The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1909-02-14
CENTRAL BANK IDEA.

Whether the opinion held by a vast
majority of the people OF the country
has changed since the time of Andrew
Jackson remains to be seen. Though
the Wings bitterly revfled the hero OF
| New Orleans for putting a quietus upon
the United States bank. no serious at
tempt has ever been made to revive
that once famous institution presided
over by Nicholas Biddle. There seems
to be an effort making on the part Of
some of the moneyd men of the east at
/ the present time. however, to estab-
lish great central bank, and the mon
etary commission is working with that
end in view.
No one pretends to know what kind
Of hodgepodge Will be brought forth as
a result of the deliberations Of this
commission. J. B. Bache & Co, New
York bankers and brokers, are seem
/ ingly enthusiastic over the trend of
sentiment in the commission toward
the central bank but at the same time
doubt is expressed regarding the mat
ter owing to the example furnished by
the fedrfully and wonderfully con-
strueted Aldrich- vreeiand emergency
bill. The circular of Bache & Co. says:
''The remarks Of Mr. vreeland at the
bankers dinner last week revealed the
similar processes of a mind working
from a vigorous belief in immediate re-
adjustment, towards hesitation and de-
I
or more ago. I'm combination with Mr..
AIdrich. started in TO engraft an emer-
gency measure for currency reform
upon the statutes, he was extremely
confident that the plan he advocated
was perfectly sure to do the business
first turn Of the wheels IL clogged and
stopped. and has not moved since. Dur
ing the time intervening Mr. Vreeiand
and his associates on the currency
commission have been making a world
study of the subject; and in the ad-
dress last week he very humbly ac-
knowledged that the matter had only
begun to be touched upon by legisla-
ton. and that the assistance Of all ex-
pert thinkers must be called in. in or
der to frame a currency bill for this
country that would be at all adequate
and scientific.
AS it turns out. the Aldrich-vree-
land currency bill is not a currency bill
at all, but an entering wedge toward
the system of rediscounting, which has
been so effecthsI in other countries
especially in Germany-for the distri-
button Of credit strength. The posi-
bility Of realizing upon commercial pa
per IS presented in the present emer-
geney bill. 1t is clumsily done. fur
nishing currency for proceeds Of the
discount when what should really be
furnished is bank credits.
1T is gratifying to note from a semi
official announcement that the none
tary commission has concluded that
the central bank plan is one which |
America should adopt. 1t may be ex-
pected in view of this gratifying evil
dence that the monetary commission, |
whose members went abroad. will not !
endeavor to introduce experimental I'M |
dertakings in connection with an
American central bank. such as an en- |
deavor to link a postal savings propo- |
sition, or an effort to bolster up the |
price of government bonds released |
from national bank circulation, by any
use Of its credit. II may be said with |
out hesitation. in view of the CONVEX |
sion OF the members OF the commits |
sion 20 ideas consonant with sound ex-
perience, that the prospects of cur
rency reform IN the United States to-
day are brighter than they have been
in fifty years"
IL may be that the prospects OF cur |
rency reform are brighter than they /
have been for fifty years. but the peo- /
pie of the country have mighty little /
faith in the purpose of Nelson W. Al |
drich TO bring in an honest bill. Vree-
land. Of course. doesn't count. While 1
the country is struggling along under
the blight Of the Roosevelt panic, per-
haps it would be well for the millions
who are not financiers to sit up and |
take notice Of what is going on.