Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1909-11-17
NEW SYSTEM TO Be
SERVANT OF BANKS
SENATOR ALDRIcHs POINTS our
VIRTUES OF EuRoPE's FINAN-
ciAL SCHEMES.
ONLY REFERENCE OF RHODE
ISLANDER TO cUMMINS
MOST AMIABLE.

Des Moines. NOV 12.-Senat0r Aid
rich last night addressed the Bank
ers' club on the necessity of reforma-
ton of the banking and currency
laws. His only illusions to Senator
Cummins were courteous and, being
made in connection with the mention
of the late Senator Allison, could not
arouse anything but the kindest feel
| ing.
| The bankers dinner was given i'll
| the Slavery hotel and President
Rounds presided.
Mr.. Aldrieh declared that the grow
| ing Importance of the west afforded
the best reason why the people OF
Iowa should desire a stable banking
system; he appealed to them to join
with him In devfsfng plan that
would place the United States ahead
of all other nations as a financial
center Explaining the Importance
of commercial paper in European
banking systems, Mr. Aldrfeh SAID:
i '1n Germany all notes, taxed or
untaxed, must be covered by an
amount of specie equal to one-third OF
the total issue and an amount of
bankable bills equal to the other two.
thirds. Those bills are what we
call commercial paper They must
! bear the name of two solvent parties
and must not run more than ninety
days In France they have a provis-
ion that bankable bills must bear
three names. In Great Britain the
custom is to require two names OF
English citizens, one of whom must
be the acceptor
Our people use promissory notes,
either with a single name or with
endorsers No such thing is Known
in the ordinary experience of any of
4 u those countries. They do give a
form of obligation with mortgages,
. sometimes with collateral, which per-
haps is the closest approximation to
our promissory note. There, if a
dealer sells customer any article,
1 the wholesaler or merchant, who ever
81 he may be, makes draft upon the
purchaser and when that draft IS ac'
! cepted the paper is known as bill
!. of exchange It is for real trans
: action; those bills are bankable ana
!. are the foundation of the credit sys-
!. tenn of those countries.
q sit is not the purpose of the COM
II mission to try to make out that the
II above systems could be adopted in
the United States, certainly not with
iii out very important modification.
j. "The habits of our people, the re-
i lations between banks, borrowers, de-
e positors and the $4,000 independent
e ms. itutions in the United States, all
o are factors in the development of the
various communities and must be
IS considered, and no system can be
L. adopted in this country that does not
recognize the fact that the continuous
existence of these banks and the
!. prosperity of their business must be
maintained
II IF we have any credit organization
we propose it be the servant, not the
g master of the existing bank. Any
r organization we may adopt must be
y one fitted into the existing system
II Any changes that are radicaI-and !
3, am inclined to think that in some re
II spects we will have to make some
IL changes that will be scientific and
n radical in character-must be made
with view of adjusting them to our
y existing system