New-York tribune., 1908-01-12
TALKS FOR ALDRICH BILL.
Senator Hopkins Tells Why He Is
an FaCOr of Its Passage.
rE.rom The Tribune Buresu.l

washington Ian 11.-SenatOr Hopkins. of Illinois.
who is a member OF the Committee on Finance.
sneaLing 10 a representative of The Tribune re-
nIied to-day 10 the various criticisms Of the Aldr1ch
financial bill He said he could see no ground for
the assertion that the measure lacked preventiVe
qualities as it was carefully calculated TO prevent
so serious financial strinsency as inc country
recently experienced.
He Hkaned the present financial condition OF the
country to a state swept by hurricane. with many
wrecks left wake OF the storm The people
under such conditions. he said. would not De seek
ing 10 prevent a recurrence OF tornadoes. but.
learning from experience would seek in rebuilding
IN construct buildings capable OF weathering an
other storm the Aldrfch BILL drafted in the
light of recent experience, sought. he argued 10
provide against the destruction Of business from
another financial stringency.
The bill does not attempt to make any radical
change in the present banking system" said Mr.
Hopkins bat taking conditions as they are. Il
seeks in The simplest and most direct way TO pro-
vide for ample currency whenever the needs OF ths
country shall demand larger volume of currency
To- transact its business 1t seeks to make flexible
what under present conditions. Is rigid and in
elastic system.
1t is believed by those who have made q careful
study of the banking conditions Of the country that
rho Iroyfsions made for the increased emergency
currency viii meet every requirement. and will save
the country from another money famine and eonse-
ouent decentralization Of Industrial and conmerclal
conditions.
,he character of the bonds upon which the enler-
gencv currency is to he issued. is 50 framed that
the charge that il will give fictitious value TO
such bonds is not we'll taken Under existing law
only one class of bonds can be used as a basis
for circulation by national banks namely, govern
en bonds; and fact has given 20 them a ready
market and perhaps an increased market valus
The Sdrich bill instead of limiting banks which de-
sire additional currency the one class OF oonsss
names i've distinct classes OF bonds which may %
nSed rameiy: Government bonds. state bonds.
county bonds municipal city bonds, and ths
bo,6e of anv railroad which has paid dividends OF
moi less than { per per annun regularly and
ontinuouslv on it's entire capital stock for period
of not less than FIVE years previous TO the deposit
of the bonds.
This larger bond field will minimize. II II does
moi entirely prevent. any fictitious value the Sc
,acti,r of such bonds for currency purposes might
cause An additional safeguard is provided against
srrnttting speculative values TO be added 10 these
bonds bv the discretion given TO the Controller OF
the Currency under the supervision OF the Secre-
tarv Of the Treasury. in the selection or the oonds
offered by any particular bank or banks
II apprehend chat under the Adrich bill no added
,,lue will be given any class OF bonds offered
a. a basis lor this emergency currency Another
r.t that will preclude fictitious or additional val
,,es i tI,a. their will be limited In time; and
indeed the legislation provided in the oLl VIII have
a decided tendency insure that there will De no
emergency and hence call for such emergency
currency.
when the bill becomes law and the general
pubic understands that SZ500a00o Of currency can
in a DAVIS time be used to prevent a crisis IN our
monetary affairs that OF itself viii prevent sucn
,.r5sis 1t is on the same principle that a bank
dsnositsr who goes TO the bank to withdraw MS
money because OF lack of confidence in the bank,
ands ne can get his money. and has little disposl-
tion take IL away
Some critics assume that the banks IN TUT