The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1909-11-07
ALOR|CH TALKS ON
CURRENCY
Continued From Page One.)

/ CONTINUED From Page One.)
security should be requircd-furnislied
the subject of most Of the monetary
/ discussions of the time.
/ In these countries. with single
exception. ut the present time all
thoughtful men argue that the proper
manner and character Of note issue Is
no longer question or at least not
one of paramount Importance. The
conclusion has been reached that
| bank note issues should be made UNI
der the governmental control. or at
] least subject To strict governmental
| restrictions, and this can only be sue
cessfulIy done through one central
bank of issue.
Our existing system of bank note
issue IL equally unsatisfactory to
| those who believe that all banks
should have a right to issue notes to
circulate as money as freely us they
open credit on their books and that
no evil results follow legislative
grant OF this right. and to those who
are not satisfied To have the volume
of note issues dependent upon the de-
mands OF trade. II was the intention
of the formers of the legislation of
1908 to furnish an emergency remedy
that should continue only until some
permanent policy could be agreed
upon
The speaker briefly referred to the
disastrous results that followed the
financial crisis of 1907. and expressed
the conviction that with better
monetary system its widespread con-
sequences could have been avoided.
II am. of course. aware" he con-
tinued. that with the sangunc ma
turc OF the American people. whose
nervous energy IL not always con-
fined by limits of produce. we are
certain to have recurring periods of
over speculation and of abnormal in
flation of values. But am sure that
il Is quite possible by combining the
transgressions and their immediate
financial supporters to save the busi-
ness and the great financial interests
of the country from disastrous sus-
pensions of banks and a general de-
struction of credit
The senator said the power of the
great banks of Europe to prevent
panics Is lorgely in the inherent
strength of the institutions and In
the unquestioning confidence of all
SldSStS Ill tHtlI abiItS u SutttSSlulIN
take care Of any situation. Mr.. AL
drich continued:
zone Of the most important .aues-
tions with which the commission has
had to deal is rs to what weight
should be given the fact that other
countries have with unanimity adopt
ed certain policies with reference to
banking and monetary affairs. and
hnN I'm this nnifnrmitr af .xn.ri-
ence and action should be influential
in preparation of plan for our
country. We cannot afford To ignore
foreign experience. +T
I'VE are not able Mt this time To
put into definite form the character
of IA credit organization We think de-
srable for the United states: but we
can agree upon certain matters and
provisions that musts be guarded
against or eliminated from any pos
siblc scheme:
First. II would be impossible to
establish any credit organizations
that would interfere with or control
the existing banks. or whose re-
sources or credit could be used for
speculative purposes: or that could
possibly b. dominated by the finan- !
cial men or Institutions in one sec
tion NJ this country. We have many
i,narriai ccniers of varying import
ancc IN the United States between
whom natural risalries exist. and
whatever form our organization might
take II is not necessary to guard
against giving tn one banking COM
munity any advantage over another. /
Second. II Is of equal. ii not great |
err Importance To adopt some of the
more important features .of systems
that have been successful in other I
countries. have too much conf |
dence in the inherent good Judgment
and intelligence of our countrymen to |
believe that the dead political issues
of three-quarters of a century ago
could be revived. or that the ghost 7
of Andrew Jackson could he sum-
moned tn prevent contamination
that. would be advantageous to all.
Third. whatever may he the ad- (
rantages of a system of branch bank /
ing in other countries. do not think
il is possible to adopt it to existing I
conditions in the United States
Mr.. Aldrich said that as soon as .
the preliminary studies and confer /
ences can be had the commission F.
will begin preparing a plan. II was 4
evident that the commission would I
not be- able to present plan at the
coming session of congress. hut he
said II MAJ be able To make a repor,
at the beginning Of the third session .
of the present congress.