The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-03-25
HARD ON ALDRICH.

Senator Aldrich recently delivered an
address before the Economic Club Of
Providence, Is. L.. on the banking and
currency question, He made tour
OF the old West last fall, in which he
represented himself as seeker after
knowledge ON banking, finance, and
money. but in the East his tour was
said 10 he in advocacy of the central
bank idea. Whatever may have been
his purpose, the tour resulted in moth.
ing: il fell fiat. The President has ex-
plotted Aldrch as great authority on
finance, yet the country has absolutely
refused to accept him as such.
In this Providence speech. Mr. Al
drich said that he hoped "to live to
see New York, Boston or Philadelphia
the financial center of the world' He
spoke of the "great nations of this
hemisphere that fought 10 be allied
with us, and of the immense "possi-
bilities of trade in the Orient and in
reawakeucd China and added: "But
we can never trade successfully with
them until the United States. by virtue
OF its great resources, becomes the
financial center of the world.' The
implication being that this great result
was to be brought about by wise
settlement of the question of fnau-
.cial system for this country
Upon this concise statement Of the
drift of Mr.. Aldrich s speech by the
New York Journal of Commerce, that
paper makes this dcmolishipg comment,
which puts Aldrich in the position Of
an unfortunate small boy who is getting
deserved licking for reckless misin-
teTprctation of the lesson which he has
pretended but failed TO learn:
There is in this that singular inversion
OF reasoning processes so common among
our politicians who parade as statesmen.
depending upon the practical knowledge"
that they pick up and the judgments that
instead OF thorough study OF the lessons
OF history and OF the principles evolved
from the experience Of mankind. A bank
Ing and currency system Ia an agency OF
commerce and must be creation of com
merce adapted 10 Its needs. IT cannot OF
Itself. however soundly and skilfully de-
Vised, create commerce any more than
shipping can. They are both creations and
instruments OF commerce ana not creators
Of II. What is II that makes the anan-
cial center Of the world Commerce. not
banking or currency, though they are nee
cssary for It's use.
Great Britain by her trade policy has
made London the financial center OF the
world. and built UP her merchant marine.
She attracts trade from every quarter OF
the globe and sends her manufactures to
all lands. not because she has certain
banking and currency system, but because
she has had for several generations "A
commercial system that facilitates trade
instead Of hiudering it That has brought
TO her the riches of the earth and made
her capital the clearing house for IT'S eX-
changes. In return for The wealth that
comes 10 her In excess OF what goes out
from her she renders Services, In bank
ing in insurance in shipping. in invest
ment OF capital. and the policy that has
made that possible has made London the
financial center, not the Bank of London
and its notes or Lombard street. They are
creatures and servants Of the system, not
its creators and masters.
The United States. "by virtue of Its
great resources. has advantage for cul-
iivating trade with the American conti-
awakened China" such AS no other coun-
try has. but it has policy that hamp-
ers its effort at every step There is no
reason why 1t should not trade success
fully with the rest OF the world without
first becoming It's financial center 1t can
NOT become the financial center until. IL
does trade successfully" whatever its
banking and currency system may be. IF
should make haste TO promote policy
that will build up trade and develop COM
mercc until II has such use for banking
and shipping and such power of command
over them, thai II can become center Tor
the exchange OF values and settlement OF
balances. The senator from Rhode ISL
and as usual, begins at the wrong end
and reasons backward