New-York tribune., 1908-04-18
7EE CrPPFyCY SITUATION

4 7,o ,,renfr7ous rabIinc Of the AldriCh bill
rv +ba House Committee on Currency ana
/ Ranking Is 2 milestone on the road toWaru
sound currency reform It indicates the torlnal
abandonment Of the Aldrich bill and Is q IeC-
/ orri-7on of the fact that the sentiment Oh INC
country has SO far crystalHzed that II VIII not
/ accent an emergency bond secured currency %
3 r71re Of the defects in the existing system
--1,o+ * nrocress. The Tribune has cause 10
he satisfied with the result for It has earnest!
ornosed the Aldrich bill from the outset
Jz-f-h the Aldrich bill out Of the way the
T alternative as regards currency leglslatlon is
-,,s woodland bill or Il commission. The Irih-
mo r,raferS a commission and the bahhllS
and commercial interests are with II III lH"'
/ preference. one great reason Tor desiring
commission IS that DO one can expect lV~ii'
sound well thought our system OF currency ~
/ form 10 he secured in what remains o. Ile 81
sion For proof Of this il IS needIu OILY 10
! o1ar,i,,a tho yrpeland bill. That measure Is
neither fsh. flesh. fowl nor good red herring
i contains almost all the provisions OF the
.75,7cb hill and q long additional one which
in r,racricsl effect would probably make me
n-ap~s largely mere surplusage II po'Iu99
for y bond secured currency ana also 1oI d
f currency based on commercial paper mus
4r-vfr4r 10 rlease both schools Of thought ii
CONGRESS. hut II Is doubtful if 4 DiH VIII ever
1,e drawn which viii incorporate the lueas u
those who believe IN Unsound currency melHooS
4 and those who believe in sound CURRENCY
methods and vet be q good bill 50 far as II
..l--7ovIedcos the force Of the argument IoT
,,-1-,,o+as basod Oh commercial paper It is 2
distinct sFvauce on the Aldrich bill, for'il per
-7,f-s the banks 10 issue notes on so-neiLl-'-
which they have and not on something "l.leH
-bav have not. It IS probable. therefore lLaI
1he hanks would operate only under TINS pro
vision. and the permission 10 take OUT clIcu4a
+7oY based on bonds might better be sIrueA
+ out
B,r+ the hin shows al the marks Of haste and
iii digestion which are likely 70 characterize
anv measure drawn up near the close OF
session with desire Of haTmOnIZInG All ID
-arasrs There is. for example no provision
for q TAX on issues based upon commeTclai
naper. though the tax on notes that may %
issued on bonds Is retained What Would ne
the effect Of issuing q lot Of unIaNed ho'eS
with no redemption machinery PROVIDED sucn
as other countries which permit ISSUES oL uH
#-ova5 notes have found indispensable 10 effect
their retirement when business conditions 10
longer demand their existence. and. moreover
with the vicious iufgti0nist provision Of the
Aldricb hiH limiting retirement 10 S9ee0oo5
y month"; tt can easily he imagined.
For The issuing Of these notes secured Oy
commercial paper it is provided that clearing
House associations must be formed. each con
sistina Of ar least ten banks. with a capital
and surplus Of not less than S10o0oo9o such
organization to pass upon the character Of the
-,a-,er r,r0posed TO be used the basis OF CIR
c77Ia+ion. Would this be practicable N The
,74raj districts: No such associations exist
there now. Could they be formed so as 10 be
workable: one trouble with the Aidrich bill
,,-as that only the banks of New y ork and per
hams one or two other cities could ever have
taban ont currency under it, and Il difficulty
with The Vretland bill j. that il IS not clear
-l,.r more. than eight cr rcn of the larger cities
.,rrIG avail themselves of opportunities under
# II is iu the country districts that the press
mr.. far additional circulation at certain >";}-
IONS of The wear i most severe. II IT Wouid
-.o+ HELM the country banker the Nre=land bill
--5uId not be Of much more service practically
.,r polftfcallv than lis predecessor. There are
many other evidences Of Lasty and inadequate
consideration in the Nreelaud bill which might
-. pojured out bat these perhaps Will serve
10 show why delay and the naming OF eur
r-ucv commission would result il much better
iaarslatfOY Than is now practicable. There Is
no reason TO fear the political effect OF sucA
. course for the Democracy can only point 10
is proposaI of "a return 10 SreenDackisln.
Which has been dead with the people Tor j
generation. and. moreover, 10 party would SUI
Ter for doing what the banking and business
Z interests especially desire.