AND STEEL AT PITTSBURG. Bessemer iron 15 40 *13 90 Bessemer steel, f. o. b. Pitts 23 00 a28 50 Muck bars 22) 00 a.... i....kelp. grooved steel 1 30 a 1 33 Skelp, groOved iron 1 65 •1 70 Ferro-mangsnese (80 per cent) auboard 88 50 a39 00 Steel melting scrap '14 60 a14 50 Steel bars 140 a.... Black sheets 28-gauge 2 20 a .... Galvanized sheets, 28-gauge 3 20 a .... Tank plates, IX-inch and heavier 1 35 a 1 40 Wire roils 28 00 *2900 Wire'nalib.•••611,6641 1;1,, 1 70 a 1 73 Plain wire. ,.1 50 a 1 65 Cut nails 175 a 1 80 Barbed wire painted 1 TO a 1 75 • LEAD DULL AND EASIER, Refined Spoiler Stronger • Abroad': Here and '' • LEAD has been slow and easier in toniT here; slightly lower in West. Sp'ot, Novern: ben, December, January and February offered at 4%c, with 4.40c bid for all positions on 6.all at the Meta ....xS.J.1.11 u tot k riaay. :r , For East St. Louis delivery spot. November, December, January and February offered at 4.30c. with 41 c bid for all po4 talons in 'carload lots on call at the Metal Exchange on Friday. LONDON advanced 2s fid net. Spot Span- George C. Davis, M)South 10th St., PHILADELPHIA, PA, 4 METALLURGICAL CHEMIST Analyses of 1 111WISIMMIrTIRTI1Gaite' wis tee or Weilitow 7 in effecting exchanges by buying and selling drafts and having them accepted and • paid for, in return for a small profit from the transactions. What difference does it make with the extension of the trade whether this is done by foreign bankers or domestic bankers? It is no more done with foreign capital than domestic capital. The important thing is that it should be done at the lowest cost, and for all the world this service at present costs leas through London than anywhere else. So long as that is the case it will be an advantage to do it through that center of the world's commercial exchanges. The first thing is to build up the trade. There is no difficulty about banking facilities. Increasing them or getting possession .of them will not en %e trade unless other conditions are fa;toable. Mr. Aldrich revealed a newly developed consciousness that trade might be improved by reciprocity and closer commercial relations, but only with our neighbors, Canada and Mexico, and with South America, the Central American States and the Orient. These he spoke of as "the countries who ail, the only customers we can hope to have for our -countries that buy what we products have to sell and. sell what we have to buy." That is a queer idea, too. European countries are our best customers now, who buy most of what we have to sell and sell most pf what we have to buy, though there may be more opportunity for expansion in those other quarters. But European countries are free to extend their trade in those same quarters, and if we are to make headway there we shall have to compete with them in supplying what is wanted. The same economic principles apply everywhere. If we are to trade we hall have to learn to produce what people want at as low cost and sell it as cheaply as others from whom they can buy, and not talk about promoting trade with ships and banks of which there are plenty that now do the work cheaper than we can do it. EQUAL ENFOROEMENT Or LA When Mayor Gaynor heard that t express strikers in Jersey City would not accept the terms of the agreement which he had been instrumental in bringing about, he said in his wrath: "If the men reject that honorable agreement I shall teach them that the express wagons can run without their help, even if we have to man every one of them with policemen." This was an admission that the wagons and their drivers could be protected against strikers and the mobs which they excited in the streets by a vigorous exercise of the police power. That was all that was needed to keep them running in this city in the first place, and if thq power of protection had been vigcislv exercised there would have been n strike or it would not have lasted L twenty-four hours. The right to the protection of person and property and the duty of maintaining law and order for the safety of the people in the streets do not depend - upon the mood or the whim of th..2 Mayor. In such a matter as that it is - not for , him to take sides eithei from • 111111116.. Washington, D. C., Friday, December 2, 1910. The Commission met at 11 o'clock, a. in., pursuant to the call of the Chairman. PRESENT: 'LAND, HALE, . Messrs ALDEICH, (Chairman), TELLER, MONEY, WEEKS, BONYNGE, SMITH, and PADGETT. The Chairman discussed with the Commission several alternative propositions fo5.' monetary reform which, in his opinion, must be considered by it. There was a general dis- cussion of these propositions and also of the plans for the future work of the Conmission. The Chairman wasauthorized to appoint a sub-ccEmittee to make arrangements for the work of the Commission during the present session of Corr;ress and the following recess. He appointed the following sub-committee: Messrs. ALMICH, VRFELAND, TELLER, WEEKS, and PADGEr:T. It was informally understood that all meetings and hearings during the present session wo-uld be held in Washington, but that during the recess the Commission probably would, by sub-committee or otherwise, hold meetings in differeot sections of the ra..=dry fox the i)4.rpose of ascertaining the viewsof the . bankers and business men in the various communities. The following statement in regard to the meeting was subsequently given the the press by the Chairman: The Commission at its meeting this morning agreed to proceed at once actively with the work of investigation to include conferences and hearings with the representatives of commercial and other oraniz;-ttions. This work win be carried on in Washington until the expiration of the present sc;.3sicn, it being understood that immediately after adej ournment the CorimiEE;i on will give hearings to interest,eci parties in different, sectionta of the country. N() other action was taken at the meeting. The Cormission then at 12:30 p. m. adj curned Wash i n fr,t, , D. C , . Tuesday, Januz: ry 1'?, 1911. MINUTES. The Conni 3 ion nel, pv...suant to the call of the Chairman at ii a. m. Present: and Me:3 rs Hon. E. P. 1TEELAND, V i ce- Cha man , presiding, BU:H.:H.OWS , HALE,, MILER I TONEY, WE1S, Bo I TYITGE a nd r. I.'GE r...1 The following corinuni cat i ons from the Chairman were presented by the Chair, and the SecretLry was authorized to supply copies to the press: Whe: euiion the COrrirrii St:1i on adj ourned . SUGGESTED ?LAU FOP. MONMAL 1:2,G ISL. ION SUGGESTED PLAN FOR MONETARY LEGISLATION. WASHINGTON, January 16, 1911. DEAR MR. VREELAND: I had hoped, as you know, to be able to discuss informally with you and other members of the Commission the ideas which I have been formulating in regard to monetary legislation. Your absence from the city and my illness have made it impossible for me to discuss the matter freely with you, as I intended. My purpose was to call a meeting of the Commission early this week for the purpose of laying before them a general outline of my own plan for remedial legislation. I now find that it will be necessary for me to leave for the South to-day and that it will not be possible for me to confer with the members of the Commission. I have asked that a meeting be called for Tuesday morning, at which it will not be possible, of course, for me to be present, but I will be glad if you will present to the Commission the suggestions which I send you herewith. I have been for some time clearly of the opinion that it would he necessary to have some tentative plan as the subject of discussion and criticism. I, of course, do not expect the immediate approval of the Commission or that any formal action will be taken upon it. The plan suggested is a personal one that I fully believe will answer the requirements of changed conditions. It will certainly furnish to the commercial organizations of the country, who are now considering this subject, a basis for criticism and discussion. Very truly, yours, NELSON W. ALDRICH, Chairman. Hon. EDwARD B. VREELAND, Vir'e GA airman National Monetary t'ontmission, -Washington, D. C. 73826 - 11 1 Washington, January 15, 1911. in conformity with 1,1 n su estion mac:c at, the Iasi. meeting of the national Morietar: Co mission, I have prepared an outline for a tcntative plan for tl'e revision of our national b. J.kinc . ; lezisltion, which I beg, herewith 4Lo submit to tIle Corawicsio n. In dc)in, this it has been m: aim to sfl ..est dkanoes in the natio nal banking Act busineus. TICT will make it resnonsive to tl,e demands of modern The study whinh the Commission has given to t:His subject has, I believe, led irresistibly to the conclusion that our present bankin L sLrs',em, aich vas adopted nearly half , century ago and has remained practically uncl-ianed, not only fails completely under stress and in the prese'lce of unusual demands upon it8 resou rces, but has been found inadequate and unresponsive e-en under the or dinary conditions of ')usiness. The sll -estions submitted herewith are the result of years of study which I have gilren this Elnbject, and are forwulated in the light of the great mass of information which the Commi ssion has 3*atred respecting both our own ba:qcinc: system and needs and the experience and practices of foreign countries. Tf I am right in bolieng that the present law has become o'bsolete, and of this there can be no doubt, there is, ten, no rook for artinent in regard to the necessity for modernizing the law. thi •A.ss,rnin,; such to be the case it must be our aim to u-complish result ulth as li tie disarrangement as poosible. It should be our aim to libc:ralize the present ith,tiontd banking act ail(' to add to it such features as are deemed ess(Jntiz-11, rather: 4 Lin to formulate any plan In the ich will funda..:Ierliy el-Jul:6e our present it of our exi)orince it is obvious that one of the rrinoiro.1 needs is to firii some method for +.. 1.° u,iification of our present bunking instit!ltions into one (Jor.irre' (- 11.91. , 1.re system. other countries vie have found t reser, res In concentrated and used freely in any direction where needed. Under our faulty system reserves are so sca'tered a3 to be unavailable in time of trouble either for purposes of assistance or defense. The result of our law has been to create a bankinc system made up of a great number of isolated units, each working withi n a limited circle, anc: each of necessity 7overned by its own immediate interests without reerence to dhat would be for the greatest of all. ood While the intelligent managers of individual b(tAks may fully recognize the necessity of Teater cooperation, they are, under the law, powerless to effect it. If we can so amend the present national banking • act as to permit the formation of an aociation of all the banks of the r:ountry to =et these needs, we shall have gone a long .lay toward solving the problem which is before us. If then in addi- tion we provide a more scientific basis for bank note circu lation, so that the irolume of circulation will be responsive to the needs of business, ae shall, I believe, have met the tvro main requi re- crit, of satisfactory solution. aid in crn6.tin:: In addition to that, if we can ''iscount market in this country similar to the discount markets in urope, so that the most liquid portion of our bank funds 7,1 1_1 not of necessity be forced to sue): a4, 1,:xe degree as at present into the making of y&.al loans upon stock exchange b7)t, -rill. instead be cial business, we shall :1%1)1e LL- for the needs of cOnvider- so broadened our Itilking methods as to bring incalculable benefit to the coAnercial life of the country. T believe that the rom:l'isiolis IrLich I v)resont horc.:ith meet those conditions, and that the oraniziltion Otich it is prrIposed , to crel,te insure the benefits wich we s ,ek without running any risk of creating a financial instit'),- ion wv,irl can be controLled by ambitious monetary interests or dominated bir political influence. 'Mile we have found much that is adiAiraLle in tl- c operation of the various .overnment banks of Thrope, none of them im appli(:able to onr needs 1-ore. The -ood results which tle7 obtain can, I believe, DO racLed without the greatian of such a central bank. I feel that the plan which is proposed reaches those results without being open to the objections wilich may well be brought against such an instit ,3t-. on. 1 I recognize the fact th t the formulation of a definite plan is the task of the Co-q:Asion, and can be rtocomplished only after the subject has been stlldied with care in all parts of the country. Discussion iLLl certainly piodify and improve its details. I hope that the plan which I now submit for :our consi deration, and which, in its main feattires, in my opinion, meets the ne- cessary requirements, may be found of value to the CorruaiJ;sion in the necessary work of construction. (Ji)-doit Chairman, National ..:onetary Commiss ion. 1. RESERVE ASSOCIATION OF AMERICA. CHARTER AND LOCATION. It is proposed to charter the Reserve Association of America, which will be the principal fiscal agent of the Government of the United States. The authorized capital of the Reserve Association shall be approximately $300,000,000. The length of its charter shall be 50 years. The head office of the association shall be in Washington,D.C. The country shall be divided into 15 districts, and a branch of the Reserve Association shall be located in each district. The Reserve Association and its branches shall be exempt from State and local taxation, except in respect to taxes upon real estate owned by it. CAPITAL. Only national banks of the classes hereinafter provided for may subscribe to the capital stock of the Reserve Association. A national bank having a minimum capital of at least $25,000 may subscribe to an amount of capital stock of the Reserve Association equal to 20 per cent of the stock of the subscribing national bank, and not less, and each of such subscribing banks shall become a member of a local association as hereinafter provided for. Fifty per cent of the subscriptions to the capital stock of the Reserve Association shall be called in cash; the balance of the subscriptions will remain a liability of the stockholders, subject to call. Shares of the capital stock of the Reserve Association will not be transferable, and under no circumstances may they be owned by any corporation other than the subscribing national bank, nor by any individual, nor may they be owned by any national bank in any other amount than in the proportion here provided. In the case of a national bank increasing its capital after it once becomes a subscriber to the stock of the Reserve Association, the national bank shall thereupon subscribe for an additional amount of the capital stock of the Reserve Association equal to 20 per cent of the national 5