The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-11-13
ALOR|CH OBJECTS
TO FOREIGN BANKS
Boss of Senate Tells Finan-
cierS That America Must
Stand Alone.
STRINGENT LEGISLATION
le FAVORED BY RHODE ISLAND
STATESMAN AND HE FAvORS
"PUTTING UP THE 1ARS"-ls
AGAINST A TRIBUTE.


Minneapolis, Mimi, Nov. 13.-With
the United States firmly intrenched as
the great creditor nation of the world
the chief point to be looked after in
financial legislation by congress is the
establishment Of a banking system
that will take the profit of foreign ex-
changes from English banks and give
It to Americans.
This was the substance of an address
delivered last night before the bankers
OF Minneapolis and st. Paul by United
States Senator Aldrich, chairman of
the joint congressional finance CON-
mission, who is travelling about the
country feeling the pulse Of financiers
as to their needs in connection with
proposed financial legislation. Though
he did not say SO outright the infer
ence was that foreign bankers have too
much influence over American bank
erS.
Senator Aldrich declared that of the
5000 100000 worth Of goods which we
per cent is forwarded by foreign
banks. Now" he added, I'VE are
becoming such creditor nation and
the men who come here are growing to
be SO prosperous, that in another gen.
Grafton l do not know where you are
going to find borrowers. You may
find an impecunious railroad occa-
sionally, suppose. in want of money.
All Americans Capitalists.
But everybody, 1t seems to me. has
become capitalist in this country
And think, in any event, that we can
have a much more satisfactory credit
organization with reference to our for
eign business. than now exists. The
time will come in the future when the
banks of the United States, trust. will
do this business and make the profit.
instead of permitting foreign institu.
tions to do So"
Taking advantage of the fact that
large percentage Of the population Of
this section of the country is of Sean
dinavian origin. Senator Aldrich took
occasion at night, in his after dinner
speech. to review the Swedish banking
system as worthy of study in any eff.
fort at reforming our own system. He
said that most important change had
taken place in Sweden within the last
few years. and he instanced 1t with the
view. evidently. of showing that there
might not be such great difficulty in
bringing ordinary banks to accept
central bank issue If decided to be de
sirable.
Central Bank Good for Sweden.
Saying that the central bank system
had been adopted in Sweden in 1902,
he told how the twenty-seven banks
which had the right to issue had been
brought to surrender the right by what
he termed "a most peculiar provision"
requiring the national bank to dis
count the paper of other banks of is
sue at constantly diminishing rate
and ending in 1911 at 2 per cent less
than the current rates. AS a conse-
quence of this law the small banks had
he said. Immediately surrendered their
note circulation, with the result that
now there is but the one bank, the Gen.
trail, which enjoys the right Of issue.
Reference was also made to the
banking system in vogue in other
countries of Europe, where the central
bank idea uniformly prevails. but not,
as the speaker was careful to explain,
with view of influencing the views
Of any one.
No Pet Schemes, Says Senator.
Here. as elsewhere. Mr.. Aldrich dis
claimed any desire for sectional
banking system or for system that
could be utilized by politicians. He
would have system that would serve
the trade demands of the country. do
mestic and foreign, and he would have
1t of uniform and, universal benefit
cence. He asserted that the commits
sion was working to this end, but de-
clared that so far neither the commits
sion nor any member OF it had devel-
oped any pet scheme which it or he
desired to promote. I'VE are striving
to find the best possible way out of our
difficulties" he said. land we want
your help and support in this effort
F. NJ. Prince, president of the Min
neapolis clearinghouse. presided over
the meeting. There was no lack of
enthusiasm at either the day or the
night gathering.