New-York tribune., 1908-03-13
MR.. LODGE ON FINANCE.
Supports 4ldrich Bill, Though Pre-
ferring Central Bank.
From IN. Tribune Bureau. ]

Washington March I2-Senator Lodge made a
forceful speech in the Senate to-day IN support
the Aldrich bill Despite the dryness or 'he SUD
iect the galleries were soon crowded TO overflow
ing and the Senator received the marked atl'H-
fiot of a large attendance. Mr- Lodge sketched
entertainingIy his experience with bankers
who while fluent In theory, he said, were unaoie
TO furnish one line Of a measure they WOULD hke
to enacted. He declared his personal cohFiC-
tio, that complete reorganization of the hnancii
s.-st-r, NJ the country was needed and inevitable
and his belief that the proper system would IN
cIude central bank but he outlined the dnhcuiues
iu the way OF such reorganization, ana asse'teH
that tie enactment of the Aldrich biz Nou'd MOI
retard the accomplishment of that end lie gave
high praise to Senator AIdrich- He naintained
that the lack of profit it would afford to the na-
tionaI banks was largely accountable for their
opposition to the bill He spoke of the proposition
to guarantee the deposits in national panSs dc d
long step toward socialism and federal control Oh
everything
What was lacking during the panic" he said
was not currency but confidence. which Is always
the condition in such Men hoard only WHAT
they believe will be scarce and difficult 10 oOidi
Speaking OF the efforts Of the Treasury Depart
rnent 10 relieve the panic continued: THE
measures OF the government were awkward De-
cause we had no law TO give the government any
proper or well defined powers for dealing with
such crisis. But. however extreme or a"h"dIu u
these measures may have seemed the issue oI
Panama bonds upon which more bdnR CURRENCY
could have been issued served its purpose 1t
served its purpose SO well that very few of the
notes actually issued
Mr.. Lodge declared that the of the crisis
was the exhaustion of the worlds capital. the
enormous expansion of business and the demand
which had been made the savings of the
world. and those causes, he said, recognized
by the best English and French economists.
Speaking of asset currency, he said:
= What those who talk about asset currency
in this country want the banks to do is to bor-
without security and TO lend with security
I in favor of central bank with government
directors absolutely under government control.
It involves, however. complete remodelling Of
our entire system We have got in the habit of
making bonds a basis of currency. But
believe the debates the last year and recently
will lead TO such a reform Of banking sys-
TENS
Admitting that the Aldrich bill another
patch to be added to our patchwork financial
system, he said that a general revision Of the
banking laws impracticable at this time,
however desirable II may be
was warmly congratulated by many Of his coll
leagues.
Senator Paynter. of Kentucky, spoke in oppo-
sition TO the A1drich bill. He believed It would
be restrictive OF the rights OF all the states and
especially Kentucky. He opposed the guaranteed
ing of national bank deposits, saying such &C
rion would be detrimental 10 state banks, be-
cause, so far as Kentucky concerned. the
state legislation would not permit the guarantee
ing of deposits in state banks