Arizona republican., 1908-02-23

The Aldrich bill.-if passed by con gress. will not cause any such rad ical readjustment of the monetary sys- tenn as did the other great changes just reviewed: for example, the crea tion of the national banks or the founding of the United States bank. On the other hand it is aimed. as an emergency measure, to put an end forever to any possible recurrence of such a financial panic as the country has just weathered, due to the impos- sibility of securing enough currency to meet a sudden demand. The attitude of both houses toward this proposition is epitomized in the following unpub lished statement of one of the leaders of congress:
 The bill is not intended to yield a profit to the banks. but is intended to render it unnecessary to even take the currency out. I may go farther and say to render it impossible for the national banks of the country to sus- pend payment to their creditors and at the same time escape the appoint ment of receivers to wind up their af- ldllS II SAitii al liN llelb DNti DAA fa statute book in october there would have been no suspension of payment by the banks
 VESTS BOND HOLDINGS UNDER
 ESTIMATED.
 Many new facts regarding the fin ancial work of the country have been unearthed as result of the present investigation. One of the, most sur prising of these, is the fact that the West has parted company with the East in SD far as municipal loans are concerned and now finances its own public improvements. The N. w. Harris report to Speaker Cannon again serves as authority.
 "The West is a much larger owner of bonds than is generally supposed" writes MT. Harris. and is increasing more rapidly than the East and will undoubtedly continue so to do. Muni- cipal bonds issued in the West are now nearly all purchased by western investors. while New York investors have always favored railway bonds, so that New York has never been much of a market for municipal issues. Of course municipal bonds originating in the state of New York. are bought by the New York Savings banks. How ever. I am sure that of late years there have been more municipal bonds which were issued in the state of New York which have been bought by and are now owned in the West than there have been western municipal bonds bought by. and owned in. New York. Hence. so far as the market for muni cipal bonds is concerned. their value is by no means controlled by Wall street.
 This statement. coming from one whose leadership in municipal bonds is as real. though silent. as Morgan's in industrial issues. explains the support which many western bankers are giv- ing to the Aldrich bill in spite of the assertions of its opponents that it is drafted in the interests of eastern in stitutions.
 VIEWS OF WESTERN FINANCIERS.
 One of these bankers writes:
 ''There is no doubt but We need some form of elastic currency and with this properly secured by municipal, state and county bonds as originally there is no doubt it would help great deal during the period when more currency is needed If the public could feel that $500. 00O, 900 could be issued it would have a wholesome influence and allay the fear that the banks cannot furnish a sufficient amount of currency during panic"
 Another significant extract from the correspondence on the question which is rapidly accumulat- ing here at the capital is the state