Gloucester County Democrat., 1908-02-20

dQmltueQ T1al IL was not a perIecr or
permanent plan of reorganization for
the financial system of the country, he
did maintain that it was the most
comprehensive scheme that could be
the event of another stringency. He
reviewed the recent panic and spoke
approvingly of the steps taken by lead
ing bankers and by the government to
save the day. evidently referring to the
work of Morgan and his friends. AS
to the idea of a central bank of issue,
he thought this now out. of the ques-
tion, although he believed the country
would adopt such a plan in the course
of time. He also favored the plan of
giving to the banks the sole power of
issuing notes involving the retirement
of all United States notes, but explain
ed that this was not included in tie
bill because it could not hope to pass
the present congress. To provide emer-
gency notes issued by the government
would be bad, because it would create
"a popular demand for more of the
same kind of money!
The Aldrich bill, which is modelled
after the German pattern, provides for
the issue of not more than $500, ,O00
of national bank notes redeemable ID
lawful money" at the national treas
ury or its branches, the same to be dis
tributed among the banks by the sec
retary of the treasury in the proper
ton of the capital and surplus to the
total capital and surplus of all the
banks, the notes to be taxed 6 per cent
and based on accebtable state, munich
pal, county and railroad securities de-
posted by the banks with the govern
ment.
The senator admitted that our money
system might fairly be called a patch
work, but held that 1t had answered
the purpose of this nation well. He
and the committee believed that the
knowledge of such a fund of money in
reserve would prevent recurrence OF
the panic. And he warned the senate
that there remained many causes for
disquiet in Industrial and financial cir
cles," adding that sit Is probable that
there will be considerable additions to
the army of the unemployed"
Next day the bill was taken up and
the amendments of the committee
adopted pro forma except two. Aldrich
said the committee was considering
other amendments to be offered later.
Senator Bailey, minority leader on the
committee, said that there would be
no obstruction, although he was OPP
posed to all forms of money except
those issued by the government He
would issue government notes in place
of the gold certificates and transfer the
gold to the general redemption fund,
which would amount to $900,0000 900,
on which $2,500,000,0 of currency
could be fioated. He believed the AL
drich currency would be drain on the
treasury fund just the same and would
permit raid on the gold in, the treas
ury
Senator Tillman drew attention to
hitherto unnoticed feature namely.
that prescribing conditions for the re-
tirement of the proposed emergency
currency. The present legal restriction
upon the retirement of all national
bank notes would be removed This,
he pointed out, would confer upon the
Wall street controlled banks not only
the power of initiating the curreEcy.
but of contracting 1t. SO as to absolute
ly dominate every form of business in
dustry. In reply to Tillman. Aldrich
said he would not object to an amend
ment limiting to $9,000,0Q0 the amount
Of the present bank circulation to be
retired in any one month. Tillman's
amendment provides for such lfmita
tion and will force this matter into the
discussion.
Rayner. the Maryland Democrat
said the opposition would have the
consolation of knowing that the bill
was simply an emergency measure. tpf
he believed there would not be any re
lief until the entire banking system