New-York tribune., 1908-04-16
ATTACK ALDRICH BILL
Leading Bankers SeUerely 4rraign
Measure at Hearing.

/
/ to hear arguments against the Aidrich financial
/ bill and also the measure introduced by Mr.. Nree-
/ land, of New York, upon which the Republican
members of the House TO caucus next week
! The currency commission of the American Bank
ers' Association representatives. Of the Merchants
! Association of New York, and other bankers from
different parts OF the country severe in their
'denunciation of both of these measures II seemed
TO be the general opinion among the speakers that
/ If credit currency measure could not be passed
! az this session it would be wise the part Of
! Congress TO let the matter go until the next
session, in the time providing for com
mission 10 consider the whole financial question
and formulate a measure for consideration next
winter.
! The committee decided to continue it's hearings
/ on the Aldrich bill tomorrow to accommodate
committee from the Chicago Association of Com
nerce, although It hal been originally determined
/ that the hearings should close to-day.
! = d Forgsn, president of the First National
Bank of Chicago was the first speaker this morn
ing He read statement unanimously adopted
by the currency commission a meeting in Chi
cago in which the AIdrch bill was referred as
impracticahle, unvise and financially uusound.
DO you think there is need OF an emergency
currency" asked Mr. Prince
! Il do not" replied Mr.. Forgsn. II think
that condition ever in this country that
could call for anything bearing such internal
name as emergency currency. proper currency
prevents anything like emergency currency get
/ ting into the minds Of the public"
! asked Mr. Prince
NO. on the reverse. I see signs ~ accUnulat-
/ ing money in the banks that it is going he very
! difficult TO find for"
Mr.. Forgan asserted that the amendment of Sen
/ stor La Toilette, prohibiting bank from making
! loans to corporations in which the directors or
officers Of the bank officers directors. II 1t
! became a law, would upset lie banking business
! Of the country. The effect would be. he said. that
! the directors would retire and put dummies in
| their places.
A. Barton Hepburn. ex-ControIler of the Currency
! and chairman of the currency commission of the
/ Bankers Association. became involved in the dis
! cussion which followed Mr.. Forgan's remarks.
| IF should seem that Congress this session
must either do nothing pass emergency cur
rency bill based upon honos, what would you sd-
/ vse?' asked Mr.. Glass.
! i would advise doing nothing" replied Mr.. Hep
| burn Il am totally opposed any currency pred
icated upon bonds unscienthc and most expeu-
sive In practice. It Is the Of existence. -
DO you think you speak for the industrial and
commercial interests of the country well for
| YOURSELF" asked Mr.. Prince
| Il think 1 believe the people are beginning
| TO realize the evils of bond secured currency"
Mr.. Hepburn said he did not favor the bill re-
! Gently introduced by Mr. Vreeland.
| John J.. Hamilton OF Hoopeston. Ill ex- president
| Of the American Bankers Association the first
speaker al the afternoon session OF the committee
| Speaking in behalf of the country bankers. he said
that the Aldrich bill Objectionable to them
10 the larger banking institutions in reserve
cities. If this bin became a Law, he said, II
would be possible for the Secretary Of the Treasury
, to discriminate against the country banks He
opposed the Vreeland bill, and said he would CON
slider il better for Congress 10 do nothing than TO
pass that measure
E F. Swinney Of Kansas City argued for an as
set currency as against bond secured currency.
! solomon Wexler. vice-president of the Whitney
/ National Bank, of New Orleans, advocated the ap-
pointment Of currency commission, and Joseph
. T. Tolbert president Of the Chicago Clearing
. House. said he unable find a single re-
deeming feature in the Aldrich bill. Joseph A. Nc
Cord, Of the Third National Bank. of Atlanta Ga.
was asked by Mr.. Prince If he thought there was
any danger OF another panic this fall. Not unless
| some such legislation this should prevail" re-
Piled Mr. McCord. Mr. Wexler made a similar
reply TO the same question.
Charles II. Hutting, o. the Third National Bank
of St Louis said that should the Aldrich bill he
come law the injury 10 the banking and com
mercial interests would be greater than during the
recent panic. and Festus J. Wade. president the
| Mercantile Trust Company, of St Louis, said: IF
either the Treeand or Aldrich measure becomes a
law it will be impossible to k ep the financial ques-
! tion out OF politics next fall"
+. D Page, OF the Merchants Association. OF
| New York, in opposing the Aldrch bill. gave fg-
ures representing his estimate Of the INJURY
business by the present currency system, which he
declared would be only extended by the Aldrich
currency bill Mr.. Page declared that it was not
too much say that every year, owing the in
elastic quality Of the present currency system. the
/ country burdened from that cause alone with
average increment in the rate OF interest Of not
less than Z per cent Sl00o00o0.00 of bank loans
and OF similar increment not less than $2O.-
O00.0OO00 of mortgages and of the funded debt OF
railway public service and Industrial corporations
or sl50. 600 600 annually.
The commercial interests OF this country he
said. believe that a dealing with the cur
rency should be Immediately taken in hand by the
present Congress and administration. and that il
should be based upon the following principles:
A-Banknote circulation should be issued by
banks and secured by the general credit of their
/ assets, repreSs ntlng commodities in process OF
/ adequate reserves OF gold or its eQuiVaen+-the
only commodity which in time OF panic or national
peril IS worth more and not less than It Is at
other times
R-A government is not organized and cannot
be organized to do efficient banking business
Every attempt in history 10 do SO has been an eN-
penSive failure. Our legal tender notes should he
Z retired at the earliest possible date and their
place in the circulation supplied by gold or its
/ C-The nation should evince its faith in The
credit Of its banks by depOsitng its moneys with
them on the same terms that it expects its citi-
! zeus 20 do
! D-A better system Of bank regulation fo- the
protection OF all depostors can and should he de
yised. fulfil the requirements embodied IN the
foregoing principles.
W y cox Of this city. Frod W Uphau presi-
dent OF the Illinois Manufacturers Association,
Levi Mayer. attorney for the association. and Fin
also opposed the Aldrich bill. the La FolIerte
amendment and the Vreoand bill
AGAINST APPALACHIAN RESERVE.
he t-t7