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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parts of Acts inconsistent with this provision are hereby repealed.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

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