The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-09-13
BANK PLAN
MAY REST WITH TAFT
By JOHN SNURE.

The attitude OF President Taft on the
question of n great central bank Of is
sue has become Of the utmost import
ance in connection with the moVemen'
on foot for the overhauIing Of the mOnf-
tary system Of the United States.
The speeches and utterances Of the
President on his trip through the West
will be watched closely for any men
ton on the subject OF financial reform
That the monetary commission is go
ing 70 report IN fave Of a central bank
of issue IS no longer seriously ques-
toned here. II IS well known that Sen
ator Aldrich is IN favor Of It. The re-
cent speech Of Representative Edward
q. Vreeland, a prominent member OF
the monetary commission. and the new
chairman OF the House Committee on
Banking and Currency, before the State
Bankers Association OF pennsylvania,
Is 5hs latest utterance which points
plainly to advocacy Of the central bank
by the monetary commission.
In his speech, Mr. Vreeland ne only
came out fatty for the central bank Of
issue. but he made clear some details
Of the plan as he believes II should be
carried out. It is generally assumed In
financial and Treasury circles here that
in speaking as he did Mr.. Nreeland was
taking care not TO put himself at Vari-
ance with what the monetary commits
sion report will be, and that his speech
was in effect a forecast of that report
II IS looked on here as the beginning OF
the missionary and educational work
which will be carried on in behalf or
the central bank
Senator Aldrich Will Talk.
Senator Aldrich, IN the speeches he
has promised 10 make in few Western
ceaters this fall, is expected to elucidate
the central bank plan, and 10 tell WIN
he favors it. 1t is well recognized here
that In doing this he will encounter no
little hostile criticism.
As outlined by Mr.. Vreeland' il Is
proposed TO have a great central bank
of issue which will have the power OF
issuing the note circulation of the coun-
try. This circulation power viii be TAX
en- away. from the 1000 national banks
IF the c0hntry The Government bond,
as a basis for the issue of circulating
notes. will be thing of tue past. The
basis of the notes undtI the new CEN
trial hank system will be gold instead OF
bonds Mr.. Vreeland has spoken, too,
for the Capitalization of the bank re
serves and for limitation Of the earn
incs Of the central bank TO a small fig
ure, its div blends. for instance, not eX-
ceeding about per cent
This amounts to a radical overhaulinE
of the cur ency and banking system OF
the country. All the indications are that
a great struggle over the questions in
volved in the central bank and the mon
etary commission report will be pre-
cipitated. The report of the commission
is due late in the next regular session
of Congress and Senator Aldrich wants
"A special session of Congress called next
fall TO take up the consideration of fis-
cal reform. In the meantime. the coun-
try is to be educated, II possible, up to
the adoption Of the central bank
Should President Taft take "A stand
for the report IF the monetary commits
sion and for the central bank idea il
would have great weight II is clear
thai Congress Will not take up the mon
etary commission plan If the President
refuses TO support a..
The opposition TO the monetary com
mission plan viii proceed from the in
terror and from the West especially.
II Is expected the small banks wiz sur
render their power 20 issue circulating
notes with much reluctance and that