The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-11-12
GROWING IMPORT
OF GREAT WEST
Senator Aldrich Emphasizes
This Point in Discussing
Currency Reform.
DOES NOT EXPECT AMERICA
TO FOLLOW OLD LINES
Urges Need of Credit System
That Is Adapted to Our Own
National Conditions.

DES MONIES. Ia, Nov. 11.-Scnator
Nelson w. Aldrch of Rhode Island,
chairman OF the national monetary com
mission, continued his series OF West.
eru addresses on finance here tonight
in q speech before the Bankers club.
Des Moines is the home of Senator
Cummings. one Of the "insurgent" Re
publican leaders. but those who cx-
pcctcd The Rhode Island senator TO
make any uncomplimcntary ailusion TO
the Iowan were disappointed,
Mr. Aldrich spoke especially Of the
growing importance of the West as af-
fording The best reason why people Of
Iowa should demand a stable banking
system.
European System.
Senator Aldrich gave more attention
than heretofore 10 the importance of
commercial paper in the banking sys-
tens of Europe. In discussing this fea
ture of foreign banking, Mr., Aldrich
said:
"ln Germany all notes. taxed or un-
taxed. must he covered by an amount
Of specie equal 10 oue-third OF the total
issue, and an amount Of bankable bulls
equal TO the other two-tbirds.
Those bills are what we would call
commercial paocr. They must bear the
name Of two solvent parties. and must
not run for more than ninety days to
answer the standard fixed for bankable
bills. In France they have n provision
that bankablc bills there must bear
three names. aud must have the same
limit as 10 time as the German bills.
In Great Britain the custom is 10 re.
quire two uamcs of English citizens, one
Of whom must be acccptor. OF course,
YOU are aware OF the difference in ter
miuoiogy of our commercial papor and
heirs. Our people use promissory notes.
either with single namo or with iu-
dorscrs. No such thing as a promis-
sory note is known III the ordinary eX.
pcricucc of those countries. a given
form of obligation, with mortgage and
sometimes with collateral, is perhaps the
closest approximation 10 our form of
promssory mole.
Foundation Of Credit.
"Thcrc. il dealer sells a customer
anv article the merchant makes "A draft
upon the pure baser. and that draft is
accepted and tho paper is known as a
bill of exchange. II is for a real trans
NctlOn; ana thoSe ulliS arc DankaDIr
and they arc the foundation of the
credit system of the countries | have
named -
Mr. Aldrich explained thai in refer
ring TO foreign banking systems nc had
no intention Of urging the adoption of
any of them.
i'In making this statement to YOU
as 10 The character Of thcs0 banks. ]
| do not want to leave any opportunity
for any Misunderstanding whatever,
be said cit is not The purpose of the
commissioner certainly is not my
purpose-to try TO make any part OF
the American people believe that any
OF these systems could be adopted iu
The United States. certainly not with
cut important notifications.
Cannot Follow Others
''Thc habits Of tho people, the rcla
tiGns between banks and borrowers and
banks and dcpositors, the 2J,oU0 indc
pendent institutions in the United
! States, all related To tho development
of various communities, must be con
| .idercd; and no system can be adopted
JH this country that does not recognize
( Y1Iat tho continuous existence OF banks