The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, 1909-11-12
ALDRICH URGING
A BANK SYSTEM

Des MoineS. Iowa. Nov 11.-Sen-
ator Nelson w. Aldrich Of Rhode Is
land chairman OF the national none
tary commission, continued his series
OF western addresses on finance here
tonight In a speech before the Bank.
ers' club.
Des Moines is the home of Senator
Cummins. one of the insurgent Repub-
lican leaders, but one of those who
expected the Rhode Island senator 70
made any uncomplimentary allusion to
the Iowan We're disappointed. Mr.
A!drich spoke especially of the grow.
Ing Importance OF the West as afford
ing the best reason why people Of
Iowa should demand a stable banking
system Senator Aldrich gave more
attention than heretofore to the i'm.
portance of commercial paper in the
banking systems of Europe, In dis
cussing this feature of foreign bank
ing, Mr.. Aldrich said:
I'm Germany. all notes. taxed or un.
taxed, must be covered by an amount
of specie equal 10 one-third of the
total issue. and an amount of bank
able bills equal to the other two.
thirds. Those bills are what we would
call commercial paper. They must
bear the name Of two solvent parties.
and must not run for moro than nine.
ty days TO answer the standard fixed
for bankable bills. In France they
have provision that bankable bills
there must bear three names, and
must have the same limit as to time
as the German bills In Great Brit
ain the custom is TO require two names
of English citizens, one OF whom must
be acceDtor. OF course, you are
aware of the difference In terminology
OF our commercial paper and theirs.
Our people use promiSSory notes. eli.
ther with single name or with in
dorsers They give form OF obliga.
ton with mortgages and sometimes
with collateral which is perhaps tho
closest approximation to our form OF
promissory note There, if dealer
sells customer any article. the mer.
chant makes draft upon the purchas.
CT, and that draft Is accepted and the
paper is known as a bill of exchange
1t is for real transaction. and those
bills are bankable and they are the
foundation of the credit system of the
countries l have named"
Ahlr s1lbIIih NABldlllCu lUdl III re-
ferrlng TO foreign banking systems he
had no intention of urging the adop.
ton 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 misunderstanding whatever"
he said. 1t Is not the purpose of tho
commissioner certainly Is not my
purpose-to try to make any part OF
the American people believe that any
OF these systems could be adopted in
the United states; certainly not with,
out important notifications.
The habits of the people, the rela.
tions between banks and borrowers
and banks and deposltors, the $4,000
independent institutions in the United
States, all related TO the development
of various communities must be con.
Sidered ;and no system can be adopt.
ed In this country that does not rec.
ognize that the continuous existence
of banks and the prosperity of their
business must be maintained.
IF we have any credit organization
at all. we propose that II shall be the
servant and not the master of existing
banks Any institution or organiza.
tion that we may adopt must be one
that can be fitted into the existing
system; and any changes at all rad,
ical in their nature-and ] am inclined
To think that in some respects we
shall have to make some changes that
will be scientific and radical i'm their
characteT-must be mado with view
Of adjusting them 10 our existing sys
tenn"