New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-09-27
NEW FINANCE MEASURE
Il MONETARY PROBLEM.
The National Commission May Make
Preliminary Report in December.

Washington. Sept 2s.-In something less than i've
years-to be exact, on June 50. 1a14-rhe Aldrieh-
Nreeiand financial act will expire by limitation.
and unless before that date It is replaced by
wisely framed measure of broad scope the coun-
try will again be In the perilous situation that is
commonly believed to have resulted in the panic
OF 1aO7-08
There is a general realization of the necessity
OF legislation on this subject. but wide difference
OF opinion as to form. Speaker Cannon believes
that a mere extension OF the present law. with
perhaps few amendments in details. will suffice;
President Taft looks with favor upon the PROPOSE
ton to create great central bank, and there
are all sorts of intermediate schemes. Probably
that which commands the greatest support will
be based upon the recommendations Of the None
tary Commission, which has been quietly but ef
the material for the construction of the actual
legislation.
CAMPAIGN OF EDUCATION.
campaign of education is about to begin. for
II Is fully understood by Senator Aldrtch, who
heads the commission, and by students OF finance
that IL will be difficult 70 arouse the interest OF
the mass OF the people in the details OF this rather
abstruse subject, and that only by general agita-
ton can the national legislature be brought to
the point OF action. II 1t required ten years to
bring about revision of the tariff, certainly a.
period OF less than i've years is none too long to
perfect and enact legislation on a subject so
complex and important is involved in a general
revision of the entire financial system Of the re-
public
Therefore soon after the return to America from
Europe OF Senator Aldrich and Professor Andrews
and other members OF the commission, which is
expected to be about the middle OF next month.
preparations will be made for the publication OF
the preliminary report of the commission. and II
is hoped that this can be ready for submission to
Congress when IL reassembles in December
This will be only the beginning. for the full re-
port is 70 be so comprehensive In scope that it
MOT he ate with
but IL will serve the purpose OF directing public
attention 20 this important subject and will AFFORD
the Senators and Representatives material for
study TO At themselves TO grapple knowingly with
such legislation may ultimately be proposed by
the Monetary Commission
This commission has been Up TO this point en-
gagged in a careful study in the European capitals
OF the financial systems Of Great Britain and the
principal Continental powers. and mass OF data
OF the greatest Importance to the students of
finance has been collected Il Is realized that none
OF these systems. a whole. IS adapted TO the
needs OF the United States, because Of the pc
culiar conditions which exist in this country but
in most OF them found some features that may
be OF value a foundation for the projected new
American plan. Attention will be directed 70 de-
fects of the existing system. which has grown UP
by sccretion. causing it 20 be described patch
work. and one no longer capable. by reason OF
lack OF elasticity and unnecessary restrictions. of
meeting the business needs OF the country.
COMMISSIONS ENLARGED SCOPE.
Though nominaIly created with tho purpose of
dealing only with the subject OF currency and the
bend issues. the commission has enlarged It's scope
as TO include the national banking system. and II
Is believed that even the state banks VIII b dealt
with in the forthcoming report The projected
great central hank will be fully exploited for there
Is reason believe that even In banking circles
considerable Misrepresentation exists TO the funo-
lions Of this iIstituton.
Based on tho history OF the operations OF the old
United States Bank destroyed by Andrew Jackson.
apprehension exists among the officials Of national
and state banks that this central bank may trench
upon their business and be formidable competitor,
this phase Of the matter viii be fully dealt with
by the commission
The most substantial objection that has been ad-
yanced against that project is based upon doubt
whether one central institution would be sufficiently
responsive 20 emergency demands from some dis
section OF the country. and the suggested cor
rected measure looking to the creation of branches
Of central bank has only strengthened the fear
Of the existing banks that the United States gov
eminent is enter the Aeld OF competition with
them.
Recent action by Mr.. Murray. Controller of the
Currency. involving the assumption OF absolute
responsibility by bank directors for every part OF
the banks business; guarding against loans without
proper security Co directors. and requiring the
closest cooperation between the national and state
bank examiners in the inspection OF the operations
OF the banks has resulted. II is believed. In bring
ing these institutions into much higher state of
efficiency and placing them a sounder business
basis than they have ever before enjoyed. and the
Controller Is fully convinced that with public con-
hdencc in the banks fully restored. there is rea-
son to apprehend any struggle or competition for
business between the national and state banks on
the one hand and the government central bank on
the other