Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1909-11-07
FIRST MONETARY LECTURE
Chicagoans Surprised at the
Failure of Chairman to
Advance What Was Sup
posed to Be His Central
Bank Project

tDNdEOs NOb- D"sStudlOT NELSON
w Aldrich of Rhode Island. tonight in
an address before the Chicago Com
mercial Club, delivered the first of a
series of speeches which he is to
make throughout the middle west on
the subject OF currency reform. Mr..
Aldrich is chairman of the commits
sion appointed by congress to make
a comprehensive study of the none
tary system of the United States.
To those who expected Mr.. Aldrfch
10 use this occasion for the promulga-
tion of central bank project or any
other plan of national finance. his
speech must have been in the nature
of surprise. He declared at the out
set that "the question of a definite
plan for reforming existing conditions
had not yet been taken up by the com
mission" and he added that no plan
would be adopted until after oppor-
tunity had been afforded for a Ilost
careful and exhaustive study of all the
conditions that surround the problem.
He said he has accepted the present
occasion as an opportunity to make
an earnest appeal TO representative
give to the commission the advantage
of their valuable counsel and cooper
alton in securing the adoption of a
satisfactory remedial plan. zone that
will surely conserve and promote the
vital interests of all the people of this
great nation"
He calleds upon Chicago business
men and through them upon the busi-
ness men Of the country to feel their
own responsibility. individually and
collectively. for the satisfactory out
come of the work.
Mr.. Aldrich said he regarded an
efficient organization OF the credit
and banking system of the country
as much more important than the
question of a note issue. Il am
aware" he said. that in other coun-
tries in the past, notably during the
last half of the eighteenth century
and the first half of the nineteenth,
the question of note issues. that is TO
say. who should have the right to is
sue bank notes. upon what conditions
they should be issued and what kind
nished the subject of most of the
monetary discussions of the time.
In these countries. with a sin
gle exception at the present, time, all
thoughtful men look on the proper
manner and character of the note is
sue as no longer an open question or
one of paramount Importance. The
conclusion has been reached that
bank note issues should be made un-
der governmental control. or at least
subject to strict governmental re-
strictions. and this can only be sue
cessfully done through one central
bank of issue.
Our existing system of the bank
note issue is equally unsatisfactory to
those who believe that all banks
should have the right to issue notes
to circulate as money. as freely as
they open credit on their books. and
that no evil results can follow a leg
islative grant of this right, and to
those who are not satisfied to have
the volume of note issues dependent
upon the amount of government bonds
available. rather than upon the de-
mands of trade. II was the intention
Of trainers of legislation in 1908 to
furnish an emergency remedy that
should continue only until some per-
manent policy could be agreed upon
The speaker briefly referred to the
disastrous results that followed the
financial crisis of 1907. and the con-
viction that with better monetary
system its widespread consequences
could have been avoided.
Il am, of course, aware, he con-
tinued, that with the sanguine nature
of the American people whose nervous
energy is not always confined by limits
of prudence, we are certain to have
recurring periods of over-speculation
and abnormal inflations of values. But
am sure that il is quite possible by |
confining the effects TO the transgres-
sors and their immediate financial |
supporters TO save the business and |
great financial interests of the coun-
try from disastrous suspensions of |
banks and the general destruction of |
credit
The senator said that the power of |
the great banks of Europe to prevent !
panics is largely in the inherent |
of the institutions and in the !
confidence of all classes
in their ability to successfully take |
care of any situation.