perfect currency bill right away. We feel that the present bill cannot but put the finances of the country on a more solid basis, and if this is done, it naturally follows that it will be a big aid to our national prosperity."

Echoes of the Bankers' Convention were heard from many quarters. Mr. R. M. McKinney, Cashier of the National Bank of the Republic, Chicago, Illinois, remarked: "I feel that if Congress would accede to the suggestions made by the Bankers at their conference in Chicago in August, as to reserve, it would make the bill workable and, in the main, satisfactory both to banks and to business interests, and prove of great help to the commerce of the country.

"There is no question but that the rediscount feature contained in the GlassOwen bill is of great value to banks; and in my opinion the concession I have named would not interfere with the fundamentals of the bill, and could readily be granted by the administration without sacrificing anything of principle."

HERE is a plea for the central bank, by

Mr. W. D. Vincent, Cashier of the Old National Bank, Spokane, Washington: "In June, 1908, as President of the Washington Bankers' Association, I advocated the enactment of a law establishing a central bank, believing that the United States had grown into a world power and must do business on a world basis. The world basis of settlement is gold, and that is the only lawful money recognized by other nations. The only successful banking systems are along the line of a central bank, and sooner or later this nation must get in line with the great nations of the world by adopting methods in use by them, tested by them, and proven to be the method through which the greatest efficiency of a circulating medium is attained."

From California came this brief statement, by Mr. W. B. Clancy, Cashier of the Security Savings Bank of Riverside: "The Currency Legislation is of vital importance to the Western States, and we hope the new law will absolutely provide for Federal Reserve Banks here, and for loans on our commercial paper in times of need."

The Cashier of the City National Bank, Duluth, Mr. H. S. MacGrew, had a word to say in deference to the views of bankers and the public in general: "The Democratic party, as represented by the President and his advisors, are undoubtedly determined to make a record in office. With this determination in view, they have enacted the tariff bill, thus redeeming one of their pre-election pledges, and are trying to force the hurriedly prepared Glass-Owen bill through Congress. While this desire to secure for the business interests of this country a scientific currency system is commendable, their attitude towards those who are engaged in financial operations in this country, and who therefore should know or should be expected to know something of the laws and customs of finance, is not so commendable. A much more free range should be given to public discussion on this matter, and particularly more attention paid to the conscientious opinions of bankers of the country regarding the proposed legislation."

"Banks should have at least three representatives in the Federal Reserve Board," wrote Mr. George Woodruff, President of the National Bank of Joliet, Illinois. "Note issues should be the obligation of the regional banks and not of the United States Government. The regional banks should be less in number than the twelve originally stipulated. State and municipal bonds should not be dealt in by the regional banks, whose investments should be in short-time paper. Reserve banks should not, if possible, compete in the open market in buying paper which it is the province of their subordinate banks to deal in and re-discount in the regional banks when necessary.

"Provision should be made to purchase all United States bonds held by National Banks, which do not choose to come into the new arrangements. The deposits of savings departments are properly loaned. out among those who deposit them, and should not be confined to certain outside bonds and obligations. We feel that the administration and Congress are to be heartily commended upon their activity in the campaign for currency legislation, which was started so many years ago by the bankers, and we look forward to the

passage of a law that will be workable, fair and in the best interests of all classes."

The Citizens' Bank, Higbee, Missouri, by Charles C. Hin, cashier, believed "that bankers should form the Reserve Board; that so large a percentage of the capital of the bank should not be deposited with the regional banks; that not more than from four to six regional banks should be created; and with the stock left open to public subscription." Would prefer one central bank with many branches and the national banks allowed to handle a certain percentage of farm loans; but on the whole admits that a change is necessary and is likely to benefit the country in the end.

A MODEST letter from the Farmers'

Savings Bank, Mineta, Virginia, signed by John C. Walker, Cashier, recalls the statement in the Senate of Senator John W. Weeks that the bill was "seventy-five per cent good." "While we would be glad to give you our views on the Currency Legislation," said Mr. Walker, "we feel that as we are only one of the many hundreds of little country ten thousand dollar banks, ineligible, on account of our size, for membership in the National Reserve Association, that whatever views we may have will be of little worth.

"We believe many of the provisions of the Currency Bill are unsatisfactory and unfair, but at the same time, we think that it is dangerous to hazard the passage of a bill that is in the main good, with chances of another 1907, without an attempt having been made to prevent such an occurrence, in which case the parties defeating or retarding currency legislation will have to answer to the people of the country, with the possibility of a far more radical bill, to which none of their offered amendments would be given a thought."

A terse statement from Mr. W. A. Taylor, Cashier of the First National Bank, Hastings, Nebraska, shows how they feel about the new bill in the home state of Secretary Bryan. "Possibly we can best answer your question as to our views on this matter," wrote Mr. Taylor, "by saying that if the Glass-Owen bill becomes law in the form in which it passed the House, we will doubtless surrender our national charter and become a state bank."

Still further echoes of the panic of 1907 are heard from the Bank of Hamburg, Iowa, Mr. B. G. Franklin, cashier: "The writer is of the notion that every country banker who went through the panic of 1907 is down in his heart very much in favor of the currency legislation. Of course, we all differ in some points of the proposed bill. Personally the writer thinks that the administration measure, as presented, more nearly meets the needs and wants of the vast majority of the people and banks than the so-called 'Vanderlip' measure as written."

Mr. Henry C. Burnett of the Chicago Savings Bank and Trust Company considered "our central banks the best form for business and flexibility of operation. Reserve requirements are extravagant as compared with those in England. Notes should not be government obligations. Compulsory membership of banks is a grave error. The question of control by bankers or government is a minor consideration."

THE need for revision of the former

currency legislation was reiterated by the Hope Deposit Trust Company, Independence, Missouri. "In our judgment," said this bank, "we are greatly in need of revision of our currency law. We are not particularly pleased with the present bill, but hope that something will result from the present agitation of the subject."

The Delaware County National Bank believed that the National Bank system should be retained but modified to suit new conditions. "The proposition of the pending bill," stated the cashier, Mr. Charles H. Church, "is unfair, in that it secures National Banks only and does not apply to the eighteen thousand state banks and bankers, whose deposits and reserves much exceed those of the National Banks."

Mr. Church believes in "a Central Reserve Clearing Association with bankers in each state, which, under control of the federal government and available for both National and State Banks, are to be responsible in a body to the United States for all advances or discounts to their members."

A more exhaustive analysis of the new bill, as the bankers see it, came from the

President of the First National Bank, Corvallis, Oregon.

"There are many things in the new bill which are very excellent," believed Mr. Woodcock, "but other things in it will kill the National Bank system, destroy it absolutely, in my opinion. It will place National Banks at a disadvantage, giving State Banks the entire advantage.

"It would be different if they would leave it optional with National Banks to invest what they could afford to, in the Federal Reserve Banks, and place so much of their deposits therein as they could afford to. If this were done, the rest of the bill would not be so bad.

"The law would force an investment in the Federal Reserve Banks, taking the several amounts out of the communities where they belonged and into foreign territory; from Corvallis $70,000; from Eugene $140,000; from Salem $165,000; and from Portland, Oregon, $2,465,000. It will take from the entire state of Oregon $5,006,500.

"These investments under the law are permanent, fixed investments. The investing bank cannot lessen them at any time without surrendering its charter, which is contrary to all laws heretofore ever heard of on banking investments.

"Heretofore we have been taught that banking investments, either of capital or deposits, should be temporary, short time, so that they would be liquid, coming and going, and not in any way fixed, so that the collections from investments would be coming in at all times to meet the demands of customers and depositors."

And what of the currency bill now? Three months have slipped by, and despite divergent opinions, the spirit of the nation is incarnate in the one word "Hope."

The records of the Treasury Department up to February show that practically all the national banks whose capital is $1,000,000 or over have applied for admission to the Federal reserve system. The amendments in the bill represent a sincere and earnest desire on the part of all concerned to make a success of the experiment, and these changes, chiefly due to the earnest work of bankers, have resulted in the co-operation of the national

banks in the new system, and European bankers have also expressed their approval. It is felt the bill will result in making the United States the greatest discount market in the world, with only the possible disadvantages of politics creeping into the Central Reserve Board.

The American method of handling commercial paper, begun fifteen years ago, has resulted in a revolution in commercial methods in England. It has brought the United States to the forefront as practically the only exclusive cash-paying nation. Commercial houses pay cash and secure a discount, obtaining the funds by selling their own notes through dealers and banks.

The financial situation of today is unprecedented. The growing demand for capital is world wide, and the government, the banks and the general public must unite in earnestly trying to solve this perplexing problem. The banks have generally joined the procession, and have shown the right spirit.

When a law is passed the bankers have proved that they know how to obey, as patriotic citizens, the statutory mandate of congress. The one imperative, unanimous demand was for a new currency bill, and while all could not agree and the present law may have its imperfections— a fair trial will bring the test.

A further symposium from bankers and business men in all parts of the country will be an interesting study. Every banker, business man, manufacturer, salary or wage earner is invited to send the NATIONAL his views on the operation of the currency and tariff bill, to be published as the evidences of the results accumulate. Get your thoughts together and note changes for better or worse, and let us hear from you for the next budget.

It is becoming more and more apparent that as long as our political leaders keep in touch with the subconscious public sentiment they will not go far astray. As these letters from bankers reveal, in spite of uprooting the traditions of fifty years of national banking, as proposed by the bill, there was a patriotic purpose in hoping for and maintaining at all hazards the welfare of the country, as the vital point and the first consideration.

I1

T must be evident to every thinking

man and woman in the country that there has not been a crisis in the public affairs of the country of a character to localize and embitter political controversy within the Republican Party of the South. Notwithstanding this, practically all the delegations from those States are in question at each National Convention called to choose a Presidential candidate.

With the knowledge of this situation in mind I undertook in 1908 to handle, in the interest of Mr. Taft's candidacy, the contest situation in the South. I felt at the time that a great deal of the bitterness which was the outgrowth of the method of settling the contests at prior Conventions had been due to a lack of thoroughness in presenting the contests to the National Committee. I thereupon determined to prepare the cases in accordance with lawyer-like methods, supporting my contentions in behalf of delegates chosen for Mr. Taft by an abundance of proof gathered on the ground and placed before. the National Committee in the form of affidavits.

There were listed with the Secretary of the National Committee two hundred and twenty-nine contests, of which two hundred and nineteen materialized. Each member of the National Committee and especially the older members of the Committee expressed their alarm over the situation in the Party which seemed to encourage, or invite, an increase in the number of contests at each National Convention.

Although President Roosevelt was actively supporting the candidacy of Mr. Taft, he and Mr. Hitchcock, Mr. Taft's manager, expressly required of me that only such cases as I considered meritorious should be prepared and submitted to the National Committee. Mr. Hitchcock was painstaking in his efforts to advise me as to the situation when I undertook it, and repeatedly counseled with me as the work proceeded.

I spent months in the South, traveling from state to state, and from district to district, familiarizing myself not only with the facts in each particular case, but with the atmosphere surrounding the situation.

an active Party organization in many of the States, with the attendant result, a great falling off of the Republican vote, due not only to disfranchisement of the negro, but to bitter personal differences among so-called leaders, growing out of the distribution of the spoils of office. The National Committee took no decisive action in respect to this condition.

The procedure of the Republican Party requires that all the cases tried before the National Committee shall be re-tried before the Committee on Credentials of the Convention.

Senator Smoot, of Utah, was appointed a member of the Committee on Credentials. He submitted patiently to the details of the various cases until the State of Mississippi was reached, whereupon he demanded that three districts in that State be entirely thrown out, on the ground

that there was absolutely no evidence of the existence of a Republican Party in those districts.

Later this reprehensible situation was again aired in open convention, as had been done in several previous conventions, in each succeeding one of which an increased number voted to reform the party procedure and change the basis of representation which made such a condition possible.

In 1908 Mr. Burke, of Pennsylvania, proposed a resolution to change this system, which resolution lacked forty votes of being carried. Had the Burke resolution been adopted the sordid story of the Convention of 1912 would not have to be told, and the Republican party would not have been divided.

At the conclusion of the contest hearviews of the situation to a representative ings, four years before, I expressed my of the New York Tribune, in an interview published as follows:

Integrity in the election of delegates to attaching an honest value to each seat, treatthe National convention can be obtained by

ing it with the same respect, irrespective of the part of the country from which the delegate comes, and then refusing to barter the seat of any delegate for partisan purposes. I affirm it as an obvious proposition that as long as the Southern delegate knows that his seat may be used to trade with for partisan advantage he cannot respect it as does the delegate from the North, and that only when his rights are absolutely respected will there be removed from the selection of delegates from the Southern States that element of hazard and gambling that results in the multiplicity of contests which continually plagues the National Committee.

Now, at the bottom of conditions which make such a program possible, there is the feeling that a Southern delegate does not represent a constituency, that such value as attaches to his seat is purely material. And in the North there is a lack of respect for the seat occupied by the Southern delegate, because it means a vote from a man who represents a district which will contribute nothing to the election of the candidate his votes help to choose.

I would take the electoral vote in an average northern Republican state as a basis for calculation and apportion delegates to the Southern states in proportion to the vote they cast for the Electoral College. That, I am convinced, would serve a dual purpose. First, it would afford an incentive to the people of the South to get out their vote, and, second, it would constitute a palpable