Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-09-27
ON LAW, NOT ON DETAILS
STATESMEN STRUGGLING WITH
FINANCIAL PROBLEM.
Act Expires In
1014-Substitute Needed to Avert
Panicky Conditions.

In something less than five years-to
be exact, June 80, 1914-the Aldrich-Vree
land financial act will expire by limita-
ton, and unless before that date 1t is
replaced by wisely framed measure Of
broad scope, the country will again be in
the perilous situation that Is commonly
19O7-O8 There is a general realization
Of the necessity of legislation on this sub
ject, but a wide difference Of opinion as
to form. Speaker Cannon believes that
a mere extension Of the present law. with
perhaps a few amendments in details,
will suffice; President TAFT looks with
favor upon the proposition to create q
great central bank, and there are all
sorts Of intermediate schemes. Probably
that which commands the greatest sup
port will be based upon the recommended
tons of the monetary commission, which
has been quietly but effectively at work
for more than a year. gathering the
actual legislation.
Education of the Masses.
A campaign Of education is about to
begin, for 1t is fully understood by Sen
ator Aldrich, who heads the commission
and by the students Of finance, that 1t
will be difficult to arouse the interest of
the mass of the people in the details Of
this rather abstruse subject, and that
only by general agitation can the nation
al legislature be brought to the point Of
action. Soon after the return to Amer
lea from Europe, therefore. of Senator
Aldrich and Prof. Andrews, and other
members Of the commission, which is
expected to be about the middle Of next
month q 20
publication Of the preliminary report Of
the commission. 1t is hoped this can be
ready for submission to Congress when
it reassembles in December.
This will be only the beginning, for the
full report Is to be so comprehensive in
scope that 1t cannot possibly be COM
pleted within another year. but it will
serve the purpose Of directing public at
tention to this important subject. and
will afford the senator's and representa-
tives material for study to mt themselves
TO grapple knowingly with such legisla-
ton as may be ultimately proposed by
the monetary commission.
Research in European Capitals.
This commission has been up to this
point engaged in a careful study in the
European capitals Of the financial sys-
TENS of Great Britain and the principal
continental powers. and a mass Of data
of the greatest importance to the students
Of finance has been collected.
Attention will be directed to defects Of
the existing system. which has grown up
by accretion, causing it to be described
as patch work, and as one no longer
capable, by reason of lack Of elasticity
and unnecessary restrictions, of meeting
the business needs of the country.
Though nominally created with the pur-
pose Of dealing only with the subject of
currency and the bond issues. In which
the latter is based in large part, the COM
mission has enlarged it's scope so as to
include the national banking system. and
it Is believed that even the state banks
will be dealt with in the forthcoming re-
port. The projected great central bank
will be fully exploited, for there Is a rea-
son to believe that even In banking circles
considerable Misrepresentation exists as to
the functions Of this institution.
One Objection Urged.
The most substantial objection that has
been advanced against that project is
based upon a doubt whether one central
institution would be sufficiently respon-
sive to emergency demands from some
distant section Of the country, and the
suggested corrected measure, looking to
the creation of branches of the central
bank. has only strengthened the fear Of
the existing banks that the United States
government is to enter the field of compe-
tition with them.
The results Of recent action by Con-
troller Murray, involving. with other
things. the assumption by directors Of re-
sponsibility for every part of the bank 8
business. convinced the controller. how
ever, that with public confidence in the
banks fully restored. there is no reason
o. 49, exelA ~