The Washington herald., 1909-11-07
ALDRICH INYADES
ENEMY'S COUNTRY
Continued from Page One.

countries. with a single exception. at the
present time all thoughtful men, econ
omists. bankers, students of the sub
iect from every standpoint, look upon the
proper manner and character OF note
Issue as no longer an open question or
one OF paramount importance The con-
clusion has been reached with unanimity
that bank note issues should always be
made under governmental control or at
least subject TO strict governmental re
strictions and limitations and that this
can only be successfully done through
one central and exclusive bank OF issue.
Present System at Fault.
Our existing system Of bank note ennis
sions Is equally unsatisfactory to those
who believe that all banks should have
right TO issue notes 10 circulate as money
as freely as they open credits upon their
books and that no evil results can follow
a legislative grant OF this right and 10
those who are not satisfied to have the
volume OF note issues depend upon the
amount OF government bonds available
rather than upon the demands OF trade
''The desirebility OF a change In our
legislative provisions with reference 20
note issue and the necessity for improved
banking methods were brought to the at
tentiOn OF the country and Congress IN an
emphatic manner by the disastrous re-
suits which followed the financial crisis
of 1907. The extent Of the losses resulting
from that disaster can never be measured.
The principal sufferers were the business
men Of the country. great and small, and
| the mass OF wage earners, the latter
! through the loss OF employment and re-
duced wages. These people were limo
cent Of any responsibility for the panic.
| There has been. OF course, at times
! overspeculation and serious trouble for
merchants and barking institutions who
have violated fundamental laws Take,
for instance England's experience in 1890.
az the time OF the Barring failure, and the
collapse Of the copper syndicate in Paris
/ in 1851, which carried down the Compton
| d. Escompte. The action OF the Bank OF
England in cooperation with the Bank
of France and the great financial instltu-
/ tons of London in one case and the Wig
orous and efficient action Of the Bank OF
France in the other prevented an extern
sion Of the disasters The power Of the
great banks OF Europe to prevent panics
and to amellorate the conditions OF dis
trust ana uncertainty is largely IN the in
herent strength Of the institutions and in
the unquestioning confidence Of all classes
in their management and their ability
successfully to take care OF any situation.
however complicated or dangerous It may
be-"
Enters on Technical Discussion.
At this point Mr.. Aldrich entered upon
a technical discussion Of the banking sys-
TENS Of Great Britain. France, and Ger
many. and he later considered the recent
experiences and action with reference to
the monetary systems OF Italy. Japan
Switzerland. and Sweden, and explained
at some length the character and results
Of the recent bank inquiry in Germany.
He also alluded TO Scotch and Canadian
experiences.
The close OF Mr.. Aldrich's speech fol
lows:
"The work Of study and examination OF
the experience OF other countries is SIM
pltfled by the fact that there u practical