Los Angeles herald., 1909-12-19
LONDON FAYORS
Il. s. BANK IDEA
TIMES PUBLISHES SENSIBLE
EDITORIAL
LEADING ENGLISH PAPER IN
DoRsEs CENTRAL PLAN
Declares Chief Obstacle to Currency
Reform Will Come from Fear of
American People for Big
Capitalists

LONDON, Dec 1S.-The Times pub
fishes a very sensible editorial on cur
rency reform in the United states
which favors the central bank idea,
while at the same time recounting the
most serious objections that have been
raised to the scheme. OF the impor-
tance of this great question to the
United States there can be no doubt
anywhere. Popular feeling in the
United States, says the Times, Is dis
tinctly prejudiced against the central
bank plan. because 1t Is generally
known that certain great banking and
insurance institutions have actually
been too much under the control or
powerful financial groups quite recent
ly, and 1t is feared that a central bank
might fall under similar influences.
The Times hopes that the labors OF
the monetary commission, which has
been making Investigations, including
extensive inquiries in Europe, into the
whole subject may prove fruitful. Inc
fact that not only Senator Aldrlch, but
j.. b. Nreeland, the chairman OF the
house of representatives bank and cur
rency committee, and other leading
members of the commission are coming
TO conclusions in favor of a central
bank is encoura sing. But 1t would be
unsafe to assume that the commission
will find it easy TO convince the people
OF Jl0 united SldlGS VI lll6 SouAluAAS9S
and expediency Of their views
Taft's Support Helpful
The support Of President Taft is, no
doubt. likely to be helpful; and, para
doxical as it may seem. the opposition
of ]. G.. Cannon may, in the minds OF
many, be a reason for supporting the
scheme. On the other hand, it is pos
sible that there are people so constl-
tuted that they might shy at any pro-
posal approved by Mr. Aldrich.
The Times is, however, inclined TO
agree with the idea that the chief OBJ
stacle which the commission and other
supporters of q central bank Wlll nave
to meet will be the fear of the people
OF the United states that such a bank
would be too powerful an instrument
in the hands of the big capitalists.
II IS certain also that there VIII be
good deal of opposition from sections
of the banking interest, particularly
in the rural districts; the question or
Capitalization of reserves and of the
disposition of the treasury balances is
likely to be troublesome, and much
tactful and judicious spade work
will have to be done by those who be-
lieve in a central bank. The essence
of the problem is to take the govern
ment out of the banking business by
creating an independent note-issuing
institution which should be strong
enough to Withstand pressure from
both politicians and financiers. The
problem is complicated by the jealousy
OF the states against all central in
stitutions But that is not insuper-
able. The Swiss precedent is hopeful.
The suspicion Of the cantons and can
tonal banks in regard to the idea of
a Swiss national bank was pround, but
g. was got over after five years Of
negotiation and education. 1t may take
double that time 10 effect the same
process of education in the United
States, but sooner or later IT will have
to be effected
Government Crisis Discussed
Hardly anything but the government
al crisis is talked Of now in England.
The Radicals are rampant, while the
Conservative and Unionist organs are
firm for the constitution as it exists
and has existed for centuries. The
mouthpiece OF the Labor party and
the advanced democracy says that
Lord Lansdowne and other shrewd
Tories realize that the issue is not the
best that could be chosen for con-
test between the two houses. Hitherto
the lords have managed their case with
considerable skill. They have thrown
out measures which have interested
only a section of the community. For
instance the rejection of the licensing
bill produced much less political wrath
I'm Scotland than in England, while
the rejection Of the Scottish Small
Holdings bill and the Land Values bin
naturally raised less commotion south
Of the Tweed. This was one of the
difficulties which faced the govern
ment In fixing upon the proper time