The Washburn leader., 1908-02-28

0SnoeoA sa1uA 1SA1' his name. WINE ue
admitted that it was not perfect 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
devised to afford immediate relief in
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 central bank of issue,
he thought this now out of the ques-
ton, although he believed the country
would adopt such 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 explains
ed that this was not included in the
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, 100000
of national bank notes redeemable in
lawful money" at the national treas
, ury or it's 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 patch
work. but held that it had answered
the purpose of this nation we'll. 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
disuuiet in industrial and financial cir
cles,' adding that ''it is probable that
there will he 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 op-
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 100000, 600,
on which $25OO,OOO,OO0 of currency
could be foated. He believed the AL
drich currency would be drain on the
treasury fund just the same and would
permit a 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 currency.
but of contracting it, 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 100000 600 the amount
of the present bank circulation to be
retired in any one month. Tillman's
amendment provides for such limita-
tion and will force this matter into the
discussion. I
Rayner. the Maryland Democrat.
said the opposition would have the
consolation of knowing that the bill
was simply an emergency measure. but
he believed there would not be any re-
lief until the entire banking system
( rL o..