Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1910-12-10

ALDRlCH TALKS
/ ON the CURRENCY
CHAIRMAN OF MONETARY CON-
MISSION SAYS coUNTRY's FL
NANcEs NEED REFORMS.
Philadelphia, Dec. 9.-"The need
for currency reform" was discussed
by Senator Aldrich, chairman of the
national monetary commission; SEN
ator Burton, a member of the COM
mission; Assistant Secretary OF the
Treasury Andrew, former secretary
of the commission, and Director Rob
erts Of the mint, at a special session OF
the Americtn academy of political and
social science held here last night.
Senator Aldrich declared that in his
opinion the reform of the present bank
ing system Is the most important Of the
work now before the monetary COM
mission. The currency problem will
adjust itself, he said, when the bank
ing system is taken care of. He said
that many methods prescribed by law
for the management and control OF ma
tional banks have become obsolete,
and he said that the national govern
ment, having assumed control Of the
organization of credit,it is manifestly
incumbent upon it to enter at the
earliest possible moment upon such a
revision of our national banking legis-
lation as will make our methods and
practices more responsive to the de-
mands of our moder-l business life.
Continuing, Senator Aldrich said:
Presents Comparisons.
"The structural weakness and practi-
cal defects of our national banking
system is shown by the relative
growth Of national banks in the past
TWENTY-FIVE years Within this Pc
riod the number Of national banks has
increased 1885. while the number Of
state banks and trust companies has
increased 11,0s5. The capital and sur
plus of the state banks and trust COM
panies have increased in the same
time from SITS 100000 to s1.2S3O00.-
900. In manv important communities
practically all Of the banking business
is carried on ~ state trust companies.
''It is manifest that the state banks
and trust ,comDanies are better organ
lied to respond in competition to the
business demands of the communities
in which they are located"
Senator Burton said the need for
currency reform does not arise from
any ins,fHciency in the general
amount. With the exception of France
the per capita circulation in the United
States is larger than in any other great
commercial countries. The defects Of
our currency system. he said are due
to the rentention of the old method.
discarded by so many countries, sof
government currency.
Director Roberts of the mint declar-
ed that there is no pressing occasion
to deal with United States notes and
silver certificates, which, he said, are
being rapidly absorbed by the retail
trade, and there is no probability that
they will ever again embarrass the
treasury.
Roberts Presents Views.
Mr.. Roberts said in part:
"The most encouraging feature of
this campa II for ,ore scientific
currency system is the fact that it is
now generally admitted that something
is seriously wrong in the present sys-
tenn
"It has always seemed to a great
many people that if all our money was
good, and the supply increasing from
year to year in what appeared to be an
adequate amount, nothing more was
required.
Nobody can say that monetary
stock Of s35 per capita is not, on gen.
eral principles, large enough, or that
an increase from $2S to s35 in ten
years is not enough.
"That is not the point of the con.
troversy The contention is for an
elastic element in the currency, and
elasticity means contraction as well
as expansion. There must be con-
traction after expansion in order to re-
gain the power to expand again.
"We have about slS,0O0,000,00O Of
bank deposits i'll the United states and
only about $4,000, 900. 900 of money in
the country all told, in the banks and
out.
"The supply of money adjusts itself
to the usual and ordinary method of
making settlements through the banks
and clearing houses. And this elimi-
nation Of cash is all right; this system
CT clearings is sound, it is scientific, it
is economical, it is permanent. but It
never will be secure until 1t is backed
up by machinery by which the banks.
On the basis of good assets, can be
supplied with lawful money TO meet
any demands that may come upon
them.
When everybody knows .na. such
exists we will be free from
panics, as they are in all other corn-
tries where such machinery exists"
7.