9
THE CHICAGO BANKER
November 20, 1909]
All Forms of Surety and Casualty Insurance in One Company
CONSOLIDATED
CASUALTY
COMPANY
IN THE HEART OF
AMERICA
ROBERT B. ARMSTRONG, President
OFFICES: Entire 18th Floor, Majestic Bldg., Chicago, U.S. A.
Capital
$2,000,000
Surplus
$2,000,000
Deposits
$33,000,000
We solicit accounts of banks and bankers and otter them our complete facilities tor the handling ot their out-oi-town items
W. B. WELLS, Vice-Pres.
J. R. COOKE, Asst. Cash. R. S. HAWES, Asst. Cash. J. F. FARRELL, Asst. Cash.
C. H. HUTTIG, President
G.	W. GALBREATH, Cash. D’A. P. COOKE, Asst. Cash.
H.	HAILL, Asst. Cash.
jMtonal tSanfc of Commerce tn Jlcto fork
is prepared to transact all branches¡ of domestic ant! foreign banking, accounts are solicit«) from banks, bankers, firms, corporations anb inbibibuals, tofjo map relp upon courteous consiberation anb the berp best terms that are consistent toith goob business methobs. Corresponbence is inbiteb. Capital, Surplus anb Ulnbibibeb profits ober
$40,000,000.00	___________
like the national banks of the United States. I am not one of those who say that the Americans are incompetent as a whole to organize a national clearing house bank, in which the stock will be held by the banks of the forty-eight states of the union and the stock so controlled by the various local interests of our country that it can never be made anything but a (people’s) national bank, with its stock so distributed and so guarded that its control would be impossible by any special interests. Its stockholders so distributed would command the support of public opinion and the confidence of all sections of the country. In Europe, the central bank is the bank of the government and has proven in many crises to be more stable than the government. The government must have an agency in time of stress to borrow from, and in 1861 our government finances were in great peril and were rescued by the banking house of Jay Cooke & Co., which was not equal in capital or strength to some of our great banks in Kansas City today. It is not right to leave the government to the mercy of an individual or corporation. A great bank can possibly be of more value to the government than its present magnificently equipped navy.
The Bank of France before the war of 1870 had issued 1,400,000,000 bank notes. The French Assembly voted on July 18, 1872, authorizing this bank to issue 3,200,000,000 of bank notes, and kindly remember that the power and strength of the bank made these notes equal to gold. Similar incidents have been enacted in England during the past century. Parliament during several crises authorized the Bank of England to issue its uncovered notes.	The
Reichs-Bank of Germany is permitted any time, without notice, to issue $3,000,000 of its bank bills for every 1,000,000 deposits of gold and silver and holds itself in readiness to issue emergency currency when proper deposits and securities are made. Here you have clearly and definitely the first principles of a central bank. The functions of this national clearing house bank will be for the purpose of having a uniform (Continued on page 21)
foot-ball of our finances. It has been the history for centuries that the solution of these great financial questions has been by monetary commissions. This country has appointed a com,-mission which should command the respect, confidence and attention of every banker in the United States. Yet, what are we doing? We have already commenced a systematic political attack on this commission, trying to create an unreasoning prejudice against any plan that the commission may report and we intimate that the report will be fraught with great danger and disaster to our nation. From many of these critics I read that the French Bank is a monopoly, yet they admit that its currency is absolutely stable and beyond suspicion, the rate of interest is the lowest in the world and that the Bank of France is the largest owner of specie in the world; that Napoleon, one hundred years ago, through his secretary of the treasury, framed in less words than I have written here a banking law which has stood the test of a century and its usefulness to the people has made this great nation the wealthiest country of all Europe. And why? Simply because France has the lowest rates of interest of any country and has a right to the large issue of currency, which is the only system which develops trade and commerce and assures agriculture. Its currency is the most secure, because it is based on a gold and silver reserve. The American statesman admits and acknowledges every fact given here. In face of all these truths, he says that a foreign banking system is all right for Europe, but is not to be considered by the American people. Now, what are the facts? These great banks in Europe are owned and are absolutely controlled by the government and the people, and the stock in these banks is owned by individuals of the nation, just
CAPITAL & SURPLUS
$1,000,000
Pays a rate of interest consistent witgood banking
Treasury than all these nations combined, yet by reason of our defective and inefficient currency system this rich nation was compelled to go to England and borrow $100,000,000 to weather the financial storm of 1907, when it was clear to the entire people that we had five times the gold in the United States Treasury that the nation of England owned.
In 1890, we had a political demonstration in Hutchinson representing the! voters, which was four miles in length. Every kind of vehicle to illustrate the various interests and industries of our country was in line. One particular float in this grand parade was a hay wagon filled with youth, glowing with health and strength, representing the power of the agriculturist. This float was drawn by twelve horses. Then followed a single one-horse buggy, with top slightly drawn and only a peep-hole for the lines, which were attached to the hay wagon and represented the bankers as holding this grand load of toilers of the land in check with a single halter. The idea went further—that this glorious land of ours was in possession of Wall Street and controlled by the Eikleheimers and the Rothschilds. You all know the history of this fable and its ludicrous end:—That the plutocrat of this country to-day is the man who thought in 1890 that he was oppressed and in slavery. If I do not misunderstand the situation of the present day, we are virtually making a political warfare on all prominent men who are giving the best efforts of their lives formulating plans to elevate the people, helping to formulate laws which will, in time, place our financial system on a par and equal to that of other civilized nations.
That the present system is wrong, no one denies. How it will affect my personal interest or your interest is not the pertinent question. This is a national issue and we must study this great question and help to solve it as patriots for the good of the entire country and as a nation that has suffered great financial losses by reason of its vicious monetary system. I do not believe that this nation is inferior in intelligence or ability to any other nation on earth, but in our state and nation the tendency is to make a political