Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1909-11-13
RHODE ISLANDER PLEDGES THAT
THE NATION WILL HAVE
BEST MONEY SYSTEM.
INCLINED TO LEAN
TO CENTRAL BANK

chicago, NOV. S.-Senator Nelson w.
Aldrich. chairman of the national
monetary commission, told the men,
bers of the Commercial club at a ban
quet Saturday night in the Congress
hotel that comprehensive, scientific
plan for the changing of the American
monetary system, both as to note
issues and the organization of credit,
is to result from the work of the COM
mission
Senator Aldrich, who was listened to
with the closest attention by 800 of
the commercial and financial leaders
of Chicago, declared that the commits
sion thus far had prepared no specific
plan. The preparation of plan in the
concrete, he pointed out, could come
only after a detailed study of the
worlds banking systems and after
minute consideration of the financial
needs of this country. That study is
now being given But the senator, aft
er prefacing his speech by this declara-
ton, went on to point out some of the
things which appear plainly to be
needed.
Leans to Central Bank.
The whole trend of his address
showed that he is a believer in the
central bank idea, though he did not
say so in set terms. But he dwelt up
on the fact that in other countries it
has been generally determined that
note issues should always be under
government control and that this can
only be had through a central bank.
He also pointed out the widespread
RI $50 tj,.fo ofi tow Il
lean system of note issues.
The problem Of note issues, however,
Senator Aldrich pronounced to be of
decidedly secondary Importance in
comparison with the efficient organiza-
tion of the credit and banking system.
He pointed out that it was the duty of
the commission to devise the best and
wisest financial system the world has
ever had and that in so devising it was
necessary to plan a credit system,
whereby financial panics could be con-
trolled, if not completely avoided, and
where disasters due to periods of over
speculation could be confined to the
"transgressors."
Problem Affects All.
The many difficulties of arriving at
plan for the United States which
would work to general advantage and
suit varying interests was emphasized
by the senator. He declared the prob
lem affected 90,O00,0O0 people and
$4,000 banks and that in a few years
the United States would probably
have more banking power than the
rest of the world combined.
Analysis of Senator Aldrich's speech
which is the first to be made on the
tour which be is taking through the
west to meet financial experts and
business men and to make addresses
on the problems before the commits
sion, showed the following additional
points:
The monetary commission will
make public vast amount of in
formation it is gathering on
financial system all over the world
and will invite opinions from
American financial experts on
what kind of plan should be
adopted by the commission.
No existing plan can be adopt
ed in it's entirety by the United
States.
No plan will be submitted at the
present session of congress, but at
the third session of this congress
a plan will be offered.
Shows Changes Needed.
The financial panic of 1907 prov
ed conclusively that there must be
changes in the legislative pro-
visions in regard to note issues
and that banking methods and
credit organization must be i'm
proved.
1t will be impossible to establish
a credit organization in this coun-
try that will interfere with or con-
troll existing banks
Any plan to be adopted must be
kept out of the reach of partisan
politics.
The branch banking system can
never be adapted to the United
States.
Any form of organization which
is to be created must serve the
whole country and all sections, SO
that it could not be used to build
up one locality.