The Washington times., 1909-08-16
Forthcoming Report of Mon
etary Commission Certain
to Stir II Up.
MUCH WILL DEPEND
= ON PRESIDENT TAFT
ANY Financial Scheme Suggested
by Aldrieh Will Have West
ern Opposition.

The forthcoming report of the none
tary commission. which 1t is now eX-
pected viii be made late in the regular
session Of Congress. is certain TO stir
up one Of the bitterest controversies
which has aroused the legislative branch
OF the Government IN years. 1t is looked
on in many well-advised quarters here
IS extremely doubtful whether any re
port OF the commission for a eompre-
bensive reorganization Of the banking
and currency system can be enacted
into law.
Much viii depend. Of course, on
whether President Taft comedies with
the report made by the commission. If
he comes out IN support of it. then it
may be possible TO put the legislation it
proposes through the House and Senate,
with the aid Of the Republican organi-
cation in those bodies. Unless President
Taft backs the pan it cannot pass.
The reasons FOR this are quite APP
parent 70 those who give the subject
thought. IN the first place. it is ex-
pscted that the commission Will evolve
a plan for a central bank OF issue and
that the establishment Of such a bank
VIII do away with present bond-secured
currency. Many objections will be
raised TO such a plan and all that It en-
tails.
VIII Have Opposition.
Any financial scheme proposed by
Senator Aldrich is sure to have the
strong ennnity Of many Western MEM
bers. The fight over the tariff with the
antagonism raised against Senator
Aldrich on account OF IL viii increase
this enmity.
The cry raised by Western banks that
they could not get their money out Of
the East at the time Of the 1907 depression
viii have its bearing on the situation
The opponents of the central bank are
going TO raise the argument that Sucn
an establishment is sure 10 be con-
1roned BY a few big Eastern banks ana
that the smaller western banks VIII De
left helpless. This Will stir the pretu-
dice OF many Western members OF Con-
Cress against the plan Mr. Aldrich ana
the commission are expected TO propose
Another interesting phase Of the stu
alton relates TO the effect of a central
bank Of issue plan with unlimited pow
ers OF note issues on the bonds or the
United States. Many look on this mat
ter with apprehension. The 2 per cent
bonds outstanding amount 70 about
slo0.0oo.0o0 The effect on these BONDS
* they were not available for circula-
ton, would be at once to depreclate
them
Part Of His Plan.
It is supposed to be a part Of the
plan contemplated by Dir. Aldrich TO
Increase the rate on these bonds TO
per cent by refunCllng them into 3 per
cents. This would mean a largely en-
HANGED interest account for the Gov
eminent. Il woulo not be possible 10
deprive these bonds of the circulation
privilege and keep them at par unless
they we're refunded into 3 per cents.
Senator Aldrich proposes TO have a
special session Of Congress called TO
take up the money question next fall.
something over a year hence. But there
are plenty OF students OF the situation
who think the special session will not
come, that the President viii not see
1T 70 call II and thus indOrss the none
tary commission report, and that even
IL Il does come Il will be impossible 10
reconcile the differences of ideas and get
legislation in the life Of this Congress.