Waterbury evening Democrat. [volume] (Waterbury [Connecticut]) 1903-1917, 1908-02-11
ALDR|CH ON HIS BILL
J. P. Morgan Says Senator's
Speech Is Magnificent"
$780, 100000 OF NEW MONEY

Proposed Currency Measure, 1t Ii
Pointed Out, Is Simple, Prompt,
Efficient and Available at Forty
eight Hours Notice.
Washington, Feb. 11.--Senator AL
drich (R. L. addressed the senate on
the financial bill that bears his name.
Discussion on it will continue daily un-
til a vote is reached, which Mr.. AL
rich believes will be within two weeks.
J. P. Morgan occupied Vice Presi-
dent Fairbanks seat in the reserved
gallery and listened attentively to Mr..
Aldrich. He characterized the speech
as magnificent" Beside Mr.. Nor
gan sat Charles c. Glover, president
of the Riggs National bank, the repre-
sentative here of the National City
bank of New York.
Senator Aldrich predicted that there
would be no such depression following
the recent panic as followed the panic
of 1893; that in all financial centers
there would shortly be great ex-
cess Of currency and probably sur
plus Of loanable capital. Under these
circumstances" he continued, 81 be-
lieve it to be the imperative duty Of
congress, in their wisdom, to provide
some means of escape from another
calamitous crisis. Two plans for gen.
eral legislation which are prominent in
public discussion were considered by
the committee:
'First.-That advocated by many
thoughtful students Of economic his
tory and teachings, who are led by
the experience and practice of other
commercial nations to favor some plan
for central bank of issue, which
would be in effect a central clearing
house. with very limited banking func-
tions, under government control. Per-
sonally, l believe that in time this
country is likely to adopt such sys-
tenn, but | agree with other members
Of the committee that its adoption at
this time or In the near future is out
of the question.
"Second.-That supported by a large
number of banks and students, who
maintain that our monetary system
will never be placed on the proper
basis until the sole power of issuing
notes Is lodged in the banks, the Sc
curity of such notes to be based upon
general pledge Of the assets of the
banks, their convertibility to be un-
dertaken by the banks and to depend
upon an insurance fund. This plan
involves an entire change in the char
acter of our currency and the ulti-
mate retirement of outstanding Unit
ed States notes and gold and silver
certificates. The committee was unan-
imous in the opinion that this plan
would not be likely to receive the IA
vorable consideration of congress at
this session"
After reviewing the reasons why the
emergency issue Of notes should be in
the form of bank notes rather than an
issue of treasury certificates, he said
the committee on finance believed that
the example of Germany was the
safest precedent for them to follow
and the one most likely to successful
ly answer our requirement for tenn.
porary emergency note issue for a
currency which would not be perma-
nent in its character and which would
add no new elements to our somewhat
complicated currency scheme. The
committee are Of the opinion that the
bill which they have reported answers
these requirements.
Senator Aldrich spoke also Of the
system of Austria Hungary, England
and France and described the local
conditions which made their currency
schemes undesirable as a model for
this country. He then took up the
committees bill in detail.
1t provides for a possible issue OF
$500, ,O00, 900 In national bank notes re-
deemable by the national treasury In
lawful money, These are to be se-
cured by bonds similar to those per-
mitted as investments for Massachu'
sets and New York savings banks.
The notes are TO be distributed equita'
bly, and are to bear interest at the
rate Of one-half per cent a month. The
secretary Of the treasury is to be the
Judge Of the necessity for issue Of the
notes and the acceptability OF their
security.
The remedy we provide" said sen.
ator Aldrich. lis simple. prompt and
efficient. At any time within forty.
eight hours. II an emergency requires
IL, $500. 100000 Of new money can be
put into the channels Of trade TO allay
public excitement and TO meet ex.
demands.
The committee believes that this
great fund. placed by the government
at the disposition Of the bankers and
business men Of the country. win have
q strong tendency 10 prevent financial
crises and to preserve public and pri-
vate credit at home and abroad"