The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-11-08

lance. The conclusion has been
reached with unanimity that bank
note issues should be made under gov
ernmental control, or at least sub
ject to strict governmental restrictions
and limitations, and that this can only
be successfully done through one CEN
trail exclusive bank of issue.
I'm this country we have had trou-
bles and contentious over the charac-
ter and value of our circulation me-
dunn extending substantially over our
entire national existence. The adop-
ton of the gold standard act of 1900
fortunately settled many of the vexed
questions on which public opinion
was divided. This act marked a new
era in our financial policy, but it still
left unsettled the question of the man
ner of note issues.
Nobody Satisfied.
"Our existing system of bank note
emissions is equally unsatisfactory to
those who believe that all banks should
have a right to issue notes to circulate
money as freely as they open credits on
their books, and that no evil results can
follow legislative grant of this right.
and to those who are not satisfied to
have the volume of note issues depend
upon the amount of government bonds
available rather than upon the de-
nlands of trade. 1t was the intention
of the trainers of the legislation of 1908
to furnish an emergency remedy that
should continue only until some per-
manent policy could be agreed upon"
The speaker briefly referred to the
disastrous results which followed the
financial crisis of 1907 and the convic-
ton that with better monetary sys-
tenn its widespread consequences could
have been avoided, and said:
81 am, of course aware that with the
sanguine nature of the American peo-
pie, whose nervous energy is not always
confined by limits of prudence, we are
certain to have recurring periods oil
| hation of values, and that such over
| speculation and imitation will, practical
| ly in all cases end in ultimate failure
| But am sure that it is quite possible
for us by combining the effects of such
| failures to the tranSgressors and thefI
| Immediate financial supporters. to save
| the great business and industrial inter
ests-- of the country from disastrous
| suspension of banks and a general de-
struction of credit"
HOW Panics Are Avoided.
/ The senator said the power fof the
/ great banks .zof- Europe to- proven
panics and to ameliorate the condition:
of distrust and uncertainty is largely
| in the inherent strength of the fnst1tu.
! tions and in the unquest1on1ng conn
| dence of all classes in their manage
Ernent and their ability to successfully
1 take care OIL dIty =SllooN1OAis AZ 49,
| complicated or dangerous 1t may be-
| Mr.. Aldrich entered upon a technica
discussion of the banking systems Of
Great Britain, France and Germany
and he later considered the recent ex
perience and action with reference e
| the monetary systems of Italy. Japan
Switzerland and Sweden, but explained
at some length the character and re
suits of the recent in quiry in Germany
| He also alluded to Scotch and Cana
| dian experiences, and continued.
1.-The work of study and examination
of the experience of other countries /:
simplified by the fact that there is pfac
teal uniformity of method and prin
ciple throughout the civilized world
both with reference to note issue and
| credit organization. This does no
mean, of course, that any existing sys
| tenn could be adopted by the United
States-certainly not without many es
| sentia1 notifications.
zone of the most important ques
| lions with which we have to deal is a:
to what weight should be given to tn,
fact that other countries have witt
unanimity adopted certain policies ant
principles with reference to banking
| and monetary affairs, and how far thi
uniformity Of experience and action
should be influential and controlling il
| the rraDa ration OF a nlaU for O11r conn