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The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, February 16, 1913, Image 20

Image and text provided by University of Alabama Libraries, Tuscaloosa, AL

Persistent link: https://chroniclingamerica.loc.gov/lccn/sn85038485/1913-02-16/ed-1/seq-20/

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Glass Sub-Committee Striv
ing to Devise Suitable
Chicago Business Man Discusses Out
look for Monetary Legislation
and Gives Essentials
for Bank Reform
Prealflent of the .fohn V. Farwell Co.,
No on© who realizes the profound im
portance of banking reform to industrial
and commercial America can fall to ob
serve with the liveliest interest the pro
ceedings of the Gla.es sub-committee in
the House of Ttepresentative-s. The Pujo
•ub-commlttee of the House banking and
currency committee Is Investigating what
is popularly known as tlie ‘'money trust."
The sub-committee headed by Carter
Class of Virginia is framing legislation
to remedy the defects la our system, and
Its task, therefore, is the constructive |
task. It is always easier to tear down
than to build up, always easier to ^ay |
that a man is a villain than to reform j
3iim. It Is just as much easier to show
on© evil in our banking system, in the
vast concentration of money and credit'
power in New York, than to reconstruct
the system so as to eliminate VVfat evil
and tb© others inherent to V.
Aristotle, In his d''fruition of money,
•ays of barter: kind of trading is
not contrary to nature, nor docs it resem
ble agatnful ocvtipatlon, being merely the
complement «Jr one’s natural independ
ence.** (Pfj>uics, 1, 9.) In this day of en
lightened economic thought we are in
clintykHo smile at the quaint notion of the
ano’ints that any gainful occupation—
suejf as taking interest on money, for in
ntJnce—is in itself meretricious. But we
in the United States, with u banking sya
icm which has marked time for half a
| century, have less cause than any other
i civilized nation to smile,
Work of Glass Committee
There can be no doubt that the time
is at hand when this outworn, misfit sys
tem is to be renovated. Every Hign points
to that. And every sign points to the
work of the Glass sub-committee as the
most important now under \Vay, because
the bill offered by that body will be the
most conspicuous and the most seriously
considered of any presented to Congress.
In order to sound the sentiment of the
country the Glass sub-comniittcc lias ex
amined many business men. bankers and
economists, and will examine more. I am
one of those who have appeared before
it, and from the questions put to me
and other witnesses it is not difficult to
detect the drift of the committee's delib
erations. Chairman Glass has announced
unmistakably that the committee pro
poses to stand squarely on the Baltimore
platform, and Is unalterably opposed to
the National Monetary Commission’s plan,
commonly known as the Aldrich bill.
What plan, then,•lies in the mind of the
It may be as w'ell here to point out that
the monetary commission’s plan, which
began at the top and built down through
branches, with the branches as the ser
vants of the National Reserve association,
had som$ of the objectionable paternalis
tic features of the foreign central bank
systems. It provided, moreover, an un
wieldly Inflation through the counting of
its note issues as reserves, and through
a too promiscuous use of acceptances, or
bankers* bills.
A Democratic Plan
Mr. Glass and the other members of
Ruptured People
Give This a 60-Day Trial?
Here Is something von can try sixty days—just as
• test—without having to risk a cent—
Something which in the last twenty-four years has
•lived tbousamls of ruptured people from having to
•ndergo operatlon
Somethlng so alrengthoning to the ruptured parts
that you can work right along while getting better—
Something absolutely guaranteed to keep rupture
from coming out—if H doesn't It won't cost you a
•ingle cent.
You Don’t Have to Kink n Pcnuy
We don't ad* you to pay out n penny on the
Strength of any mere promise or claims.
We will mekc you a guaranteed rupture holder cspe
dally for your ease—niaku it to your measure—and
let you try it sixty days
Let you give it a thorough ten without asking you
to risk a tynt.
If it doesn't keep your rupture from coining out or
bothering you in any way- If It doesn't prove every
elalm we make—then you can send It back and it
won’t cost you a cent.
*ee What II Does*
This guaranteed rupture holder—the famous Cluthe
Automatic Massaging Truss- Is made on au absolutely
nsw principle. It is far mor* than just a truss.
You see this truss—unlike all others—is self-ad
justing, self-regulating.
The support it gives automatically increases when
there ia any sudden movement or strain—us in work
ing—so no strain can force your rupture out.
And. In addition, a Cluthe Truss provides the only
way ever discovered for overcoming the weakness
which la the real cause of rupture.
While loitering the weak ruptured parts of all
•train, this Truss is constantly strengthening the rup
tured parts.
.fust hew it does that—entirely automatically- is all
•xplained In our free book.
.<100,000 People! Have Tested It
The Cluthe Truaa hat such a remarkably strength
•Ding and l>enefldal effect that it has cured aome of
the worst cases on record—
Among them men and women 50 to 70 yeara old,
who bad been ruptured from 20 to 50 years.
Cured many of them after everything else, includ
ing operation, had failed to do any good.
No licit—-No Leg'NtrHpM — \o Spriugn
The t'luthe Truss dues away entirely with belts.
leg-31 raps aiuj hprings. People who have tried say ;
it Is as comfortable ns their clothing. It is water- 1
proof—will hold In the hath. Also perspiration-proof
nnd easily kept clean.
t«et World’s tircatcNt Kiipturc Hook
So that you ran judge for yourself, we want to pend
you u free b< ok wo have written a cloth-bound book
of advice. People who have rend It—including physi
cians---say It. is tin? best book ever written on Rupture.
It suras up all we hare learned about rupture in
forty years of day-after-day experience. It deals with
ruptiire In all Its forms and stages—explains the
dangers of operations—shows why wearing elastic or
spring trusses is sooner or later almost sure to
shorten your life. And it exposes the humbug "ap
plances," "methods." "plasters.” etc., and shows how
old-fashioned elastic trinses are masqueraded under
false and misleading names —puts you on guard
against throw!.'g money away.
It shows why 60 days' trial Is the only safe way to
buy anything for rupture, and how the (’luthe Truss Is
the only thing you can get on such a long trial, be
cause the only thing good enough to stand such a
thorough test.
And It tells all about the flu the Truss—how it ends
constant expense—how you can try It 60 days at our
risk, and how little it costs If you keep It after mak
,Jug the test.
It tells—In their own words -the cxperlewe of
many former sufferers- gives tgeir names and ad
dresses—perhaps you know some of them.
5000 other voluntary endorsements sent with the
Write for it today—don't put it off—this book may
be the means of adding many years to your life and
of restoring you to full strength and usefulness.
Just use the coupon or simply sny J^n a letter or :
postal, "Send mo the Brfok.”
»'m* ltlUNGS IT
Ilo* 30—<Til TII13 COMPANY
125 Kiat 23r«l St., NEW YORK CITY
Send me your Free Rook and Trial Offer.
Name . .
Address ..
used for bottling
Don’t Irink whiskey from black
bott les Think of the dirt, insects
and other dangers to health which
may be hidden there.
You are sure of getting good,
clean, wholesome whiskey when
you drink
his committee evidently wish to aroid
these defects. Their plan seems to be to
build up from the bottom. Instead of
down from the top—a plan clearly more
in accord with the genius of the Ameri
can people. That this is their plan is
shown by Mr. Glass* frequent references
to regional reserve associations, with a
supervisory hoard of control (a "Treas- j
ur*r board." he called it at times) and
with the reserves of the member banks
pooled in limited, number of regions,
zones or districts. The treasury hoard,
it seems, is not to hold the reserves. If
this plan finally wins the favor of the
i committee, but Is to superintend the oper
j ations of all the regional banks as a trus
j tee.
Kven thi* crude sketch arouses inter
esting questions. Will the regional banks
issue the currency or will the supervisory
board issue It? By what method will the
regional Hanks effect their clearings?
Surely not by the awkward and expen
sive shipment of currency. Is any use to
he tnade of our valuable clearing house
experiences? Will there be a uniform dis
count rate, or a discount rate for each
district? How are the government bonds
which are now the basis of bank note
issue to be retired?
These are superficial problems which
suggest themselves at once to the stu
dent of monetary reform. I did not In
clude the question of how the supervisory
board is to be chosen, because, to my
mind, It is riot highly Important. I do
not care whether a majority are appoint
ed an the members of the supreme court
are appointed, or elected by the regional
association. Ft seems to me certain that
w'e can trust ourselves to select for posi
tions of such grave responsibility men
who are patriotic, disinterested and far
sighted. To say that we can trust our
selves to do that is to declare the failure
of democratic* Institutions.
The Question of Issue
It does not seem to me that it would
be wise to provide that each regional as
sociation should issue its own currency.
If that were done, we would have as
many different kinds of currency as there
were associations. It would be. in a
measure, #a backward step toward the
I conditions which prevailed prior to the
civil war. The supervisory board should
' have the control of issue, in my opinion,
and 1 will be interested to see what plan
| the Glass committee adopts to solve this
1 It is rjuite possible to effect a system of
offsetting of credits between regional as
sociations. Our clearing house system
could be applied nationally among them.
This suggests itself to me as the readiest
| answer to that question. And it seems to
me, in this connection, that there should
be some provision against the issue of
clearing house certificates—an expedient
which has always been extra-legal, at the
best. With a sound banking system there
would he no occasion. I am satisfied, for
such a step.
The retirement of the government bonds
presents a complicated problem. I
thought that devised by the National
Monetary Commission very ingenious. The
banks must, in justice, be protected
against loss.
Essentials of Reform
I have previously outlined my views of
the fundamental principles, which must
be included in any sound banking anil
currency system as follows:
1. A discount market where short-time
commercial paper can be made liquid by
transforming it into a demand credit or
into currency notes.
2. A co-operative control of a largo
proportion of the dead cash reserves of
banks, so as to produce the effect of
common ownershop and prevent the pres
ent struggle between hanks to grab re
serves from one another in times of
3. An elastic currency based, not on
government bonds, but on the assets o
all the banks co-operating, which wouli'
originate, as far as expansion is con
eemed, from the process of discounting
in the discount market, and would b
issued, not by individual banks, but by i
common agency.
4. A provision for international bank
5. The institutions organized for’ these
purposes should not be money-making
institutions, but should act as “trustee
of prosperity for all the people."
The first of these principle^ eould b
put into action by the establishment o
district discount associations, similar i
a general way to those created by th
monetary commission bill.
I wish to emphasize the fact that w
should make adequate provision in an
hanking reform legislation, for ilnaneln
our foreign trade. Our shortcomings i
that direction are a tax upon the bus'
ness of the country. I explained to tf
Olass committee that when my firm bu\
goods in Japan, it pays tWr them with
hill drawn on London, rttioh a hill wi
sell better than a bill drawn on Chicag<
Tlte committee seemed interested in th!.
ami the members questioned me in deta
about it. One reason for it is that Eng
land, having trade In all parts of the
world, lias organized her splendid hank
ing system to tnke care of just such
drafts. And every merchant in the world
knows that when you buy a bill on Lon
don, it is instantly convertible into gold,
whatever the amount.
Differs From Aldrich Plan
We should have a common agency simi
lar. in some respects only, to the Nation
al Reserve association. When I say in
some respects, I mean that there might
be this essential difference, which, froth
a democratic point of view (and I do not
speak of this in a political sense, hat
rather in a broader sense of the word),
is quite a fundamental difference.
in the monetary commission bill the dis
trict associations were, through the man
agers, the agents and servants of the
National Reserve association. In a mod
ified plan the co-operative association
would he tlie agent and servant of the
district association, controlling each for
the common good of the whole country:
that control however,, to he exercised
by the common consent of all the district
associations. It would also differ from
tiie National Reserve association in that
it would have no capital stock.
if this form of machinery were adopted,
I believe it to be essential that there
should lie five or at the most only seven,
district associations, each having as many
conveniently located sub-agencies as nec
essity would dictate. I say five, or at
the most only seven, because they should
all be strong enough to command the re
spect ami conflder not only of one an
ottier. but of larg, orelgn central banks.
Disraeli once tuid that people were
ruled by their imagination rather than by
their reason. Whether this is true or
not, in u panic we know that people are
ruled by their Imaginations, and each as
sociejion should be so large anci strong
that no Might of tlte imagination could
conceive of Its getting into trouble.
How Many National Banks?
If you had 15 or 20 associations, some
of them, in all probability, would not
have a capital stock paid up of over
$5,000,000. Such associations would not be
as large as many national banks already
in existence, and would not occupy the
position necessary for a sound system.
They should have authorized capital
stock equal to, say, 10 per cent of the
capital of the subscribing banks, half of
which should be paid in.
They should take a large proportion,
say 80 per cent, of the dead cash re
serves of the banks and hold them for
common use. The subscribing banks
should also be obliged so to deposit these
reserves. Banks only should be stock
They should do business with banks
only, their main function being to dis
count mercantile notes and commercial
paper having not over Co days to run.
They should not be allowed to discount
paper made for carrying stocks or bonds
or mortgages, and they should be free
from any connection with investment
They should be the fiscul agents of
the government.
Discounts and acceptances /illowe^ to
any one bank should not extend the
amount of its capital stock.
There should be a fixed rate of discount
in each district, the same to all banks
under like conditions. Over-expansion
should be checked at its source, that Is.
at the time and place of discounting of
otud, tittusik iU iSLOCil lll£ NEW INQUESl
-Mysterious Influences. It Is charged, have been used to block ike investiga
tion into the death of Frank Robertson, who was found by his wife shot to
death October 22. The District Attorney at Milwaukee, WIs., however, is
determined to prosecute the inquiry. He is backed by many cltlaens, who
declare the scandal should be bared.
A verdict of a coroner’s jury decided the death was a suicide. This was
in the outgoing city administration. Mr. Yoekey, recently elected District
Attorney. has declared that in the original Investigation important testimony
was missed and that other testimony was not transcribed or was destroyed.
Not long ugo Amos Robertson, father of the victim and Mayor of Sheridan.
111., wrote to inquire when the inquest was to be resumed. He no longer is
siding with Florence, his son’s widow.
Mr. Yoekey has seen and talked with Mrs. Robertson and she has agreed
to go to Milwaukee at any time to testify.
Miss Georgia Rowers has consented to go to Milwaukee and will be one
of the most important witnesses, it Is believed.
this commercial paper by the Individualtendency to over-expansion would be
Provisions as to Discounting
To provide a gradual instead of a sud
den check to over-expansion, a bank
should be allowed to discount, say, an
amount equal to the first third of Its cap
ital stock at the going district rates, out
when it applied for anything in excess,
it should be charged a higher rate, or the
going rate plus a commission. Also when
it wished to exceed two-thirds of Its cap
ital stock, the rate should be still higher,
or there should be a larger commission.
This would probably prevent the banks
from expanding to the limit when rates
were low' and thereby encourage over
trading or possible speculation, and would
not penalize conservative hanks which
had held back from rediscounting only
to find that the less conservative
ones had taken most of the money and
that the rate had consequently been put
up to them. By this method I believe a
checked at its source; that Is. where the
individual bank asks for rediscounts.
hank acceptances should only be al
lowed when directly connected with the
importation or exportation of merchan
dise, or money.
In my judgment, it would be very dan
gerous to allow all the banks in the
country to accept drafts as provided in
the monetary commission bill. The dis
trict associations should be governed by
a board, of which one-half should be
bankers and one-half business men. The
comptroller of the currency also should
have a deputy comptroller, with some as
sistants, on each board.
As to the organization of the co-opera
tive board, it seems to me that each dis
trict association should be represented
by two men, one a banker and one a bus
iness man. and the government should
have one member for each district associ
Golfer “Off His Game”
From the London Express.
The possibility of golfers flocking to j
Harley street to be cured of a tendency |
to top their drive* or foozle their mashie j
shot is opened by the news that after j
"hypnotic” treatment at Guy's t hospital
a golfer who was off his game returned !
to the links in splendid form.
He was an amateur plus player who had
suddenly gone stale from over-concentra
tion on his game, and the method adopted
by a Harley street nerve specialist was
to instill In the man's mind by suggestion ;
the conviction that he was just as good
a player as ever.
Some interesting opinions on the sub
ject were given to an "Express" repre
sentative by Dr. Edwin Ash, the famous
specialist In mental disorders.
"A game such as golf," he explained,
"requires a very delicate co-ordination of
mind and muscle, which become sub-con
scious in the case of a player of any skill.
He plays like an automaton, and is at
his best when he does not trouble about
the result of the match, or the idea that
he is going to play badly, has the result
of interfering with the working of the
sub-conscious part. It clogs the wheels
of the automaton.
"Now there is no doubt that sugges
tion can remove that interference, by
removing the particular ideas which have
blocked the free running of the automatic
impulses which all* go to the proper
swinging of a club.
"The hypnotic sleep state is not nec
essary, and in most cases is undesirable.
My own method in such cases is to get
the patient’s mind poised, and then re
move by suggestion the idea which is ob
structing the sub-conscious action of the
"Students suddenly faced with an ex
amination paper often And their memo
rles almost wiped out by the rush of en
ergy In their conscious brain. The auto
maton which should reel off dates and
figures seems to get a spoke through its
driving wheel.”
Was Very Careful
From the Philadelphia Eevening Tele
At a recent dinner Justice Hughes re
ferred to the wisdom of precaution and
cited an instance that waB called to his
During a storrfi in a town In New Tork
state a number of electrical wires were
torn down, and when the electrician and
helpers started to make repairs they found
several natives carefully handling the
broken ends.
"I wouldn't do that if I were you,”
Cautioned the electrician, addressing a
man from Dublin. "You might pick up a
live one, which would mean instant
"That's all right, sor," was the smiling
reply of Pat. "Oi wasn't takin' iny
"You weren't taking any chances!” cried
the electrician In surprise.
"Not on yez loif!" answered Pat. "Sure,
an' Oi felt of thot woire very careful be
fore OI took hold of it."
Making an Example
From the Ladies’ Home Journal.
"You admit, then." Inquired the magis
trate severely, "that you stole the pig?"
"I lias to, boss,," said the prisoner.
“Very well," returned the mlglstrate
with decision, “there has been a lot of
pig stealing going on around here lately,
and I am going to make an exaipple of
you, or none of us will be safe."
A Rank Jest
Marks—“Jones tells me he saw you yes
terday eating In a lunch wagon.”
Parks—“Yes; I was dining a la carte.”
• IP
Turn the rascals out—the headache,
biliousness, indigestion, constipation,
the sick, sour stomach and foul gases
—turn them out tonight with Cae
ca rets.
Millions of men and women take a
Cascaret now and then and never know
the misery caused by a lazy liver, clog
ged bowels or an upset stomach.
Don't put in another day of distress
—wake up refreshed and feel'fine. Let
Casc&rets cleanse and sweeten your
stomach; remove the sour, undigested
and fermented food and that misery
making gas; take the excess bile from
your liver and carry off the decom
posed waste matter and constipation
poison from the bowels. Then you will
feel great.
A Oascaret tonight will straighten
you out by morning—a 10 cent box
keeps your head clear, stomach sweet,
liver and bowels regular and you feci
cheerful and bully for months. Don’t
forget the children—their little insides
need a good, gentle cleansing, too.
Medical Service
Doctors J. W. Kidd, S. F. Sutton, D. D. Hays. W, A. Johnston and C. E. Munk Give Free Help to All sick people. The
bringing together of such an array of Special Medical Skill, to give Free Home Treatments for the cure of all ailments, is
the most Mammoth Benefit ever planned for the Help of Suffering Humanity, and marks a New Era in the battle against
disease, without equal in the annals of Medical History.
• ■
Immense Permanent Organization of Medical
Specialists Gives Free Treatment To All
No more stupendous undertaking has ever
been launched for the benefit of sick and suf
fering men and women than the permanent
establishment in Fort Wayne, Indiana, of a
company of five eminent medical specialists
for the purpose of giving their services and
distributing successful horn? treatments free
to all who need and ask their help.
This mighty amalgamation of master med
ical minds, this wonderful fund of medical
lore represented by five recognized special
ists, whose valued services might well he con
sidered worth hundreds of dollars to the af
flicted, offers free the knowledge and expe
rience of years and the medicines upon which
have been built their individual and collective
; reputations for cures of seemingly incurable
diseases after family, physicians and every
other known means had failed.
To secure free tlie services of this grand, beneficial
j organization, you need do nothing more than simply te.l
these doctors the cause of your ill health, tell them why
and what you suffer and they will select and send you,
free of all charge and postpaid, a special free home medi
cal treatment and letter of professional advice.^
You are not asked to furnish references. In this great
and glorious work there is no question of financial stand
ing, wlfether your possession^ be many or few, whether
your trouble is just starting or of long standing, you will
never be asked to pay one cent now or in the future for
the free treatment that will be sent you gladly and freely.
These men of medical science, whose treatments have
cured thousands of hopeless sufferers, come to you with an
open-handed, open-hearted, straightforward offer to give
free all the professional advice you need and send free a
home treatment which they believe to be the best suited
to the cure <»f your trouble if you will only tell’them what
that trouble is.
| No sane person who suffers from disease can justly
refuse to accept this free help whea they know that here
is offered the blessed hope “of renewed health, strength
and usefulness.
The medical profession in general
lias long been aware that there are
thousands of sufferers from curable
but persistent diseases who have
spent all they can afford in useless
endeavors to secure relief. Tt is
known that many sufferers declared/
incurable by local doctors can lie
made well if properly treated by
specialists of superior knowledge
and skill in the treatment of their
particular diseases.
Fur the benefit of these discouraged, dis
gusted sufferers, who cannot or will not spend
more money In experiments, there has been
established in Fort Wayne. Indiana, an in
stitute ol five medical specialists, under the
able leadership of Dr. .lames W Kidd—prob
ably the best known physician in America,
who will furnish free diagnosis, free treat
ment and free advice to all who write a letter,
describing the nature of their troubles or fill
out and mail the coupon below.
Everyone in poor health or who
is suffering from any disease or ail
ment, whether or not they have been
treatecj by other doctors, no matter
if their trouble is believed to he in
curable, should give as full a de
scription as possible of just how
they suffer, either by carefully fill
ing in the blank spaces on the free
treatment coupon below or writing a separate
letter and attaching free treatment ooupjem
to it . . Write plainly and address your let
ter to The Doctor Kidd Institute, Ft. Wayne,
Indiana, or to Dr .las. VV. Kidd, personally.
Your case will then receive immediate at
tention; letter of advice and free home treat
ment will be sent to you postage paid in plain
sealed wrapper.
Tills offer is for .ILL—not for the few who
can afford the services of great medical spe
cialists—but for YOU, no matter who you are
or where you live. Accept this Free Offer
Today. i
Coupon B-108 For Free Home Treatment f
DR. JAMES AV. KIDD, ( lilef of Medical Staff,
Please send me a Course of Home Treatment for my case. free and pontage paid, just as
you promise. ^
Name . ....%\ •
Post Office ......State* . ..
Street or R F. D. No........ ;
Age ..How long afflicted? .
Make cross (X) before diseases you have; two crosses (XX) before the one from which !
you suffer most.
. . Rheumatism
. .Lumbago
. .Catarrh
. .Constipation
. . Piles
. . Diarrhoea
..Torpid Fever
. .Indigestion
..Stomach Trouble
. .Kidney Trouble
..Bladder Trouble
. .Weak Lungs
. .Chronic Cough
. .Malaria
. . Asthma
. . Hay Fever
..Heart Trouble
. . Poor Circulation
. .Impure Blood
.. Anemia
. . Pimples
. . Eczema
. . Neuralgia
. .Headache
. . Dizziness
. .Nervousness
. .Obesity
..Female Weakness
..Womb Trouble
. .Ovarian Trouble
..Painful Periods I
..Hot Flashes
..Bearing Down Pains
Give any other, s>mptoms on separate sheet. Correspondence in all languages. j

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