Our bank ing system has lacked the power to exercise effective cooperative control over the international flow of gold. One of the important functions of the great central banks of Europe is to regulate the rate of discount in such a way as to prevent the gold reserve from being unduly depleted, and to build it up when necessary. But in this country there has been no properly organized agency to check the outflow of gold or to restore the depleted supply when gold reserves fall below normal necessities. During the panic of 1907 and at other times of urgent need a few banking houses have imported large quantities of gold but there has been no concerted effort to attract gold by raising rates of discount or by offering foreign countries the proper inducements to part with their specie. "No such policy is possible in a country where there is no cooperative agency to regulate the rate of discount. It is impossible to expect banks, acting on their own initiative, in competition with others, and controlled primarily by a desire for profit, to pursue a policy which would merely reduce their own earnings and would not result in conserving the gold supply of the country. If they could act as a unit there would be many eases in which they would agree to raise the rate of discount to customers in order to check borrowing, reduce exportation of gold, and put a brake upon lines of business which were going too far for the good of the country.