Omaha daily bee., 1909-09-27
Realization It is a Big Question ant
Imperfectly Understood.
DISTINCT LINE OF THOUGHT
Bankers Inclined to Oppose the Gen.
tral Bank Idea.
TAFT COMMITTED TO THE PLAl
Commission is Also Thought 10 Favor
1t After study of Conditions
and Systems Prevailing
Abroad.

WASHINGTON, Sept 26.-In something
less than five years-to be exact, on June 30,
1914, the Aldrich- -Vreeland financial act will
expire by Limitation and unless before that
date 1t is replaced by a wisely-framed
measure of broad scope, the country will
again be in the perilous situation that is
commonly believed to have resulted in the
panic of 1907-OS. There is a general realiza-
tion of the necessity OF legislation on this
subject, but a wide difference Of opinion
as to form. Speaker Cannon believes that
a mere extension of the present law; with
perhaps a few amendments in details will
suffice; President Taft looks with favor
upon the proposition to create a great cen
tral bank and there are all sorts Of inter
mediate schemes. Probably that which
commands the greatest support will be
based upon the recommendation of the
monetary commission which has been
quietly but effectively at work for more
than a year gathering the material for the
construction of the actual legislation.
Campaign of Education.
A campaign Of education is about to be-
gin, for it is fully understood by Senator
Aldrich, who heads the commission, and
by the students OF finance that it will be
difficult to arouse the interest of the mass
of the people in the details Of this rather
abstruse subject, and that only by general
agitation can the national Legislature be
brought to the point OF action. II II re-
quired ten years to bring about revision
OF the tariff, certainly a period of less than
five years is none too long to perfect and
enact legislation on a subject so complex
and important as is involved in a general
revision of the entire financial system of
the republic. Therefore soon after the
return to America from Europe of Senator
Aldrich and Prof. Andrews and other
members of the commission, which is ex-
pected to be about the middle of next
month, preparations viii be made for the
publication of the preliminary report Of
the commission, and it is hoped that this
can be ready for submission to congress
when 1t reassembles in December. This
will be only the beginning; for the full
report is to be so comprehensive in scope
that it cannot possibly be completed with
in another year; but it will serve the pur-
pose of directing public attention to this
important subject and will afford the SEN
ators and representatives material for
study to fit themselves to grapple know
ingly with such legislation as may be
ultimately proposed by the monetary com
mission.
studying Abroad.
This commission has been engaged up
to this point in a careful study in the
European capitals Of the financial sys-
TENS of Great Britain and the principal
continental powers and a mass of data of
the greatest Importance to the students of
i
that none of these systems as a whole, is
adapted to the needs Of the United states
because of the peculiar conditions which
exist in this country, but in most of them
are found some features that may be OF
value as a foundation for the projected
new American plan Attention will be
directed to defects of the existing systems,
which has grown up by accretion, caus-
ing it to be described as patchwork and
as one no longer capable by reason of lack
of elasticity and unnecessary restrictions of
meeting the business needs of the country.
Though nominally created with the pur-
pose of dealing only with the subject OF
currency and the bond issues on which
the latter is based in large part the com.
mission has enlarged it's scope so as tC
include the national banking system, and
| It is believed that even the state banks
will be dealt with in the forthcoming re.
port. The projected great central bank will
| be fully exploited, for there is reason tc
believe that even in banking circles con,
siderable Misrepresentation exists as to the
! functions of this institution. Based on the
history OF the operations of the old
! United States bank, destroyed by Andrew
| Jackson, apprehension exists among tho
officials OF national and state banks thai
this central bank may trench upon theil
business and be a formidable competitor
so this phase of the matter will be FULLY
dealt with by the commission
Doubts Its AdaptRbIIIty.
The most substantial objection that ha,
| been advanced against that project Il
based upon a doubt whether the centra
institution would be sufficiently responsive
to emergency demands from some distan
section of the country, and the suggested
| Continued on Second Page)