New-York tribune., 1908-04-11
OPPOSE ALDRICH BILL
IactOr Wordpetz, Horace White and
Others Argue Against 1t.
from The Trtbane Bureau. ]

Washington. April 1O.-Asserting THAI the bond
reserve feature Of the Alduch bin is q plan 10
change bad financial system by making IT worse,
Horace White. OF New York. condemned the meas
ure before the House Committee on Banking and
Currency to-day. He favored rather the Fowler
measure. which he characterized as a step in the
right direction and to he exped;ent and easy
OF installation. In advocacy of credit currency.
he said no country which that system was used
had ever had serious money panic, because banks
do not deplete another's reserve, and the
public does not deplete the reserves of all the
banks He asserted that the Fowler bill would
avert panics because II would provide an elastic
system and prevent trade reactions.
This view seconded by others who appeared
before the committee including Victor Morawetz.
chairman of the executive board of the Atchison,
Topeka & Santa Fe Railroad Emory W clark
vice-president of the First National Bank Of De
troit, and Frank D. La lame of the Philadelphia
Board Of Trade Mr.. Morawetz favored the ap-
pointment of a commission to consider the currency
question and present plan TO the next congress
He declared that If the Aldrich bill were passed II
should be limited in its operation to two years SO
that it could not become a permanent part OF the
banking Jaws
Mr. Clark declared that the bill emergency
measure not worthy of serious consideration
It would not. he said cause the banks to prepare
for panic by purchasing bonds as basis TOT
emergency currency. They would feel that theY
could watch the situation. and when danger looms
up they could buy the bonds he said He did not
believe would enough of the securities pre-
scribed in the bill to provide bonds for the banks
the bonds closely held by people who would
sell them, advance. He condemned
the plan enlarge the reserves of smaller banks
and while he said it might result in strengthening
the position of such banks II would seriously cur
tail the amount of loans they could make
Mr. La lame presented report from COM
mittee of the Philadelphia Board OF Trade against
the bill The committee opposed the prohloluon
respecting the making of loans 10 institutions IN
vi of han interested,
said that bank directors are men Of extensive
business affairs such restriction would result IN
loss Of business or of desirable directors
Mr. Morawetz opposed TO keeping bonds as
a part of the reserves OF banks saying that In
the recent stringency many banks were loaded up
with bonds. while only money would help them
The bill he said would create an artificial market
for state, county and municipal bonds such as ex-
lists for government bonds His principal objec-
ton 10 the bill because he regarded II as
measure of initiation
The only object Of the BILL he said lis 70 give
more currency and allow more expansion. 1t would
operate as a notification to banks in the summer
when money rates abnormally low that they
need not exercise care. because II they should lend
all their money, later on they could issue
more money under this law.
In all other countries he said. there is central
control by a central bank which has a monopoly
OF note issue. regulating reserves and the extern
sion Of credits. Il do not believe. he continued.
you can ever have a central bank in the United
States. 7 do not believe the people want 1t. and
| as one Of the people don't want IT, / should
consider IT very great menace TO establish in
this country n central bank. because Of its effect
upon the political conditions. because It would he
out harmony with social and business
methods"
He thought AL banks and trust companies should
be brought under n single control 10 prevent
rency troubles. The trust companies" he said.
were the principal OF the recent trouble.
They did not keep proper reserves. and they
gagged in business much risky than that OF
the national banks"
once on the statute books. he SAID tho Aldrch
bill would never get on but would be extended In
his opinion fan would he time Of plentiful
money, that there reason FOR an emer-
gency measure until next winter. He thought Con
gress should provide at once for a non-p partisan
commission to take up the question of currency
and by next winter propose legislation FOR perma-
nent currency reform system.
Mr. White opposed the bill line with bond
secured currency growing OF the Civil War.
What was begun as temporary measure, he said.
had grown TO he permanent and bonds are not
paid off becaus" they needed A basis FOR
banknotes.
II II is reasonable keep bonded debt in
order 70 provide basis for banknotes." he added.
IT is just reasonable to incur bonded debt for
the purpose when the government has no
need for the money. That is What l call fool capt
tai currency
He thought the best thing for Congress TO do
to appoint = currency commission OF ak Repre-
sentattves. Senators and six experts preferably
bankers to frame currency legislation 10 be passed
next winter The Fowler bill. he said. would be
Improvement the present bill He had been
surprised learn how little prominent and intel
Ugcnt people OF large means know about the banks
in which they deposit ther money. The Kncker-
booker Trust COMPANY" he said was rotten all
the way through, and yet the most intelligent class
o' people in New York deposited their money in
Now Haven. Apr lo-The Connecticut Bankers
Association AZ 4 meeting here to-day adopted reso-
buttons against the AIdrich currency bill in Its
amended form