New-York tribune., 1909-11-07

these have been satisfactory IN marrow or
restricted circles We shall have 10 in>e,
objections or sectional and political
nature. which I viii sllude 10 later.
CONTROVERSIES over note issues and hank
have ~ The past been carried on mainly
by professional writer's and theorists. and
have been az inconclusive in their charsc-
ter 80 they have been numerous. Practical
men OF srairs. even. have not always
st-eed 90 20 the true theory and best pssc-
tce IN banking. Al al times when none
vary questions are asitated ~ discussed, a
familiar class OF crsn.s and cemagoeues
lansing sbout the outskirts Of every pub
ns discussion, appear. swift 20 parade their
views snc wares IN the public saze for
se1 pioitarion. To secure satisfactory
SUITE IN rne enc. - Is evident that we rausr
al lay aside our irejudices, our Precon-
ceiVed notions, perhaps our predisposition
70 advocate certain methods. but with a
nSed determination finally 10 agree upon
ne may deem the best in nn of SIS details
hui one which viii fairly represent the
combined wisdom OF ell.
J. have been greatly encouraged by the
fact that since tho appointment of m.
commission there hss been manifested n
very general disposition 20 wait patiently
Tor fts action before indulging in adverse
criuclsm. ] appeal earnestly 20 all those
Who believe TINT reform legislation Is
fion 81 these great Questions for the gem
oral good. and who have no personal
schemes 20 promote. 70 withhold their hnal
indement Until the whole case in ell Of its
phases can be presented 90 them.
CENTRAL BANK OF ISSUE.
Nr. Al6rich stated the advantages, in
ms opinion, cf central bank OF issue.
81 follow
~ the besinning OF our inquiry 1 had
mon, that the question OF note Issue was
most important. but further examination
rssp,,, nsS ,so ns ns 70 change my mind IN this
ssnirstloa az the credit and banking sys-
tsn of the country as much more i'm
porfsnt. J am aware that in other ooun-
sries IN the past. notably during the last
tai or Tie eighteenth century and the first
halt of' the nineteenth, fhe question OF
note issues-that IL 20 EaN. Who should
nave 1hs right 20 issue hanknotes. upon
What conditions Trey should be issues. snd
nishsd the subject of most the monetary
discussions OF The time
IN these countries. with . single escep-
non. al the present time eli fhnughfful
Fnen, economists. hsrkers students ~ IN.
subject from every standpoint. look upon
no proper manner and character of note
ore 81 paramount importance. The con-
clus1on has been reached with unanimity
that banknote tssues should alwsys he
nas>e under eovernTnental control or al
least subject 20 strict governmental re-
ran only be successfully done throL sh one
"sntIal ana exclusive hank ot issue.
.n ~ conntrE we hay had troubles snc
me ot our circulating medium extend
fNr subEtanfieiiv over our entire national
ED sot 81 100 fortunately settled many of
ne ~ezec questions upon which public
nr,,.ioa hss olEleea Ln's set narsea =
sfill left unsettled tie question Of The man
psr II note issues
tions 10 equally unsatisfactory 20 those who
oeiisNs that al bsnks should have right
.-..is 49,, 49,, -, r.sS,,s ,,no1 ,n.ir
hooks sna that no eyi results can follow
fhose who are not satishea 20 have The
TnlUms q note issues depend upon the
amount ~ government bonds availshe
rather than upon the demands of trade
isrssist,on ~ is66 ~ furnish an emergency
Fsfnecy that should continue only until
sonas permanent policy could be agreed
NAY AVERT PANIcs.
rfr aldrlch then outlined the defects
~ tns present monetary system. and
spoke ~ the disastrous results cf the
psnic of 1907, adding.
2 am. cf course aware 'hst With the
sHnguine nature ~ the Aner.csn people.
whose nervous energy is not always con-
Hred by limits OF pTudeaGe we are GER
fsin 20 have recurring PERIODS OF over
speculation snd q abnormal in1stion OF
TslLes, and that such ovcr-speculsrion and
y 1ltins,s fsllure ,, But ! sm IN. sure Ihst
fhs erecfs of such fsilures 10 the urans-
rressors ard their immediate financial sup
porters. % save the great business and
0issstrous Suspensions of banks and 6 gen
srsl destruction of credit
IN the case OF the great commercial na
riers ~ Europe where human nature mas
csrtsinly most 81 the chsraeteristies il has
m our country. no widespread financial
crisis involving . general suspension OF
rredu institutions has occurred for nearly
half 3 oenturv There has been. 81 course.
be for merchants and banking inst.tu-
flons who have violated fundamental Laws.
~ isso st the tins Of tss Bsrine failure.
end the collapse % The copper syndicate
N PARIS in lssl which carried down the
Bsak of England IN Cooperation with the
Bank OF France and the great financial
fhs vigorous and eficient action OF the
Bark % France n the other prevented an
extenslon CT TIE eisssiers r.. Ths power of
panies snd 20 amslorste The conditions OF
distrust ard uncertainty 3 largely tn the
inherent strength OF the institutions and
~ the unquestioning confidence Of all
classes 81 fhcir management and their
shilitv 10 successfully take care OF any
sftu2ticn. however complicated or danger
ous y may BE-
MIST BE NoN-PoLITIcAL.
After an elaborate technical discussion
~ the banking systems Of Europe M
Aidrich SAID:
We are rot able at this time 20 put into
definite form the character Of a credit or
garization we think desira bic for the
1-nifed Stotet. but can agree upon GER
vain matters and provisions that must he
guarded sEsinst or eliminated from any
possible scheme.
Flrs;. n would be impossible 20 establish