The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-05-23
no CENTRAL BANK AT rnEsE VI.

fetal announcement that he does not
favor Central Bank at present. He
makes no promises for the future. ono
way or the other. but he has told Sec
rotary MacVeagh to inform the news
papers that he does not think the Gov
eminent should. during the present
session Of Congress-. take any action
towards the modification of our bank
ing system.
This will certainly SINCE Senator
Aldrich's feathers, for he has been
flying high on the wings of his prom
Uses to reform the banking system of
been travelling about the country.
preaching the gospel of a Central
Bank, and he has been telling the
people that the only way to assure
commercial prosperity is to establish
a strong central bank of issue, model
ed after the Bank of England.
All his promises must now be un-
fulfilled. for with no support from the
President during the present session
OF Congress, Aldrich will not have
time. before his retirement in March,
1911. to steer through Congress. any
banking reform. He may remain as
a member of the Monetary Commission,
and doubtless he will: but he must
cast his mantle upon the hack of some
Elisha when he takes his fight North
ward next March.
In this matter the President has
spoken out. and he has spoken rightly.
A central bank OF issue is not what
the United States needs at this time,
and there Is very little prospect that
we shall ever need such hank in
the future. Our monetary system is
far from ideal, and our currency is
not model. but such a bank as that
by Aldrich would do far more
harm than good.
The establishment Of Central
Bank would, in the first place, serious
ly upset our existing financial system.
A successful banking plan is not
worked out in a year, or in a decade,
but 1t Is formed by the gradual ad-
justment of moneyed interests and by
the exact balancing of industrial
needs. The Bank of EngldAd, which
Mr.. Aldrich thinks is model, has
been evolved. SO to speak. through
more than two centuries of business
It is manifestly impossible to change
The banks chartered basis without
danger to the markets Of the whole
world. and 1t is equally impossible to
our own system. or to trans
plant, the English system here without
ike danger.
The establishment Of a Central Bank
would. Furthermore. offer new ave-
Tue for the control of American finance
" Wall Street interests. Senator AL
lrich was insistent that the new bank |
should not be subject to the influence
II the New York bankers, and he de-
Jared. moro than once, that the ad-
Of the Central Bank
should be entirely divorced from all
ocal moneyed interests. This is fine
heory: but If experience teaches any
hins' 1t will be poor practice. There
las never yet been devised in this
ountry any financial institution over
which, sooner or later. a particular
'ody OF men did not exercise undue
influence, What was done twenty
ears ago, or in Grants time. will be
one to-day.
These objections hold good against
lmest any central bank, but there
at least one fundamental objection
Q the plan which Senator Aldrlch an
ounced in his Des Moines speech as
ne ono his Commission would propose
Or this country. This is the tissue OF
mergency currency based on CONNER
lal paper. than which no more dis
strous or dangerous financial expedi-
Mt could ever be suggested. Our ma
onal bank notes are none too we'll
,cured to.day;s for, under the terms az