Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-11-12
ALOR|CH FAILS
ITO CRITICIZE
CUMM|NS
ExPECTANT l0WANS
SADLY DISAPPOINTED
Rhode Island Senator Confines
His Des Moines Address to.
Explanation Of European.
Credit Systems,


Dies Molncs, Ia, Nov. tt.-Senator
Nelson w. Aldrich. Of Rhode Island,
chairman of the National Monetary
commission, continued his series OF
western addresses on finance tonight
In a speech before the Banker club
Dcs Moincs IL the home OF Senator
Cummins, one Of tho "insurgent" re
publican leaders. hut those who ex-
pected the Rhode Island senator to
make any uncomplimentary allusion
20 the Iownn were disappointed.
Mr.. Aldrich spoke expressly Of the
growing Importance Of the west as
Hnording the best reason why people
Of Iowa should demand a stable
banking system. Tie gave more at
fention than heretofore 10 the Inn
portance OF commercial paper In the
banking systems Of Europe. In dis
cussing this feature Of foreign bank
ing. Mr.. Aidrich said;
I'm Germany all notes. taxed or UNI
taxed must be covered by nm amount
Of specie equal TO onc-third ~ tho to-
tai issue and an amount OF bankable
bills equal TO the other two-thirds.
These bills are what we would call
commercial paper. They must bear
the name OF two solvent parties and
must not run for more than 30 days
To answer the standard fixed for
bankable bills. In France, they have
n provision that what are bankable
bills there must bear three and
must have the same limit az to time
as the German bills.
In Great Britain the custom Is TO
require two names OF English, citi-
gems. each of which must he accept
or. or course. YOU are awarc of the
difference In t%erminology Of our COM
merelal paper ana theirs Our people
Use promissory notes. either with a
single name or with endorses. No
such thing az q promissory note Is
known In the older experience Of
those countries. They give a form
OF obligation with mortgages ana
sometimes with collateral, which Is
perhaps the closest approximation 90
our form Of promissory note, There,
ii d dealer soils q customer any arti-
Gle. the merchant makes a draft up-
on the purchaser and that drnft Is
accepted and the papcr Ii known as q
bill Of exchange. II Is for a real trans
action and those bills are bankable
and arc the foundation OF the credit
system of the countries ! have named,
Mr.. Aldrich explained that I'm re-
ferrinR to foreign banking systems he
had no intention OF urging the adopt
ion Of any Of them.
In making his statement To YOU
ms to the character of these hanks I
do NOT want to leave any opportunity
for any misunderstanding whatever"
he said. at IL not the purpose OF the
commisslon-it certainly Is not my
purpnse-to try 60 make any part OF
the American people believe that n
of these systems could he adopted in
the United states. eertalnl, not with
out important notifications.
THE habits Of the one people. the
relations between banks and borrow
ers and bank ana dcpositors, the 25,-
600 independent institutions In the
United states. all related TO the de-
volopmcnt of various communities
must be considered; ane no system
can be adopted In this country that
docs not recognize that the continued
existence of the banks and the pros
perity of their business must be main
taIncd.
If We have any credit or organiza-
tion, at all. We propose that II shan
be The servant and not the master of
existing banks. ANY institution or
organization that Ne may adopt must
be one that can be fittod into the eN-
listing system; and any changes at all
radical In their nnturo--and I ana in
clined to think that IN some respects
we should have TO make some changes
tina viii be- scientific ana radical In
their charactcr-must be made with
view Of adjusting them TO our *
fstine system"