New-York tribune., 1909-11-30
PREVENTING DISASTER

fereG. and such - We shan continue 10
suffer unless We improve our financial sys-
ten"
The arst part of the Senator's address
was mass OF fact and detail about the
English French and German banking sys-
TENS and laws and IN this. a. In his entire
speech he emphasized the great value and
EOoo sense of some kind OF central bank
under government control
He commended literally the central bank
of issue. and particularly the branch bank
system. featured by the building up q a
strong reserve with the central bank
which he said. Europeans looked upon as
q much stronger support IN times o. stress
than even large cash reserve held In the
branch bank itself
However. he Immediately let lis hearers
know that though he thought wei of that
plan. IL was not the plan of the Monetary
Commission for the prospective banking
legislation Of this country.
SYSTEM SERVANT. NOT MASTER.
no system which doesn't recognize the
Independence OF the twenty-five thousand
independent banks Of the United States
he said "can Doe applicable 70 this country.
ANY system We adopt must be the servant.
end not the master. ~ existing conditions"
Even with that mild condemnation Of the
central bank plan, however. he gave his
hearers this thought. with The preface that
n was the cruN of the whole problem: a
central institution. strengthened in every
possible way and under government con-
troll 10 extend credit literally TO every
person or institution whose soivency en-
titles him or il g. receive it
senator Aldrch went into considerable
detail in outlining 10 the diners the meth
ods of the Bank - France. which, he said,
was the bank ~ the people Of France
% seemed as II the French system would
form the basis % The commissions plan
from the enthusiasm with which Senator
Aldricn refeuod 10 The various phases of
,he history and methods OF the Bank Il
France. but again he dispelled any notion
his hearers might have formed that the
commission had plan when be said "A he
commission las not and viii not take up
the question 0f a plan Tor The United States
Lntn n can learn exactly what VIII be
best Tor alL
n would he a SLOW moving proposition. he
Faid. and one which must be settled from
a national point of view.
You cannot have prosperity in New
York and adversely in Chicago he said
III must b. for all. the same"
n had 5een said and written. said Sen
4tcr Aldrich. THAI any plan the commits
SION proposed micht be detested tecause
of political prejudice q the past, or po-
Hucal eNigencies of tho present but he
didn't imagine a. al that any plan which
or.ered thorough and practical solution
81 tho problem would be menaced by
politics.
WORLDS FINANCIAL CENTRE
Personally, ne said, ne had plan, which
WEs suggested 10 him 10y the Ambassador
10 Frauce-one which would make the
United states the financial centre and
strength OF tie world, but as 20 The details
OF idea OF that plan he SAID not word.
The monetary commission. no said, could
not reach a conclusion for many months
yet. bat when IL did il expected the support
VI the men D. addressed.
In jhe United States. saIo the senator.
periods Of oVerspocUlatioa could never be
absolutely done away with aut by studying
the methods of other countries De- though:
this country might arrive al some solution
which would largely conane its evil results
10 the people who had Violated tho funda-
mental laws a. business by their over
speculation.
speaking u EDg.and's system. ne poiutec
to the fact that on all but one occasion the
mere announcement - ile suspension of
fh" bank act. Nl,h the irAphed Issuance of
notes by the Bank Of England. had beer
sufficient 90 restor, confidence and credit.
In calling your attention 90 the expert
Fnce II these countries iu this respect
Senator Aldrich continued, Il do not wish
a. DO misunderstood. I do not believe. and
d. not think amy member Of the commits
sion believes. that We could adopt tLe sys-
TEN q any of these countries. certainly not
Kiihg-It very many material notifications"
Francis Lynde stetsou. president of the
club and the chairman ~ the evening. an
neul,ed that senator AidrIch would ausyg,- p
any QGestions - fact not ~ policy. but
not one 81 his eleven hundred auditors had
any question 10 pat.
AMBASSADORS SPEAK.
Henry White. Amba ssad0r 10 France and
Dr. David Jayne HiIi. Ambassador 10 GEL
mans. preceded the Senator with very briel
aad"csses. each - them meutioniug tire
creditabie impression made upon Ihe banA-
err g. tie countries 10 which they are a.
credited by tie inquiries a. the Monetary
Commission.
'Our financial pauics terT0Tize tle whole
civilized world said Ambassador White.
'auG iu the Gieat republic 10 NAich 4 have
been anf am sti.l Tor a short time longer ac-
CREDITED. ih. financial men were more than
pleased 10 take up w.iE our Monetary Com
mission the questions which they are solg-
ms.
Amhassasor Hil was introduced a. the
apostle Of plain IklL- and hiPL thinking.
and D.. said DO was worth while 10 haze
CROSSED the Atlantic II only TO see eleven
hundred and nly students and practitiou-
els q economy gathered Al their banqurt
sEomI IifyinE that economy" = sentiment
which WIS greeted with hearty laughter.
"Iaowcver hc ,onunaed. our future
here al the United State viii not bc de-
termined Oy the width ~ our pralr.es. nor
the wealth Of our mines. nor The extent 81
our commerce. but by tEe type OF uian We
are able 10 produce. Our Ideal American
viii continue to 5e strong. Just kindly.
brave. independont and yct peaceaolc.
mar % nature. nOi ASHAMED 70 work ana
ready 10 recognize the equal rights o. his
fellow men."
This ideal applied 70 our Influence among
lhe nations. lac said. would be strong