The Denison review. [volume] (Denison, Iowa) 1867-current, 1909-11-10
ALDRlCH ON CURRENCY REFORM

|ALDRICH ON CURRENCY REFORM
Sioux City Journal: Senator Al
drich's Chicago speech was intended
cs the first move in the campaign of
education which President Taft has
planned to precede the administration
campaign for currency revision. As
such twas model of pertinency.
The republican senate leader and chais-
man of the currency commission did
not appear as an advocate Of the cen-
trail bank plan, as had generally been
expected. He appeared rather to lay
the whole situation before the people
of the west and to ask their help IN
studying its needs and developing
plan for meeting them. The tone of
Senator Aldrich's speech was admir-
able. it was patriotic and sincere.
As chairman of the commission
Senator Aldrlch made trip to Europe
during the summer and gathered much
information concerning the manner in
which the European governments have
solved the problems now confronting
us. He laid this information before his
hearers. tog ther with a careful
statement Of the generally admitted
weaknesses of our present financial
system. The problem, as Senator
Aldrich described it. is to re-adjust
our banking regulations and to pro-
vide new system Of issuing bank
notes. He is not ready to say, aud
the commission is not ready to say,
what form the new legislation shall
take. His suggestion is that we
draw upon our own experience and
that Of other countries IN devising
what when completed should be the
best financial system in the world.
OF the two branches Of the subject
Senator Aldrich declared organization
of the general banking system to be
Of more Importance than the issuance
of notes. As to the latter he report
ed that with the exception Of single
country, he found the economists.
bankers and financial experts Of all
European countries agreed that bank
note issues should always be made
under governmental restrictions and
j Limitations, and that this can only be
successfully done through one central
and, exclusive bank Of issue. Room
is lett for the inference that the COM
mission is trying to work out CEN
trail bank of issue plan which will not
Initiate any European model, but will
be adapted to change conditions in
this country. While the commission
is not prepared to offer plan in de-
finite form Senator Aldrich reported
that it is agreed upon certain condi'
tions that must be guarded against in
any scheme. a. Whatever credit
organization is contfived must not in
/ terfere will. or control existing banks.
! or give one banking community any
, advantage : over another. l2) The
new organization must be kept freed
/ political influence. % Branch bank
ing is not adapted to conditions exist,
; ing in the United States. Practicall.
all objections to the central bank ar
: based on assumption that the featurel
> excluded by Senator Aldrich would b
included.
Senator Aldrich hopes the report o
: the currency commissi On may be read
= for presentation at the opening fifth
: last session of the present congress
Meanwhile it wishes to. encoura9
y study and discussion Of all phases Q
% the issue
: The commission has undertaken il
work with open mind, seeking onl
q the best solution. It would be. hell
). full if the public would undertake i
4 share of the work in the same fran
a Of mind.