The Detroit times., 1908-02-10
BOTH PARTIES TO
OPPOSE ALDRICH
CURRENCY BILL
Continued from Page oneo


the authorization of additional notes
to be used only In emergencies. The
committee on finance, with practical
unanlmity, arrived at the conclusion
that IL would not be possible to secure
this relief by the adoption at this ses-
sion of amy, measure which should
provide for the thorough revision or
reconstruction OF our monetary sys-
tenn, however advisable such course
might be from scientific or practical
standpoint.
while the government Is not and
should not be I'm the banking business,
the United States treasury is and must
be for sometime TO come by law ana
custom great national bank or Is
sue. All the money In circulation IL
either issued by the government d.
rectly or under It's express authority
and regulation, and the government
Is and should be equally bound to
maintain the parity of all. Bank notes
are essential government money the
banks being merely the instrument
"The German government gives the
Imperial Bank OF Germany which Is
under the direct control OF the imperial
government, tho practical monopoly or
the bank note Issues I'm that country.
The Imperial bank has authority TO is
sue an arbitrary amount, $l1s.000,000 of
notes not covered by specie. A further
Issue IL authorized equal to the amount
may be issued subject 10 tax OF nyo
per cont per annum, the average inter-
est charge in Germany being less than
this rate or taxation. Against these
additional notes. specie must be held
ITO the extent OF one-third OF the
amount and good bills OF exchange
against the remaining two-thirds. In
recent years and especially during the
past year tho privilege OF Increased Is
sues under the five per cent provision
has been freely used.
The plan for additional notes which
the committee recommended for your
adoption, Is substantially the plan OF
the Imperial Bank OF Germany with a
change in class of securities required
and "A change in the rate OF taxation.
In It's general features the plan OF
note Issues adopted by tho German law
OF 1875, followed the English bank act
of 1914. but amending and improving
that act, however. by adding the pro-
visions for note expansion that have
explained.
"'rhe committee on finance believed
that the example OF Germany was the
safest precedent for them to follow.
and the ono most likely TO successfully
answer our requirement for a temper
rency which would not be- permanent
In it's character and which would add
no new elements to our somewhat COM
plicated currency scheme.
For Temporary Use Only.
The committee are OF the opinion
that the bill which they have reported
answers these requirements.
'"rhe problem before the committee
was to find some simple method or
remedy and prevention that was mere
ly an extension or supplement- TO the
existing system and that. could be pro-
vided through the use OF existing ma
chinery. The system OF issue aud re-
demption. which has existed for 10
years, - continued by the terms OF
this bill The currency Is intended for
temporary use officially, and not 20 De
retained In general circulation, and we
have made tho most careful provisions
for It's enforced retirement when not
needed The notes Go be issued are
nomInally national bank notes. hut
they are in substance national currency
OF the United States. issued through
the agencies OF the national banks.
Tho remedy We provide Is simple.
prompt and efficient NJ any time
within As hours. II an emergency r.
CURES "A, $500 100000 OF new money can
be put into the channels OF trade TO
altay public excitement and 10 meet
extraordinary demands.
The committee believes that this
great fund, placAd by the government
al the disposition OF the bankers and
business men OF the country. VIII have
"A strong tendency to prevent financial
crisis and TO preserve public and pri-
vat. credit at hotne and abroad
In periods OF distrust. large num-
bers ~ people are controlled by sentis
meut Experience has shown that az
such time tire strongest element In
aliayinR excitement and creating con
! ndonce IS the knowledge that a REM
edV exists which can and VIII be
promptly and effectively applied The
existence % this great fund Is like the
creation % Rn amSle water supply
/ with effective apparatus 20 check con-
a 40 ~