TUR OMAHA DAILY REK: FHIDAV. NOVEMHKU 2:1.
ASSET SYSTEM WINS
- t tiiect Tiiunirbj Cvt-r Advcoatei
rf Credit Cnrreicy i Irt.
DR. f. L.' HAIL tUCftO PRESIDENT
larmt AOendaKrr in History of
A-latloa at thr lontratlon
Resalntlnaa, an Drain of
Herman KynanOr.
iContinued from First Page.)
I r .
tuiry in the Mate fctween and ISM.
He remarked that Instend of smiling to
New nrk for money to move the crops of
the state, Nebraska Is now loaning money
to the metropolis
The attendance at thla convention was
the largest of any In the history of the
oiganixaJinn.. There wre 4-Tft delegate
registered.
lwcy Name (umniKlrea.
Pr!dent Howey appointed the following
committee ' on. nomlnatlonii: George L
Meirner, Crete; O, F. McOrew, Omaha;
Charles K. Hart, Prossor; J. W. Welpton,
Ogalalla; H. A. Cheney. CrelRhton; Frank
licGlverln, Fremont; R. 8. lilting, Alns
arorth. Jullu Beckman wu reappointed to the
educational committee, J. W. Stelnhart of
Nebraska City and V. B. Caldwell of
Omaha continuing on unexpired term. 8.
H. Burnhsm of Lincoln wag reappointed to
the committee on national legislation.
Henry W. Yates of Omaha and n. 8. Ris
ing of Alnsworth continuing. A a mem
bership commute the prealdent appointed
Carson Hlldreth' ; of Franklin for three
rear, J. W. Welpton of Ogalalla for two
year and Thomas Murray of Diinhar for
on year.
Authority was given the president to ap
point delegates to the conventlona of the
National Bankers' association.
Following the report of the educational
aommlttee, recommending the establishment
of a department of commerce and hanking
In the University of Nebraska, C. J. Ernst,
a regent of t;.o university, informed the
convention that such a department had
been In operation since the opening of the
Institution In September,
In an address on ''The Modern Tendency
of the Public as Regards Banks," F. H.
Clarldge of Bliiir dwelt on the duty of the
bankers to consider deposits In the light of
a trust fund, even though -the courts rule
that the relation of banker and depositor
la merely that of debtor and creditor. He
declared the idea o( the. bank should be to
make Its deposit .safe first and make
money . afterward. The only tendency on
the part of the public in the last forty
yearn toward the banks, he said, is to de
posit money In -them. '
WHAT tntOftltKaSIVF. I1AJK.EH 1
efanll lvea by taraoa Hlldreth
f FranVlla State Rank.
"The. Progressive Bunker" was the sub
ject of the address by, Carson' Hlldreth,
president of the Franklin State bank. In
part Mr. Hlldreth suid:
The banker la no longer merely a negative
force In his community. In this day he
must till a larger place. In former times
his functions were of a preservative or con
servative character. Today his preroga
tives are of a creative or constructive na
ture. Formerly his qualifications were in
the line of thoughtful care. In-this wireless
a he must have a courageous aggressive
ness. In the beginning I wish to make it clear
that I do not have in mind the self-lnterrst
tf the bank and banker, the growth of de
posits and profits; but rather the economic
Clace In the community that the bank and
anker must till. A generation ago a bank
waa relatively Jittle .uwtU;. today it Is the
organ throimh -hlct -pulsates the arterial
blood of thi camniunlty a-vital affairs. A
core of vein s lvk a hank was a place to
which the .community-carried Its funds for
aafe keeping: today ll Is the. Vlace to which
the community goes with Its needs. Then
a bank wu looked upon as a strung vault
and a steal. cheat: now- the people feel an
Intimate relation to it and a sense of own
ership of It.
Communities have 1 changed. In those
days the people made hut Infrequent use of
the bank and looked upon It as a deposi
tory alone; in these, days It Is the people's
clearing huuae; they use it dallv and hourly
and their credit there la their chief resource
and their, main aet. ,
Bankers have chanced. In earlier days
the concern of the banker was carefully to
guard the funds placed In his keeping and
return them on demand; in these later days
the bank undertakes to provide the means
unon which businesses are created and by
which the material affairs of the commu
nity are developed, ttpon the Intelligent
conduct of the bank if todny depends in a
great measure, not only the aafetv of the
depositor, as before, but the prosperity of
the bank's patron and the welfare of the
Community. -
Conaervotlsm today means progressive
conservatism; It means Intelligent agares
alvenesn; It means the comprehensive grasp
STOP, WOMAN 1
AKD CONSIDER
THE ALL
WMSTANT PACT
Tht ta addraaa-
lnf- Mrs. Pisk
hsm yoTi ar con
fiding you? private
Ills to a woman
woman whosa erper!-
nee with women's dis
eases covers a great
kustay years.
Mrs. rioknam is rn
4 an rb,tcr . In law of
LyuTa . Prnkham,
and for msny years
vnderherdireotloa,
and since her da-
oaae.hha been f,-Ji. .
adrlslnf sick wo- ff iffit A
wen free oioharge. ' .' jJ 'j I '
nit; souei
suffer In silence and drift aloes; from
bad to worse, knotting full well that
they tight to have Immediate assist
ance, but a natural modesty Impels
then to shrink from exposing Vhem
salves to tha qaestioas and probable
examinations of even their family
physician. It Is unnecessary. Without
money or price you can consult a wo
man whose knowledge from actual ex
perience is (rest.
Mrs. Plnkharn's Standing Invltstloa.
Women suffering from any form of
female weakness are Invited to promptly
eotnutnn irate with Mr. Pinkhsm. at
hyan', Mass. All Inters sre received,
opened, read and answered by women
only. : A woman can freely talk of her
private tUneas to a woman; thus has
been established the eternal confidence
between XI re. Pinkhsm and the women
ef America whkb has uever been
Broke a. Out ot the vast volume of
es-perienee which sbe has to draw from,
it is mors than possible that ahe has
rained tba vary knowledge that will
kelp your ease, (she asks nothing in
return except yovr rood-will, and her
edvioa haa relieved thousands. Sure It
any woman, rich or poor. U ery foolish.
U she doe not take advantage of this
generous offer af assistance.
If you are 111. don't hesitate to get a
bottle of I.ydla K. Flnkhsia'sVepetable
('tnpoundetonoe, and write Mr link
ham. Lynn Mass , for special advice.
When a medicine has been snorcaefal
la restorina; to htslth so snanv women,
vou csjuuof well ur without trying it,
1 5 owl Wiev it will Lelp oiu "
v fv
a-d the Tftnn a power behind It. We must
give our olil reliable friend, the rnnsTva
t've hankT, a new lltli -the progressive
banker. The pro resolve banker must have
all the quiiHflrations of the old-time con
B"rilve honker caution, thoushtful and
Intelligent enre. courage and character, but
he must add to his iijallflcjuons aitgres
alveness; he must enter the arena of af
fairs The world moves. The world of events
goes steadily forward with a force Ir
resistible and lainkein must recognise and
meet changing conditions fust as men
recognfue find meet changing conditions In
Other fields.
Inruinltent nponthe banker is one of the
most potent and important economic func
tion In modern conditions :ind that la the
gathering up of the surplus nrnlngs of the
leple and throwing th'in brk Into trade
and into the development of the Industries.
This can be fully done only by educating
fie people to understand the profit to the
banker of their small deposit and the
economic value to the community of their
deposits In the aggregate.
About h year ago I m.de a test of the
fart Just stated by sending out a circular
letter In lil h . appeared the following
paragraph :
"The bunk appreciates small accounts.
ro not carry the money aro ind in your
pocket, but put it In your deposit at the
banlt ni'h day and check It out ns needed.
Men often curry monev In their pockets
without thinking of the henelH It would
be to the bank. If 100 men who carry S.'O
each In their pockets would all keep this
deposited and cheek as nded It would
mean 2,0co additional deposits for the
bunk. There are m;iny thousands of dollars
todnv in the pockets and In the homes of
our friends that would be of value to the
hank and lo the community If it were de
posited In the bank and put Into circulation
In the community. Much of this idle money
is not purposely withheld, but It Is because
thesa friends have never thought of the
bank and community side of it. 1 cordially
Invite vou to carry Hn . account with us,
however, smsll It may be. Tills will lie
of value to our bank and of benefit to the
community."
For days and weeks following the send
ing out of the above circular Iptter -men
continued to drop Into my bank and make
$:0 deposits. The response became so
pronounced that It touched a tender spot
and made me feel a closer relation and
greater obligation to my depositors because
1 saw In this response a genuine friendship
for my bank and a desire to subserve the
general community Interests.
The vaat percentage that the hidden cur
rency and coin bears to our actual bank de
posits is the problem of the present. Much
of the drawing out of this hidden money
and Insuring It to commerce and the In
dustries depends upon the proper develop
ment of the banking business. The banker
thus has an exceedingly important economic
place to fill. It Is the progressive banker
who understands this fact, and, by intelli
gent, systematic care, undertakes to fill
this plu.ee.
The progressive banker has other rela
tion to the community than those or a
material nature. The progressive banker
of today must h the- nature of things be
a man of Intelligence and ability and a
man with high ideals. The citizen with
these qualities has no right to deprive Ills
community of the benefit of such qualities.
The banker who devotes ail his thought,
skill and resources to the increase of thu
earnings of his bank Is a selfish bunker,
ungrateful to the community from wnlch
he gains his business. There Is a law of
compensation and a community has a right
to expect from Its businesses and citizens
a Just return for the benefits such busi
nesses and citizens draw from the com
munity. Bankers should be conservative, presi
dents and governors should be conservative,
but conservatism does not spell policy,
fear of injury to political chances or busi
ness interests. It does not mean that
either president, governor or business man
shall stuy out of the activities of men.
Bankers today are concerned In proper
bank legislation, legislation that will not
only facilitate and protect banking, but
will safeguard public Interests.
In passing I cunnot forego digressing a
moment In which to say that, while Ne
braska bankers have long discussed pos
sible measures to protect depositors of de
funct banks, It behooves them to follow up
this discussion with persistent efforts to
reach the correct solution of the problem
and have proper laws passed. There are
three reasons for this: First, that our
banks may draw into their vaults the large
Increase of deposits which will surely come
when the people know there Is absolute
security to them; second, to prevent the
government from going Into the banking
business, which may result If we fall or
neglect to provide this absolute security
that the growing public sentiment is going
to demand, and, third, to Justify our claim
that bankers themselves are undertaking
to secure legislation to guard the public
Intel ests.
AGAISST POSTAL.
SAVIG( DA Mi
1 ..'if
Carioa Hlldreth Says System Mould
Be Great Kconomle Mistake.
Carson Hlldreth, president of the Frank
lin State Ixiuk of Franklin, Neb., who Is
one of the prominent de-legates to the
bankers' convention, believes tha United
States government would make a serious
mistake to go into the banking business,
as he terms the enactment of laws provid
ing for a system of postal savings banks.
In speaking of this proposition, so popular
in Nebraska, favored in congress by both
John L. Kennedy and Gilbert M. Hitchcock,
Mr. Hlldreth said:
It Is not a question whether such a sys
tem would work an injury to the present
banking Interests, but whether it would
' In Its entirety benefit or Injure the com
munity Interests
"A postal savings bank syste mis a pa
ternal system and tha government should
ana wis government suouia
no more go Into the banking business
than U should o Into the mercantile bus-
lness. If It be said that the government
is already In the banking business in Its
postal money order department, I reply
that the transmitting of funds from point
to point Is but an Incident In the bank
ing business.
"A postal savings bank system would be
th greatest economic mistake this govern
ment ever committed. What matters It If
Wale, Italy, Austro-Hungary, Sweden and
Russia adopted postal savings banks back
In the '70s and '80s? The government of
many of these countries is paternal; ours
la not paternal. The Industrial, social and
political conditions in those countries are
not the same ae in our country. The fact
that these countries long ago adopted the
system, In the light of their limited eco
nomic development, Instead of auguring
tor such a system condemns It.
"A postal savings bank system such a
proposed In the various bill before con
gress, if successful, as their advocates hope
and expect, would gather up the multitude
of small amounts in our various communi
ties and take them off into distant places
for Investment. Carried to its logical end,
the earnings of a community would
never find their way Into our local banks
to be turned back Into the activities of the
community.
' "Incidentally, most of these' bills provide
that the deposits ahull not be subject to
taxation. Why 'should we take this much
wealth out of the taxable property ot the
community and thus double the taxation
on th property of those who did not
patronise th government bank? Most of
these bills provide that the deposits shall
no, be subject to legul process of law.
Wby should we want to put a handicap
cn th business matters of our communi
ties? V. hy should we seek to create and
encourage an Irresponsible class of men
and enable them to put their property
beyond the reach of their Just debts?
"As campaign arguments these features
nuiy serve a purpose, but on any other
ground they ar not Justified. Such a sys
tem In effect would disrupt tha present
financial order ot things In our country
and set us adrift on an untried a.id
troublous sea. These bills emphasize Just
two things safety and thrift and - $ far
as 1 hsv been able to find .SiMuiutely
nothing else."
V tTKI ON' PHOTKCTINU nF.PUSITORS
Hrlnrai la Clerical Methods Sug
gested Gd Sraesa.
"I'rotection for Bank rk-positors" waa the
subject of an address by Henry W. Yates,
president of the Nebraska National bank
of Omaha. The recent and almost simul
taneous defalcations in Chicago and 1'hllu
delphia, he said, have aroused the people
to the Ixl ut that there is no safety what
ever in bank. Several remedies have be. n
fiiggested to proiett lu iVpoBllora. One 0
lima U lu i.uvw the pateis lu Lie LnUV
possession examined by experts. Another
remedy proposed by the people Is to In
sure the public snd to compel the banks
to pay for this Insurance. The speaker
pointed out that this would only result in
a multiplicity ot banks and an Increase In
m!ld-eat finance. He believed that n. strict
snd rigidly systematic method of doing the
clerical work of the hank would provide
the greatest safeguard against tampering
with the people's money.
ADDRKSI
F
l)KA
JOII(
( arrenry (imposed of Two F.lemeate,
Credit and hold.
The address of Prof. Joseph French John
son on "The Currency" was one of the most
interesting and notable events of the con
vention. It took rank In prominence with
that of former Comptroller Kckles. Prof.
Johnson Is dean of the New York Univer
sity School of Commerce and secretary pf
commerce and one of the leading authori
ties on financial questions In the I'nited
States. In port he said:
Our currencv Is made tin of two ele
menis, money and credit, gold and promises
to pay gold. Borne of these prmm "
thine promised. Here we have the hist
debatable question In our currency. Is it
wise or safe for the country to do business
with a currency over half of which con
sists of government promises stamped on
paper or on silver? Tills Is a question 1 am
not going to discuss. There was a time
when It was a very live Issue, but at pres
ent it seems to be academic. We have the
greenbacks and we have the silver dollars.
It would be very difficult to get the Ameri
can people to consent to their retirement,
even though their existence were bringing
on practical evils or giving us the throat of
a panic. Fortunately, however, the green
back and the silver dollur are steadily los
ing their power to do mischief. The stock
of gold has Increased so rapidly during the
last ten years that there need be little fear
about the government ability to redeem
them on demand in the future.
Why should not all the currency be gold?
Why should there be any credit nt all?
There are two reasons: (1) credit is a
cheaper currency than gold; 2 credit Is a
more flexible currency than gold. The
stock of gold In a country at any time Is
flxd. If there is an Increase In the amount
of buslneas done and in the number of ex
changes made, there can be no sudden In
crease In the stock of gold. Credit, how
ever, being a mere promise to pay gold, Is
Me of arreet exnansion and contraction,
so that It can furnish a currency which con
forms exactlv to the needs or nusiness. jm
the I'nited States we have this quality of
credit beautifully illustrated In what Is
called deposit currency. The currency con
sists of checks and drafts, and It takes the
plana of money In all the large business
transactions of this country. It is Issued
with perfect freedom. No man when he
writes a check is obliged to deposit .any
bonds or other collateral as a guaranty that
It will be paid. If the law should impose
any such restrictions upon the writing of
checks, business would be greatly Impeded.
The currency Is good because It la con
stantly subjected to the test of redemption.
Our bankers have established clearing
houses in all parts of the country and have
brought themselves Into such close rela
tiotiHhlp that all checks sre hurried to a
clearing house for redemption the moment
their work has been done. As a reeult the
volume of deposit currency expands and
contracts with the needs of business. There
Is never too much of it In existence and
never too little. It Is created at the instant
It Is wanted, and It passes out of being the
moment It Is no longer needed. This quality
of deposit currency we call Its elasticity or
flexibility, and It is a quality which money
does not and cannot possess, for the amount
of money is hxed at any time and cannot
be Increased at the will of a bunk or at the
will of the government.
The check and the draft, however, cannot
be used as substitutes for money in all
transactions. There are many people In
this country who do not have bank ac
counts, and among these people the check
Is not a convenient medium of exchange.
When they sell their goods or their servr
Ices they like to rx paid in money naeii,
or in something wnicn possess ...
acceptability tor people or injunu i over tno country. In other words, the dl
hnnka have for centuries issued their credit , . ... , . ji...il
In a form different from the bank deposit
or the bank check. The bank deposit Is
merely the bank's promise to pay a certain
i. n i aki1j riuriu nuniiii i iu i
Individual a sum of money. tnis creou
the individual utilises by means of checks
which are, therefore, a combination of
Individual credit and bank credit. In order
to eliminate the personal element and so
produce a medlnm of exchange represent
ing pure bank credit, bunks early began
the practice of Issuing promises to pay the
bearer. These are now known as bank
notes. Essentially they are Identical with
a cashier's check payable to bearer. It
was soon discovered, however, that notes
of this sort representing pure bank credit
riassed current among the people as money
isolf. Then governments began to require
that they should bo engraved on good
paper In order that counterfeiting should
be difficult, and then, for fear tnat Irrespon
sible banks might issue such notes in ex
cess, governments began to Impose certain
restrictions upon their Issue. In England
these restrictions reached the extreme, for
there the law now declares that no bank
shall Issue notes payable to bearer except
In exchange for a sum of gold equal to the
face of the notes. Kunk notes In England.
therefi re, are ra-rely f;o!d cirtlftcates. The
are said to be issued in accordance with '
what Is called the currency principle, wmcn
asumes that five sovereigns In gold should
be behind every five pound hank note. In
the United States we nave adopted another
measure of safety. Here the law Insists
that a dollar's worth of choice collateral,
namely government bonds, shall be Uepos-
lted as security for the payment of every
dollar on bank notes. In other countries,
nmihiv in I'iinaHi nil France, the la w
' th noU.holder merely bv niacins-
I '& umn Upon the amount of notes which a
! bank may issue, and by providing that the
redemption ot notes shall be easy and in
expensive.
Here we have the currency question In a
nutshell. Which one of these three sys
tems Is the best We cannot answer tills
question without deciding first upon what
Is the test of a good bank note system,
is a rood bank note one about the con
veitibility of whli h there is no doubt?
Then the English system is the best. Or Is
a good bank note system one which yleld.i
a flexible note currency? If so, then the
Canadian and French systems are the best.
If bank notes are not to possess the
quality of flexibility or elasticity, I cannot
i cever unv reason why ihey should be
Issued at nil. The United States govern
ment Is able to supply the country with all
the paper currency It needs, for the secre
L.i, j u. mo tr.-aaury has t he authority to
Issue gold certificates In exchange for gold,
and silver certificates in exchange for
silver. With respect to our currency,
therefore, the important questions are. is
the credit part oi It flexible? If not, how
can It be made flexible?
1 think we are all agreed as to the answer
to thu first O-iejitlon. National bank notes
under the pieM-nt system of issue and re
demption are almost utterly devoid of that
viement of elasticity, of expansibility ana
contructlblllty, which renders our dejsisit
currency m serviceable. In the first place
me cuuuitiuns governing tneir
such that no bank puts tnem forth merely j between ,p "." and $V.K....u. You bank
to satisfy a temporary Increase in the need "h don t get It, for while you are pui.l a
for auch currency. A bank can see no
profit and no advantage In so doing. On
the cunirur), at a time when bunks are
losing cash because depositors are with
drawing it for use In making exchangis,
each individual bnk sees a hance of !o.ss
ruther than of gain In an increase of lis
circulation, femce it must buy bonds at a
prrmlJin, It must pay out more currency ! mis country, i.y tne m.n no are ma i
than it will receive back In the form of If'" ' sell the product of their
bank notes. Its own ability to supply cash I '"bo''- um1 lrt ' "?e ''" J"'1" on.
to Its customers will be lessened rather I hp Anfrlran, '""
than Increased. Again there Is the rl,SK I hi- gi.tln and callle In a market depiessed
that It will lose 011 the bonds, for the mar- j '' u nionetarv stringency. And to who in
ket price is uncertain. Should II issue moie B'les the gain or advantage? It goes, gen
notes than ll can keep constantly In circu- tlemen. to people on the other sl.te of the
la lion. It may have to sell th. bonds t ! Atlantic ocean who buy the agricultural
los. As a result, banks do not Increase i Products of the I nited S'' , hel M
their circulation un.ess they think that ,rom 1 to I7' cnt. less thsn they would
bonds are a good lnvmim.-nl nnd that the 1' " P- our lmp-tant uioiier nmr
growth of the country will abaorb tne new ket were not in a state ot seml-p nlc
nolca. I'nder these circumstances they are i Thus the currency question s much more
lii,ng to have expansion, but under ,,0 than a latnker s prohlenv It is a inot er of
circumstances Co they want contraction I consequence. Yet I immed.a elv
forced uloii them 1 relate to the use of Iwnk credit, ond is
This leads me lo speak of a second de- popularly sup,K.ged to be a concern of the
v........ ,.,, Cli-aii i nuuae
tor ua.iK noiea ami mat Is at Wafchuur-
. ...... ,
ton. and Is managed ly the aovernment.
As a reull the redemption of bunk notes Is
such a i.o and expenai.e process that
their voi une does not proin.. contract
when thu country's need for currency is
decreasing. Many bankers. Indeed, feeling
that the noise are abundantly secured and
dikllkiug the delay and expense liichlent lo
reoeiiipuou. ueiinerately tieat the r.otes ol
other banks as if they were gold ilself and
count them as part of their lawful money
T .... , ,. ; advocated by trunk McUiveiin, preald-nt
inus w hav elasticity on the side of . ,, ,..-., , v . . ...
contraction ua well as on the side ol t-ot ,b Curumeri ial National bank of r re
punsion. Our nailoii.il bank note haa j muni, In an address on "Depository nnd
rer1? 'iri- . ,t"ur". '".this Important oi her Honda for Hanks." He showed that
regurd. It is not issued when needed, and . . , ., , .
la not retired when n needed. On Hie i the k""lttr re compelled to pay a rate
contrary, hunks are quite as likely to iu- j for bond which is out of all proportion
-r?,?l .l!.'1! ,"'ue h'" l'me" T. Uu" a I to the risk taken by the bonding companies.
when tlnit-a m r Biu.ti far ii. h..ii
bonds are often .-heap and bxhka then al-
as huve a surplus siot-k of monv in
.V'-,lr r""?'i ''!','" ' fory. genii-
years following the iwnle. of l.s:3 this c.iin'-
try had mi ffi of nwii-v mid In cunne-
J uuente urted many millions .f gold to
I ou nil ki.t'U what a trill' . I lime
i that was, and (W difflcu.t it itoi thu
government to supply the gold demanded
lor txpon. In tnst period of a redundant
money supply del our rational banks con
tract their circulation? Not st all. On the
contrary, government bonds being ctieop.
our tiatiKS actually Increased their circu
lation I nun llu.oo.iO) In isiii to .:I7. '".'"
In l.i'.ai. Again, cimsidor what happened In
the dull year following the sluinHsgo of
prices In hie,. There was no real panic, but
tor twelve months the great onward move
ment of this country's trade and Industry
waa checked, in consequence our stock of
money became excessive and brought about
a large outflow of gold, tr.e net exports of
thai loelai In V.'A amounting to Uti.uoo.ouu.
During that some dull year the banks of
this country, - Instead nt 'vontrni'tlne their
circulation, increased It by $.i;.imi,ii.
In my opinion, facts like these are a suf
ficient condemnation of the national bank
note. It is unsound In theory and has
proved a failure In practice.
What, then, shall be done? 1 do not pro
fess to know exactly hew that question
ought to lie answered, but It raises two
points about which I have most positive
convictions. In the first place, we must
sit down hard on the pure theorist, the
fellow who has a plan which In lis per
fections transcends the experience of bunk
ers In this and all other countries. A man
who is seeking to Invent a new use for
electricity or a new method of propulsion
for the steamship may theorize and specu-
,Htp and ,.. ' niucn , ne r.s.
He can do no harm and he may accomplish
some good result. Hut the currency of
country containing 9u."m0,0u0 people Is some
thing so Important, so vitally Interwoven
with the welfare of every man and woman
and child that no mere theorist or specu
lator or experimenter should be allowed for
one moment to tinker with It. There are
a thousand or more men in this country
who have "currency plans" In their pockets,
and most of them are theoretical schemes
which have never been tried In this or any
country. Many of them are suggested, In
deed, by practical men, but they are none
the better on that account. The question
Is a practical one and It must be settled
by appeal to experience.
The second point about which I am cer
tain Is this: The redemption of bank notes
must be made so easy, so Inevitable, so
Inexpensive that Inflation will be impossible.
The conditions of Issue and redemption
must be such that no national bank will
ever think of paying out the notes of an
other bank, or of counting them as part
of ita lawful money reserve. No bank note
system can be really sound and safe and
elastic unless the motives which compel
the redemption of notes are as powerful as
those which catise their Issue.
Now, In order that we may have a con
crete basis for discussion, let us consider
for a few minutes the recommendations
of the special currency committee of the
New York Chamber of Commerce. That
committee, after a study of the banking
history of this country and of the nations
of Kurope, was led to the conclusion that
the wisest and safest solution of our pres
ent currency problem would be reached
by the establishment of a central note
Issuing bank, managed by a directorate
responsible not to the noteholders, but to
the people of the I'nited States. This bank
should hove brunches In all parts of the
country, and there should be at least one
In every stute. The directors of this bank
should hold office for life, and should be
appointed by the president of the I'nited
States, and should be selected with due
regard to the needs of different part of
the country. The bank should be the finan
cial agent of the government in the col
lection and disbursement of public revenu' s.
The secretary of the treasury, indeed, by
virtue of his office, should be a member of
Its board of directors. -
I know the objections that are urged
ngalnst a central liank, and I admit that
they are of a character which renders a
dlRt-usaion of the subject somewhat acad
emic at the present time. It is objected,
for example, that such an Institution could
never be created in this country because
of the opposition of nutlonnl bankers. It is
assumed that the big bank would be a
powerful competitor of existing national
banks, .depriving them of public deposlis
and In various ways cutting Into their
buslress. In my opinion, the operations of
such a bank would Increase rather than
dlmlrlsh the profits of existing banks. I'ub
llc moneys would first be deposited In the
central bank, but that Institution ' would
not hold these funds ' idle In its vaults.
That monev would be loaned to banks ail
treasury surplus throuirhout the country In
......
accordance witn the laws pt business, and
would accept as security normal bunking
assets. This wmlltl' certnlnly be a tetter
method than the artificial r one now fol
lowed by . the secretary of the' treasury.
The banks of the country.' 1t would seem,
would be benefited rather than Injured by
this change. .As lpr the objection that the
central bank Would get business now going
to existing banks. ' it should be borne in
mind that the largei'-lnstitutlon would In
RN iiKcunooa cieai ore wun onnas. tnau i
nun liiuiviuuui". ll wouiu uwiiuiirw. o HI
popular reserve agent lor Vnuntrv banks,
but as the law should not permit it to puy
Interest on deposits,, the. money It received
from country hanks would as a result of
rediscounts noon find Its way Into the
vuults of national banks in' the reserve
pities. , . .
Hefore leaving this 'subject let me assume
for u minute the dangerous role of
prophet. I predict that within twentv
years there will bo. In the United States one
hanking Institution as powerful here as the
flank of Knglund is In F upland, or as the
Bar.k o' ilermuny Is In Germany.- This
bank will 'be either a people's bunk, one
created ny act or congress ana controlled
by officeis of the government or it will be
tlie .product of evolution and combination
among our private bunklngiintercsts.
So fitr rj the present congress Is con
cerned, however, It must be admitted that
the recommendation of a central bank of
Issue can have ho prucllcal result. He I tin
of this opinion, and believing that certain
; Improvements of th cm rency system might
! be made In (he near future, the Chamber
of Commerce commit tee presented a soond
I plan, whereby It is proposed that, national
j banks having a bond-secured circulation
equal to 60 per cent of their capital Khali he
permitted to Issue, without further dejioslt
of security additional notes equal In amount
to '35 per cent of their capital, such notes
being subject to a graduated tax. -In order
to prevent over issue of these notes the
rommittua recommends that they be re
deemable, hot merely at Washington, but
at all the subtreasurtee, and as h measure
of ju-otectlon for the note holder, it rec
ommends that the proceeds of the gradu
ated tax shall constitute in the custody of
the government a gimranty or safety fund
for the redemption of the notes of fi'lleil
banks.
In conclusion, gentlemen, let me remind
you that the bankers of this country are
not suffering most from the defects of our
currency system. The public has an Idea
that you bankers sre agitating the currency
question in order that you may get the
privilege of "p. nting money" and so In
criaslng your profits. This Is a mistaken
Idea. The hankers of the I'nited Slates are
a prosperous set of men today, and they
know now to take care of their Interests
during the autumnal pinch for money. A
high rate of Interest doesn't give the aver
age bunker much anxiety. Hut how about
the hunker's customer? Muring three
months of every year the business men of
this country puy from 1 to 2 per cent more
for money than thev would have to pay If
credit Instead of money were used to move
the crops. This means an absolute loss or
higher rate of interest, yet you have less
money to lend. In fact, no set of men In
this country makes a coi reviximllng gain.
It is as if so much wenlth were destroyed.
Yet there is a real gain, as there Is a rcil
loss. The loss is not borne by the bunks
ncr bv the men who borrow from bank.
It Is borne bv the producers of Weltn In
,.,.,,, ,j ,h Imiwlllnl mnllvs
. . " . v ..
I iiin.i it., n tiuii-ii.Tie mtirii rHiiier linn Mi
Interest.
MITIAI.
HOlilri CUMPASV PLA
Su.'h Organisation for rbraika Bank
ers Advocated li Mctilvrrla.
The organisation of a mutual bunding
j company among the Nebraska bankers was
Kor insurant against burglary the bonding
: coinpanirs hv received $i!,'An) in the lasi :
j av yt-ar from Nebraska banks, while thu !
losses paid in return have averaged only
I-.' (. Ilu pointed out thai bv the iiiiin.
lzaiion of a mutual association 'he N-
l-,nK- - -uK 1 ' lu 'l' staiul
the los by-defah-atirtis In Chicago, Phila
delphia, and nth'r large Okies.'
MURK ,MOF. FOR ( HKIIIT MKK
Dan rry Advoeate C arrenry te
form to F.nlarae Vol erne.
"What we wont la a change In our cur
rency laws and I 'oe'leve we will get It
this session of congress," said Dan Cvcp
sey. former state representative from Fair
bury snd president of three of four national
banks "of strong character. Mr. Cropsey
has been a delegate to the bankers con
vention. "I think thp volume of money
should be enlarged so that the man with
a great deal of property and little cash
could get what funds he needed at desirable
times. This Is one of the present needs, I
believe and I look for favorable action by
congress,
"As Co rostal savings bunks, t don't see
the wisdom of the government embarking
tanv further upon the banking business."
AT THE PLAY HOUSES.
"Swell Klesrant Jones- at (hr Hod.
Ezra Kendall and company In "Swell Ele
gant Jones." a comedy In three acts, by
Herbert Hall Winslow. The cast:
Tom Jones Ezra Kendall
Andrew Willson, attnruey-at-law j
t V"'-: '.'.', ".".'.'";; ,K:,8- tJ"fln
Judge luttle of the Bur association
Harold Cohill
George Ainslcy, hotel clerk and house j
, r'hVflcl"" Harmnn MacOregor ,
ouu wiiiien, Jl.f I-'OUKIUS doss
"Sleeper" Bundy, who was born under
an unlucky star William McKey
Pumngton Peaslcy, a porter in the )lo
' tel Artesian... Oeorge Neville
"Foxy" Colby, town constable I
George T. Welch ,
Hod l'epper, bellboy.
Mrs. Elizabeth Jones,
Joseph Wright
wife of Tom
Jones (Jenevieve Bllnn
Miss Lucy Alnsley, George's sister
Margery Taylor
Miss Helen Knox, a female detective
Caroline Eckert
Miss Clariuila Tiiicy, Bundy's "particu
lar" Mao Wells
"Indy" Colby, the constable's daugh
ter Margaret Shaw
Ezra Kendall Is back with a much more
worthy piny than any he has had recently,
A homely atmosphere pervades "Swell Ele
gant Jones," despite Its uncouth title, and
Its story Is one that Is of Interest In spite
of Its somewhat melodramatic nature. Tom
Jones is a lawyer who went to Arizona
from somewhere "down east" and located
a mine. He became a millionaire and scat-
tered his money right and left with a pro
fusion that amounted to recklessness. A
former suitor of his wife and a business
rival brings about an estrangement be
tween the couple, nnd about the same time
the mine falls find the bank roll of "Swell
Elegant" Tom Jones evnporates. He is ,
reduced from affluence to poverty In an
Instant, but If doesn't worry him. His at
tention Is turned to the Jask of winning
back his wife. He flnully succeeds in un
covering the deception that has been prac-
tlced on her, nnd Is finally restored to home
and happiness and a reasonable amount of
wealth. The. action of the play Is simple,
and Its courso Is along lines that do not
at any time ,apk too much of reason.
Mr. Kendall finds in the name part a
fine chance for his own peculiar methods.
He abounds In homely saws, quuint and
humorous quips and dry remarks that cover
a world of fun. His pathos Is not strained,
but the hcartrdeep 'feelings of a strong
man. He fairly . dominates the play with
his personality, and the result Is a well
pleased house. His company Is very' well
calculated to give life to the characters
who move through the story. Stage set
tings and all are In keeping with the spirit
of the play, and. from first to last It Is a
distinctly Kendall comedy.
The audience at the Hnyd last night tr
greet Mr. Kendall was large and evinced
K. entailment mf tllf nlSV. blfi rOMllllIf HO
-lannlng tne Btnr and his associates. Th
. , , .... o...-j-.. niu ta.ltv.
engagement lasts till Snturday night, with
the customary matinee on Saturday.
"We Are Kin" at the Kruar.
Mr. I-awrence Kvnit may not Ih a rela
tive or Mr. Walker Whiteside, but should
th latter ever fall Into the predicament of
King Hector of Kahnberg. he would not
have, to look far for a Gustavus Vennefr to
take his place. Mr. Evart very strongly re
sembles Mr- Whiteside in person, voice and
manner, and so It was a little difficult at
You know the
ordinary over-
coat tires you out if you wear it all
day. It isn t balanced
weight doesn t swing
the right points.
A I J
i iuhi miuuiu
iiaug caoy auu vv.
Put on
size in a Kirscn- mj 'J'j! ; M ;JI pi;
you'll see the
difference at
once. It shows
me science oi gooa N'llir-Viw:;
overcoat building.
Add to this good style
and fine materials and you
have an overcoat that any
man can be proud to own.
Ask for Kirschbaum
Clothes (Warranted)
Good Stores Every
where, $12 to $30.
first to rcaliia that V ass, .not the nrinln.il
who was So charmingly presenting 1h- part
of the leading character of ,"Ve Are King,"
which opened Ita engagement at tli Krug
tlienter lust evening. The play, has been re
viewed before, and Is qultn familiar from
Mr. Whiteside's having presented It In
Omaha on several occasions. Mr. Evart Is
s worthy successor to the role. He lacks
In some elements the finish of the original,
but he makes the young adventdrer a most
delightful chap, and one Is glad when it de
velops that he Is re illy king of Kahnberg.
His manner and methods are good.
Miss Flora Mae Haven Is the Princess
Olivia of the present company, and Is a
young woman of great charm of person
ality, and enacts her role with much taste
and excellent discretion. The otheis are
very well fitted In their parts, nnd the piece
Is given in Its entirety with great fidelity.
It deserve for better patronage than it re
ceived last evening. Those who were pres
ent were really demonstrative In their ap
proval. The engagement lasts till after
Saturday night, with a matinee on Saturday
afternoon.
TRIBUTE TO OLD JURISTS
Memorial Services 'Will He Held for
Jndarea Lytic, Vomm and
Feraaann.
Joint memorial service will he luid In dis-
trirt court room No. 1 In honor of John W.
lytle, 8. M. Voumu and Judge A. N. Fer-
' . . , , , , .
uson' three Nebraska Jurists, who have
recently passed away. Judge Sutton hns
just appointed a committee to have charge
of the Joint services. It consists of Judge
Elonrer Wnkeley, Judge George W. IJoanc,
Judge Walton of Blair, Judge Hopewell of
Tekamah, T. J. Mahoney, C. W. Pe I.a
Matyre, O. C. Redlck, John A. Rlne. Judge
ll- Balllett ond Byron O. Burhank. The
date of the memorial will be fixed when the
committee Is ready to report.
Judge M linger of. the federal court will
sit with the district Judges and will speak
in b half of tht federal bench.
MEANS GOES TO WISCONSIN
Man Arrested at Benson la Wanted In
nrlh on F.mbeaalemen t
Charae.
Charles JX. Means, who was arrested at
Bensop, b.y Deputy Sheriff Hazo will b
taken back to Wausau,' Wis., to answer a
l"are i rmoezz.emeni. ah omcer irom
V;"r'' "."T? Thursilay " take 1,inl
i flii'iiiiB ii.iu urfii wuihiuk on a urni near
Benson for about six months. He war
traced there- by the authorities, who huve
been on his trnll for sometime.
If you have anything to trade advertise
It in the For Exchange column of The
Hee Want Ad page.
"
PERSONAL PARAGRAPHS.
Superintendent Hayward of the State In-
; dustrial school and Clerk liper of the State
t-ioaro oi v.naruies unu orreciious spent
Thursday In Omaha.
Captuln T. H. Hacker, chief commissary
of the Department of the Missouri, has re
turned from a lour of Inspection of flour
supplies for the army recently contracted
for in northern Nebraska.
M. D. Karr, formerly president of the
Omaha city council, has been elected presi
dent of the Commercial club of Columbus,
Neb. Mr. Karr moved to Columbus two or
three years ago and engaged In the manu
facture of brick.
Railway Motes aad Peraonala.
Gerrlt Fort, assistant passehger agent jf
the Union I'ttclttc.is In fit.. Louis for a
few days.
Charles 8. Crane, general passenger Hgent
of the Wabash, was In Omaha Wednesday
visiting with other railroad men. His head
quarters are at SL Louis.
The Burlington has announced some
chnnges in its time card, effective Novem
ber I'u. On that date trains Nss. 5 and 12
will be discontinued west of MeCoik Train
No. 13 will arrive at Denver at b io p. m.
und No. 14 will lenve Denver at 1:15 p. m.,
and both trains will make additional stops
between- McCook and Denver. The local
train for Grand Island will leave Lincoln
at f:50 p. m. and No. 43 will leave Lincoln
at :: P- .
8. M. Brayden, the newiy appol:,.cu as
sistant general superintendent ol the
Northwestern arrived In Omaha Thursday
nornlng and left Thursday afternoon with
Assistant General Manag- r Walters ftrn
tour of Inspection over the estern lines.
Mr. Hrayden's headquorters will be at
Norfolk. The report emanating from Sioux
City of the resignation of C. C. Hugh' s,
general superintendent of the Northwestern
lines, was erroneous, and Mr. Hughes iius
simply gone south for a month's vacation.
right. I he
irom
f,'& i in r'f ,r'.
'SaBii i mV
mm
M M, '.i i
x
Mm
mm
IS i
mm
f'.U sV v '
'' i't 'vr i
llte N.' . ,0
i . ' 9. I li'l. I , .li. I
If
m ' i ' 'a r li'li
i
iVJ::
1 1 i;05';::
M
Wlt."'.'!'
mil! !
10c CIGARS FOR 5c
Our plan of selllnn 10c domestic
cigar for Re tins become known all
ovtr the country. 10c cigars have Wn
sold before, for thre for a quarter, and
as low as 6c and 7c. but rto dealer In
the country has ever sold 10c cigars
for 5c until we set the pace.
We acaln with to call the attention
of the smoking public to the fact that
we have recently built a Humidor that
will hold at leitst a half million cigars.
We are therefore In a better position
to care for our'clgars than any dealer
In Omaha. The steam heat haa been
turned on. but It will not affect the
condition of our cigars this year.
10c Ylctoiidad Clear Havana Con
chas Flnas EBpecial 5c, or $2.50 per
box of 50.
10c Vlctoridad Clear Havana Purl
lanas Extra 5c, or $2.50 per box of 50.
10c Queen Victoria Perfectos 6c,
or $2.60 per box of 50.
10c Inventors Conchas Especial 5c,
or $2.50 per box of 50.
10c Inventors Perfectos 5c, or $2.60
per box of 60.
10c Imperial Crest Perfectos 5c, or
$2.50 per box of 60.
10c Imperial Crest Uoquet 6c, or
$2.60 per box of 50.
10c La Desna Perfectos 6c, or $1.25
per box of 25. .
10c Banquet Concnas' oc, or $2.60
per box of 50. ..
10c Banquet Invinclbles 6c, or $2.60
per box of 50.
10c Bauquct Bismarks 6c, or $2.60
per box of 60. .' :
10C LaTonlca Perfectos 5c, or $2.50
per box of 50. '; .
10c Virglnius Itufus Regalia 6c, or
$2.50 per box of 60.
10c Klor de Gounod Invinclbles 5c,
or $2.50 per box of 60.
' 10c F!or de Gounod Perfectos 6c,
or $2.50 per box.'of C0. ' . ,
10c Hoffman House Perfectos Extra
5c, or $2.50 per box of 50.
Last, but not least, our celebrated
Combinations Nob. 1, 2 and 3, five 10c
cigars for 25c.
Myers-Dillon Drug Co.
Cut Ilute Cigar Dealers,
S1XTEKNT1I AND FAItNAM STS.
r
1
GEO. F. WEST
t
Hustling rfsengt'r Agent for a Real
t.lvc Itnllrond and Ak-Sar-Hcn's
fort-most lUtual Writer.
We have often been compli
mented by being called bustlers.
If there is anythtlng new in
goods or stj le3 we are the first to
get it.
Thei;e Is great satisfaction in
dealing with real live tailors
tailors who know who can advise
the proper goods in the best shades
and most appropriate stj-les . for
each individual patron. Our
ings are exclusive. Just on .
of each. We give every order tha
most careful Individual attention.
We have two expert cutters and
sixty expert sewing tailors.
Our suits at : to &iO are as
well made and are as stylish as
the best suits on earth.
MacCARTHY.WlLSON
TAILORING CO.
I rnon uoug. laps. Sot- 8. lath St I
I Next Door to Wabash Ticket Offlc. J
The OTTMEAJITXmir LIMITED, of th
is one of th finest equipped passenger
trains out of Kansas City, and leave that
city daily :30 P. M. arriving- Mamphls.
Tenn., 8:00 A. M., Hot Springs, Ark., J:4 0
P. M., New Orleans, La.. 8:16 P. M.. Bir
mingham. Ala., 3:5$ P, M-. Atlanta ' Oa.,
10:20 P. M., Jacksonville. Fla., .5u A M
carrying
PULLMAN, DRAWIIIGRQOM,
SLEEPER, KANSAS CITY to
JACKSONVILLE, FLA.
without change and
KANSAS CITY to HOT
SPRINGS, ARK.
without change. Many of the oth-r cities
I and winter resorts of the south and south
east are reached Just as easily and com
fortably by this train. Passengers should
arrange to leave Nebraska and Iowa points
In the forenoon, In order to connect with
the above mentioned train. Any ticket
agent will cheerfully furnish througii
rates, and arrange to reserve througn
sleeping car berths. Kor additional infor
mation and pamphlets concerning Florida,
address J. C. Lovrlen, Asa't Uen'l Passen
ger Agent, Kansas City, Mo.
Food for
Nerves
Weak and nervous men
who flnci their power 10
work and ' youthful vigor
gnus a a result of over
work or mental exertion should tako
GitAY'8 SKHVE FOOD I'l 1.1.8. Thy will
make you em and .irep and he a man again.
1 Boat box aa.60 by Mail.
Sherman & McCormell Drug Co
14th and lftjdge fct.. Omaha. N-t,
With great care, by a new process,
delicious
produces flavorings of rare axceUeocc.