Connecticut western news., 1908-02-13
ALDR|CH ON HIS BILL
J. P. Morgan Says Senator's
 Speech Is Magnificent"
s5oo,o 100000 OF NEW MONEY

Proposed Currency Measure, It Is
 Pointed Out, Is Simple, Prompt,
 Efficient and Available at Forty
 eight Hours Notice.
 Washington, Feb. 12. - Senator AL drich (R. I.) addressed the senate on the financial bill that bears his name Discussion omit will continue daily un- til vote Is reached, which MT. Al rich believes will be within two weeks
 J. F. Morgan occupied Vice Presi- dent Fairbanks seat in the reserved gallery and listened attentively to MT. Aldrich He characterized the speech as magnificent" Beside Mir. Nor gan sat Charles c. Glover, president of the Riggs National bank, the repre- sentative here of the National City bank of New York
 Senator Aldrfch predicted that there would be no such depression following the recent panic as followed the panic of 1893; that in all financial centers there would shortly be a great ex- cess of currency and probably sur plus of loanable capital. Under these circumstances, he continued, 'I be lieve it to be the imperative duty of congress, in their wisdom, to provide some means of escape from another calamitous crisis. Two plans for gen. eral legislation which are prominent in Z public discussion were considered by the committee:
 Plans Considered.
 'First.-That advocated by many thoughtful students of economic his tory and teachings, who are led by the experience and practice of other commercial nations to favor some plan for central bank of issue, which would be in effect central clearing house, with very limited banking func- tions, under government control. Per sonally, believe that in time this country is likely to adopt such sys- tenn, but agree with other members of the committee that it's adoption at this time or in the near future is out of the question.
 Second supported by large number of banks and students, who maintain that our monetary system will never be placed on the proper basis until the sole power 'of issuing notes is lodged in the banks, the se- curity of such notes to be based upon a general pledge of the assets of the banks, their convertibility to be un- .dertaken by the banks and to depend upon an insurance fund. This plan involves an entire change in the char .acter of our currency and the ulti- mate retirement of outstanding Unit ed States notes and gold and silver l certificates. The committee was unan- imous in the opinion that this plan would not be likely to receive the fa- vorable consideration of congress at this session.
 Follow Germany's Example.
 After reviewing the reasons why the emergency issue of notes should be in the form of bank notes rather than an issue of treasury certificates, he said the committee on finance believed that the example of Germany was the safest precedent for them to follow and the one most likely to successful ly answer our requirement for tenn porary emergency note issue for currency which would not be perma- nent in its character and which would dd no new elements to our somewhat complicated currency scheme. The ommittee are of the opinion that the bill which they have reported answers these requirements.
 Senator Aldrich spoke also of the system of Austria Hungary, England and France and described the local conditions which made their currency schemes undesirable as a model for II fho committees bill in detail.
 It provides for possible issue of $500, ,OOO, 900 in national bank notes re- deemable by the national treasury in lawful money. These are to be se- cured by bonds similar to those per mitted as investments for Massachu setts and New York savings banks. The notes are to be distributed equita- ply and are to bear interest at the rate of one-half per cent month. The secretary of the treasury is to be the judge of the necessity for issue of the notes and the acceptability of their security.
 00,0o0ooo In Forty eight Hours.
 "The remedy we provide" said Sen ator Aldrich, lis simple, prompt and efficient. At any time within forty eight hours, if an emergency requires it, $50O,O00,OO0 of new money can be put into the channels of trade to allay public excitement and to meet ex- traordinary demands.
 '"The committee believes that this great fund, placed by the government at the disposition of the bankers and business men of the country, will have strong tendency to prevent financial crises and to preserve public and pri. yate credit at home and abroad
 Washington, Feb. 12.-The legality of the creation by the president of the