The Cairo bulletin., 1909-11-07
SOLICITS CO.. OPERATION
CONCLUDED from First Pagel.

on the demands of trade. The legis-
lation in 1908 was intended to furnish
| an emergency remedy that will con,
tinue only while some permanent pol
icy is being agreed upon.
With the sanguine nature of the
American people whose nervous
energy is not always confined by TIE
limits of prudence we are certain tC
have recurring periods of oyer-Specu,
lation and abnormal imitation o.
values, ending in ultimate failure
But | am sure It is possible for Us b,
combining the effects of suchfaiiures
10 the transgressors and their finan-
cial supporters, to save the country
from disastrous suspensions Of the
banks and general destruction Of
credit. In the commercial nations
of Europe, where human nature has
most Of the characteristics it mas If
our country, no financial crisis involy
ing the general SUSPENSION OF credit
institutions has occurred for nearly
half a century"
Mr.. Aldrich illustrated by citing re.
cent history how the action of the
Bank of England in cooperation with
the Bank of France and other great
financial institutions had prevented
the extension of threatening disasters
| He added: The power of the great
banks to prevent panics and ameio-
rate conditions of distrust and uncer-
tainty is largely in the inherent
strength of the institutions and I'M
questioning confidence OF all classes
in their management ana ability"
After technical description cover
ing the banking systems of England.
France and Germany, and their uni
tormity of action both in note issue
and credit organization, Aldrich said:
"The monetary system which is
best for any country is that best
adapted to the wants and needs OF It's
people, but We cannot afford to ignore
foreign experience, or fail to be bene-
fitted by the lessons Of achievements
and failures for three and half cen.
turtles of economic life. We are I'M
able now to put into definite form the
character Of credit organization we
think desirable for the United States.
hut VIC can agree upon certain mat
tiers and provisions that must lie
guarded against or eliminated from
any possible scheme:
"Frst-It would be impossible to
establish credit organizations that
would interfere with or control the
existing banks or he dominated by
financial institutions in one section
of the country
"Second-It is of great Importance
that any plan agreed upon should not
have any partisan Of political charac,
ter or bias Lets hope that the bad
precedents established in that re.
spect may have been forgotten. II,
however, it is found desirable to
adopt some features Of the systems
successful in other countries. have
too much confidence in the good judg-
ment and intelligence of our country
men to believe that the political is.
sues of three-Quarters of century
ago will be revived to present the
Of a plan advantageous
to all
"Third--Whatcvcr be the advant,
ages OF the system of branch banking
in other countries | don't think it Il
possible to adapt it TO the conditions
in the United States. The 25,000
banks now n existence are largely in
dependent institutions, whose man.
ayers are familiar with the require, |
ments Of their communities. The
people viii be unwilling to give up
the advantage cf that intimate knNvl- !
edge Of local bank managers which /,
they believe essential to their into,
eSts, There is tndcucy on the part |
ot larg banks in reserve cities to es
.abhsh community interest with cor
respondents affiliated with central in.
'titutions. This has tho advantage
VI the branch banks without being /
subject to the objections to the