The Washington times., 1911-09-12
PUBLIC MONETARY
HEARING TO DRAW
VIDE ATTENTION
National Commission Meets
in Washington Next
i'G Month.

The public hearings which will be
held in Washington next month by the
National Monetary Commission for the
purpose Of getting the opinion of bank
ers, business men, laboring men. and
the general public on how to reform the
banking and currency laws. promise to
attract widespread attention and to
draw numerous persons having opin-
ions on financial subjects to the Capt.
tai. Likewise, the hearings which SUBJ
committees Of the commission will con-
duct in going about the country will be
of importance.
It is expected that the information
brought out in these hearings will to &
large extent give shape to the proposed
legislation which the commission will
recommend to Congress next winter.
Doubtless there will be numerous modi-
fications of the so-called Aldrich plan
for a National Reserve Association on
the strength of what is brought out at
the forthcoming hearings.
Attitude of Aldrich.
Former Senator Aldrich, chairman Of
the commission, is veXed and sore over
the attempts to discredit the plan which
he has prompted. Especially, he dis
likes the movement which originated in
Chicago to drop the word "Aldrich"
from all relation with the plan. At the
same time he is anxious for legislation
along the general lines of his plan.
and is too sagacious TO stand in the
way Of notifications that he believes
, would facilitate passage of measure
through Congress.
1t has been realized that II currency
is to he Issued, which is not based on
bonds. then 1t becomes hard problem
to settle on what to do with the up
ward OF $700,000, 900 of 2 per cent bonds
now held by the national banks largely
as security for circulation. Various
plans for disposing of these bonds have
been suggested. but more or less OBJ
= lection has been found to all of them.
So this topic will be one of the fore
most TO be taken up at the october
meeting here.
I The most difficult question is what to
do about the State banks and trust
companies and how to arrange for
them to participate in the organiZa-
ton. The State banks and trust COM
panies will not willingly consent to
be left out. On the other hand, the
national banks, which are jealous Of
the growing business of the State
banks and trust companies, will not
them to participate in the organiza-
zation or association unless they are
ton which will be up tc the standard
OF the national banking laws. In
theory, the National Reserve Associa-
ton is going to be a great unification
OF the credit of the banking institu-
tionS Of the country, and 1t is apparent
that II IL is to be made as strong as
possible the State banks and trust Com
panies must be taken into It. At the
same time. care will have to be taken
TO keep weak institutions out.
Taxation of Notes.
Taxation of note issues is another
question to be considered. The plan
favored by Mr.. Aldrich is to levy a
tax based on the ratio of the reserve
Of the bank to demand liabilities. That
is, the higher the proportion of demand
liabilities the greater would be the tax.
Congress is never disposed to swal-
low whole the report Of commission.
Therefore, It is expected when the re-
port of the monetary commission is
made, there will be a great rush at
the Capitol to dissect it. 1t is likely
that hearings will be held by the House
Banking and Currency Committee and
the Senate Finance Committee to con-
sider the wisdom Of the report.