The Montgomery advertiser., 1908-04-11
OPPOSITION TO
 ALDRICH BILL Commercial Interests De- nounce the Measure. A MENACE TO THE COUNTRY Business Men Appear Before the
 House Committee. Question of central Bank Discussed and One of the Speakers De-
 eIsred that the People
 Didn't want It.
A MENACE TO THE COUNTRY

Washington, April 1o.-victor Nor awetz, chairman of the Executive Board of the Atchison. Topeka and Santa Fe Railroad: Emery W. Clark. Vice-Presi- dent of the First National Bank of De- troit. and representative of the Clear ing House Association of that city. and Frank Dale La Lanne. representative of the Philadelphia Board of Trade, appeared before the Committee on Banking and Currency of the House oe Representatives today and all condemn ed the Aidrich bill and gave many rea- sons why they did not think 1t should become a law.
 Mir. Clark declared that the bill. as an emergency measure, was not worthy of serious consideration. It would not. he said, result in the banks preparing themselves for a panic by purchasing bonds as provided for in the bill as a basis of the emergency currency.
 MT. La Lame presented a report from a committee of the Philadelphia Board of Trade against the Aldrich bill. The committee was opposed to the pro- hibitfon respecting the making of loans to institutions in which directors of the bank are interested and he said that as bank directors are men of extensive business affairs such restriction would result III ellnCT. tnC AORS Oa 91sANcSD or of desirable directors.
 Mir. Moratez favored the appointment of a non-partisan committee to take up the entire subject of banking and to present a plan at the next session of Congress for legislation. He was opposed to keeping bonds as a part of the reserve of banks. saying that dur ing the recent stringency many banks were loaded up with bonds while only money would help them.
 When the committee reassembled af- ter recess. Mir. Morawetz continued his statement
 An Artificial Market. The. Aidrich bill. he said, would cfe- ate an artificial market for State, county and municipal bonds such as exists for Government bonds. His prin- cipal objection to the bill was because he regarded 1t as a measures Of eiafia- tion. %g.1
 wetz "vou can ever have a central bank in the United States. I don't be- l lieve the people want 1t, and l. as one of the people, don't want 1t. should consider it very great menace to es- tabIish in this country central bank because of Its effect upon the political conditions because 1t would be out of harmony with our social and business methods.
 He thought all banks and trust com panies should be brought under a sim l rle control to prevent currency trou- 1 bIes. The trust companies" he said. | were the principal causes of the re- cent trouble. They did not keep prop | CT reserves and they engaged in bus mess much more risky than that of the national banks"
 once on the statute books. he said,
 
 the Aldrich bill would never get on' but would be extended.
 Horace White. former editor of The New York Evening Post opposed the Aldrich bill as in line with bond se- cured currency growing out of the civil war. What was begun as temporary measure, he said. had grown to be per manent and bonds are not paid on beeause they are needed as a basis for bank notes.
 'If if is reasonable to keep a bonded debt in order to provide basis for bank notes" he said. "it is just as reasonable to incur bonded debt for the same purpose when the govern ment has no need for money That is what I call fool capital currency. He thought the best thing for Con- gress to do was to appoint currency commission of six Representatives. six Senators and six experts, preferably bankers. to frame currency legislation to be Sassed next winter.
 The Fowler bill. he said, would be an improvement on the present bill. The committee adjourned until Mon. day.