New-York tribune., 1908-01-12

districts could not afford to own bonds OF the char
acter described in Section OF the Adrich DILL
They mistaken. These country banks. 90
called. deal very largely in municipal bonds OF a4i
kinds and quite as largely-when we take INTO
consideration their capital-as do the great banks
in cities like Chicago and New York. These banks
should they desire additional or emergency cur
rency will in my Judgment, have no trouble WHAT
ever in securing bonds for basis for SUCH cir
culation.
II confess 10 surprise that conservative
newspaper should suggest commercial paper as a
basis for emergency currency. The bonds aceepieu
security for the additional circulating NOES ~,
the Aidrsch bill are defined in the bill itself sho
safeguards ere thrown around their selection, SO
that in no case can the government suner loss oy
reason of accepting them and issuing the aooluonai
currency
How could the bill be framed to aid the Con-
trolier and Secretary of the Treasury In oeterHn
ing what notes OF farmers, mechanics, merchants
and manufacturers should be selected and whae
rejected? This suggestion itself is sun1c1ent 70
show the irnpracticsbflity of taking commercial
paper as security for additional circulating notes
Again the number and variety OF such notes
would be such as make il physically Impossible
fer the officers OF the government named IN the
bill intelligently TO pass upon them. III that sus
gestion should prevail, why not go step lurohei
and accept the suggestion Of the Populsts OF hs-'
sas and Oklahoma and instead of requiring the
farmer the mechanic, the merchant ana the
butcher TO so a bank and have tner hotes-
through the nstrumentality OF the pank-sehl "
the Secretary OF the Treasury. let the government
loan directly to these people and take their notes
THE Populists of the West, in advocating the
government loan directly to the classes enumerated
have always suggested proper security Inc criics
Of the Aldrich bill do not even suggest the real
estate security that the Populists nave always
been willing TO give providing the government
would make direct loans 10 the citizen
In nv Judgment the more carefully the Adricn
biz is studied the clearer it will appear that IL
.S a-1laG No.
ton strensthens the reserves in ali national
banks located outside of reserve or central reserve
cities. That is a wise provision ana VIII very
materially aid in bringing about the results sought
TO be accomplished by enacting this bill into law
No bill that could be framed by the Finance
Committee would with unqualified and uni
versal support. Bankers and financial experts
differ as 10 the best method Of providing an ade-
Quate banking system for the United states Inc
central bank idea, with branch banks scattered
over the country, has many advocates, and strong
reasons can be sdduced in favor o. such system
Such legislation. however. is Of too radical
character 10 be undertaken at this time Inc
people have become accustomed TO the natonal
bank system with between 5000 and 1000 inde-
pendent hanks scattered over the country, and- IN
my opinion. would take unkindly TO any legislation
which would destroy them and substitute central
bank their stead
we have had two experiences in this country
with a central bank system The first was recon-
nenied by Alexander Hamilton and the second
was destroyed by Andrew Jackson As was re-
marked by a veteran legislator the other day, we
are too near the time of Andrew jackson to think
of substituting a central bank system for the
present independent national bank system in this
country.
The AIdrich bill is framed upon the recognition
Of the fact that radical legislation OF any kind
can be had at this session of Congress. 1t takes
conditions they and provides means of in
creasing the currency of national banks to the ex
tent of s25o.OooOoo and provides the machinery by
which. If the banks inteIligenty and properly
the bill having become law-this vast volume of
money can be realized and used within twenty
four hours from the time that the emergency
arises. Taking il all in ALL IL seems that il is the
best bill that can be secured this time"