The Montgomery advertiser., 1909-09-27
MAY CHANGE BANKING PLAN Authorities Differ as to
 Policies. TAFT URGES GENERAL BANK Speaker Cannon Favors Extension
 of Present Law. Jpsn compsetisn ef Studies in Europe, Senate. AIarich of Monetary Com nissisn Win Begin Educa-
 taosaI Campaign.
TAFT URGES CENTRAL BANK

less than five years--to be exact, on June 90, I9I4-the Aldrich- -Vreeland financial act will expire by limitation, aud unless before that date 1t Is re- placed by e wisely-framed measure of broad scope, the country will again be in the periious situation that is com monly believed to have resulted in the panic of 1907-08.
 There is a general realization of the necessity of legislation on this subject but q wide difference of opinion as to form. Speaker Cannon believes that mere extension of the present law, with perhaps few amendments in details, win sufice; President Taft looks with favor upon the proposition to create a great central bank. and there are all sorts of intermediate schemes.
 Probably that which commands the Kreatest support will be based upon the recommendation of the Monetary Com mission which has been quietly but ef- fectively at work for more than e year gathering the material for the con- struction of the actual Legislation.
 Aldrfeh as Instructor.
 A campaign of education is about to begin, for it is fully understood by Senator Aldrich, who heads the Com mission and by the students of finance. that 1t will be difficult to arouse the interest of the mass of the people in
 
 ject, and that only by general agita- ton can the National Legislature be brought to the point Of action. If it required ten years to bring about revision of the tarin. certainly a pe- riod of less than five years Is none too long to perfect and enact legislation on a subject so complex and import ant as is involved in q general revision of the entire financial system of the republic.
 Therefore, soon after the return to America from Europe of Senator Ald- rich 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 re- port of the Commission. and it Is hoped that this can be ready for submission to Congress when 1t reassembles in December.
 This will be only the beginning. for the full report is to be so comprehen- sive that 1t cannot possibly be com pleted within another year; but 1t will serve the purpose of directing public attention to this important subject and win afford the Senators and Repreesntr' atiyes material for study to fit them selves to grappie knowingly with Such iegisiation as may be ultimately pro- posed by the Monetary Commission.
 Cop.=saissiOn Vfrits Europe.
 This commissions has been up to this point engaged In a careful study in tine European capitals of the financial syBtems of Great Britain and the prin- cipal continental powers and mass : of data of the greatest importance to the students of finance has been col iected. IL is realized that none of these systems as & whole Is adapted to the needs of the United States be- cause of the peculiar conditions which exist in this country. but in most of them are to be found some features that may be of value as foundation for the projected new American plan.
 Attention will be directed to defects of the existing systems, which has grown up by accretion. causing 1t 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 purpose of dealing only with the sub ject of currency and the bond issues on which the latter IS based in large part, the commission has enlarged its scope so as to include the national banking system, and 1t Is believed that even the State banks will be dealt with in the forthcoming report.
 WiIll Exploit Central Bank. N ~sAN~ will be fully exploited, for there is reason to believe that even in bank Ing circles consderabe misapprehension exists as to the functions of this in stitution. Based on the 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 husiness and be formidable compet- ftor. so this phase of the matter will be fully dealt with by the Commis- sion.
 has been advanced against that project ia based upon a doubt whether one central institution would be sufficiently responsive to emergency demands from some distant section of the country. and the suggested corrected measure, looking to the creation of branches o. the Central Bank has only strength ened the fear of the existing banks that the United States Government iS to enter the field of competition with them.
 Recent action by MT. Murray, the ComptrolIer of the Currency. involving the assumption of absolute responsi- bllity by bank directors for every part of the banks business guarding against loans without proper security Id directors and requiring the closest co-operation between the National and State bank examiners in the inspection of the operations of the banks have re- sutied. 1t Is believed. in bringing these institutions Into a much higher state of efficiency and placing them on . souIlder business basis than they nave ever before enjoyed and the Comp troller is fully convinced that with public confidence in the banks fully re- stored there is no reason to apprehend any struggle or competition for bust ness between the National and state has,Ls on the one hand and Government Central Banks on the other.
 V<iIla Prosecuting Wltneaa.
 eunfiower, Miss. Sept 26.-W. b'