The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1909-09-27
A SYSTEM TO TAKE PLACE OF
THE PRESENT ACT MUST
BE DEVISED.
An IMPORTANT MATTER
The Expiration of the Aldrich -Vree-
land Act VIII keeessitate Action on
this Proposition by Congress Within
Five Years-Different Officials Hold
Various Views on Subject.

Washington, Sept. 26-ln something
less than five years-to be exact, on
June 80, 1s14-the Aldrich- Vreeland
financial act will expire by limitation.
and unless before that date it is re-
placed by 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 1907-0S. There is gen.
eral realization of the necessity of
legislation on this subject. Speaker
Cannon believes that mere extension
of the presinet law. with perhaps Il
few amendments in details. will suf-
flee. President Taft looks with favor
upon the proposition to create a great
central bank and there are all sorts of
intermediate schemes. Probably that
which commands the greatest sup
port will be based upon the recon-
mendations of the monetary commits
sion which has been at work for more
than a year gathering tho material for
the construction OF the actual legis-
lation.
Fully Understood.
1t is fully understood by Senator
Aldrich, who heads the commission
and by the students of finance, that
II Will be difficult to arouse interest
of the mass of people in the details of
this rather abstruse subject and that
only by general agitation can the ma
tional legislature be brought to the
point of action. II 1t required 10 years
to bring about a revision of the tar
iff. certainly period Of less than five
years is none too long to perfect and
enact legislation on a subject so COM
pick and important as Is involved In
a general revision of the entire fl
nancial system of the republic. There
fore. soon after the return to America
from Europe of Senator -Aldrieh and
Professor Andrews and other men,
bers of the commission, which Is ex-
pected to be about the middle of next
month. preparations will be made for
the publication of the preliminary re-
port of the commission. and ii is
hoped that this can be ready for sub
mission to congress when it reas-
sembies in December. This will be
only the beginning: for the full re-
port is to be so comprehensive In
scope that 1t cannot possibly be COM
pleted within another year; but 1t
will serve to direct public attention
to this subject and will afford the
senators and representatives material
for study to fit themselves to grapple
knowingly with such legislation as
may be ultimately proposed by the |
monetary commission.
Careful Study.
This commission has been IN to |
this point engaged i'm a careful study !
in the European capitals of the fl |
nancial systems of Great Britain and /
the principal continental powers and |
mass of data of the greatest i'm /
portanee to the students OF finance /
has been collected. |
1t Is realized that none of these
systems as Il 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 foundation TO: the |
projected new American plan. Atten-
tion will be directed To defects of the |
existing system which has grown up /
by accretion. causing it to be de- |
scribed as patchwork and as one no |
longer capable by reason of lack of .
elasticity and unneseccary restrictions |
of meeting the business needs of the
country.
Enlarged Scope.
Though nominally created to deal
only with the subject of currency and
The bond issues. the commission has
enlarged its scope SO as to include the
national banking system. and IL is be-
iieyed 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 to believe that even i'm
banking circles considerable misap-
prehension exists as to the functions
of this institution. Based on the his
tory of the operations of the old
United States bank. destroyed by An
drew Jackson. Apprehension exists
among the officials of national and
state banks that this central bank
may trench upon their business and
be formidable competitor, SO this
phase of the matter will be fully dealt
with by the commission. The most
substantial objection that has been ad-
Sanced against that project is based
upon a doubt whether one central in
stitution would be sufficiently re-
sponsiye TO emergency demands from
some distant section of the country
and the suggested corrected measure,
looking to the creation of branches of
l.