Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1909-11-12
SYSTEM OF MONEY
Senator Aldrich Addresses Des Moines
Bankers on Currency Reform.
COMMERCIAL PAPER IN EUROPE
Methods of Foreigners, While VAL
uabIe as Suggestions, Cannot BE
Adopted by United States
Because of Conditions.

DES MONIES, Ia, Nov, 11.-Senator Aid
rich talked here tonight to the local
bankers club. He again discussed the ne
cesHity for the reforma t5sH.af abe banking
and currency laws with athe end in view
fpreventing future spanics like that of
1907, and by way ofinformation went into
details concerning the operations Of CEN
trail banks In the countries of Europe
This bein gthe home of Senator Cummins
ii had been expected that Mr. Aldrich
would make some reference to that gentle
man, who has shown an inclination to an
tagonize his policies but If anything un-
complimentary was anticipated by any
persons they were disappointed. The IL
lusion to Mr., Cummins was courteous, and
being made in connection with a mention
Of the name of the late Senator Allison,
It could not have aroused any but the
kindest feelings.
Mr.. Aldrich was the guest Of honor at
a bankers dinner, which was given at the
Savery hotel. J. G. Round, president of
the club, presided and introduced the
Rhode Island senator whose reception was
most cordial.
In his address here, Mr. Aldrich spoke
especially of the growing Importance of
the west as affording the best reason
why the people of Iowa should desire a
stable banking system and he appealed
to them to join with him in devising plan
that would place the United States in ad-
vance of all other nations a financial
center. Here he gave somewhat more at
tention than elsewhere to the important
part that commercial paper PLAYS In the
banking systems of the old world. This he
explained was not done for the purpose
OF urging the adoption of the European
plan in the United States, but to indicate
a possible means, of increasing credit in
case It should be found desirable to go
abroad for suggestions looking to an i'm
prvement of our monetary system.
Commercial Paper Abroad.
In the course of his discussion OF this
feature OF foreign banking Mr., Aldrich
said:
"In Germany all notes, taxed or untaxed
must be covered by an amount Of specie
equal to one-thrd OF the total issue, and
an amount of bankable bills equal to the
other two-thirds. Those bills are what we
would call commercial paper. They must
bear the names Of two solvent parties and
must not run for more than ninety days
TO answer the standard fixed for bankable
bills In France they have a provision
that what are bankable bills there must
bear their names and must be written the
same limit as TO time as the German bills
I'm Great Britain the custom is to re-
quire two names Of English citizens, one Of
whom must be acceptor. OF course you
are aware Of the difference in terminology
OF our commercial paper and theirs Our
| people use promissory notes, either with a
single name or with endorsers. No such
thing as a promlssory note is known In
the ordinary experience OF any Of those
countries. They do give a form Of obliga-
/ ton with mortgages, and sometimes with
| collateral, which Is perhaps the closest ap-
! proclamation 10 our form Of promissory
note There, II a wholesaler sells a re-
taller goods of any kind, or a dealer,
wholesale or retail sells to a customer any
| article the wholesaler or the merchant,
whover he may be, makes a draft upon the
purchaser and that draft is accepted. The
! paper Is known as a bill of exchange. It
! is for a real transaction. and those bills
are bankable and they are the foundation
/ OF the credit system OF the countries I
have named"
Mr. Aldrich also took occasion TO explain
that In referring to foreign banking sys-
TENS he had no intention OF urging the
adoption Of any Of them.
In making this statement to you as TO
the character OF these banks do not want
to leave any opportunity for any mis-
understanding whatever" he said. 1t Is
not the purpose Of the commissioners GER
!