New-York tribune., 1909-11-12
GREET MIR. ALDRlCH
IN CUMJfINS"S HOME.
Cordial Reception at -Des
MOineS-Talk 10 Bankers.

Deg Moines, Iowa. Nov 11.--Senetor
Aldrich talked here tonight to the local
Bankers Club. He again discussed the
necessity for the reformation OF the bank
ing and currency laws in order TO provide
against panics like that of 1907 lie went
into details concerning the operations of
central banks I'm Europe.
This is the home of Senator Cummins.
who has shown an inclination TO sntago-
nize the Aldrich policies Mt Aldrich's
only reference to Mr.. Cummins in his
speech here was made in connection with
the name of the late Senator Allison. and
could not have aroused any but the kind
est feeling. Mr.. Aldrich the guest of
honor az bankers dinner at the Savery
Hotel j. O. Rounds. president of the
club. introduced the Rhode Island senator.
whose reception was most cordial
Mr. Aldrich spoke especially Of the
growing Importance of the West as af-
fording the best reason why the people of
Iowa should desire stable banking sys-
tenn and appealed TO them to join with
him in devising a plan that would place
the United States I'm advance of all other
nations as a financial centre.
Here he gave somewhat more attention
than elsewher" 10 the important part that
commercial paper plays in the banking
planned, was not done for the purpose OF
urging the adoption of the European plan
In the United States, but 10 indicate a
possible means OF increasing credit in case
II should be found desirable 10 go abroad
Tor suggestions looking 70 an improve
msnt over our monetary system. In the
course or his discussion of this feature of
foreign banking. Mr.. Aldrich said:
IN Germany all notes. taxed or untaxed.
rlust oe covered by an amount of specie
equal 10 one-third Of the total issue and an
amount of bankable bills equal to the other
tWo-thirds- Those bills are what we would
call commercial papers Thev must hear
rne name of two solvent parties and must
hct run for more than ninety DAYS to an
sTer the standard fixed for banksble bills
what are bankable bills there must bear
three names and must be written the same
hIlIt as 70 time as the German bills
IN Great Britain the custom is to require
tWo names OF English citizens. one OF
Whom must be acceptor OF course YOU
are aware OF the difference in terminoIosy
OF our commercial paper and their OIIr
people use prOmissOry notes either with
= single name or with indorsers No such
lnng as q prOmiSSory note is knoyn in
tne Ordinary experience OF any of those
countries They do give a form, of obIisa
ooI,a,en ItTh ~Ioh mortsages and sometimes with
note. tSiiiiSoOiJ
There, If a wholesaler sells a retailer
goods OF any kind, or a dealer Wholesale
or retail, sells 10 a customer any article
Ihs wholesaler or the merchant whoever
nf may De, makes draft upOn the p1lr-
chaser and that draft is accepted and the
paper IS known as a bill of exchange IN
bshkable and they are the foundation or
named. 10 haNo
In making this statement m vou as 20
the character of these banks 7 5o ~
want 10 leave any opportunity for snv
niiT,l S whatever II is not the
not my purpose-tO try to make anv 1art
or the American people believe that anv OF
mes iiTsis.e systems could he adopted In the
United States: certainly not without verv
important notifications And 7 am NOT
presenting 10 you tonight this matter with
view Of convincing YOU or Of nrsi,dIc-
ing YOU or leading You to think for a mo-
ment that or any of the members OF the
Commlssion believe that any of these sys-
States
The habits of the one people. the rela-
tlons wnlch exist between banks and bor-
rowers and banks and depositors. in the
twenty-five thousand independent institu-
tions In the United States. all related to
the development OF various communities
must be considered. and no system can bs
adopted in this country that does nor rec
ognize the fact that the continuous ,ris,-
enoe of these banks and the prosnsritv ~
their business must be maintained OF
course we have great difficulties 10 over
come, but We cannot overlook the condf-
tions I have named and il Is not the pur-
pose Of the commission or of any member
Of II 10 ignore st.
III we have any credit organization at all
We propose that n shall be an Organization
which shall be the servant. and not the
master of existing banks. 7 concede free
ly that any institution or organization
which we NAV adopt must he one that can
be fitted into the existing system. and any
changes that are at all radical in their nat
ure-and Y am inclined to think that in
some respects we shall have TO make some
changes that Will he scientific and radical
I'm their character be made with a
view Of adjusting them to our existing
system.