New-York tribune., 1911-10-18
ATTACKS NEW BANK PLAN AMENDMENTS TO VOTERS
Stewart Brown CrIticises Mr..
A|drIch's Reserve Project.
WOULD MAKE STOCK LOANS
Says Bullion in Treasury Should
Be Considered-opponents De-
clare This Not Vital Question.

Tho National Monetary Commission
finished its two DAYS session I'm this city
yesterday. and most Of tho members left
FOR Chicago. where sessions will be held on
Thursday and Friday. The commission
continued Yesterday 10 hear the suggestions
OF financial experts and others Nho had
expressed desire 10 give their views on
/ tho preliminary report on new banking
system for the country which was made
/ by Senator Nelson w. Adrich Of Rhode
Island. chairman Of the commission.
/ Tedor Straus treasurer Of the local
Branch Of the National Banking Reform
Association: Stewart Brown. a banker AZ
I No. 10 Broadway; Edward d. Page, repre-
seuting the currency committee OF tho
Merchants Association. and Robert y.
Kent. president Of the Passaic ~. j. State
Bank. appeared before the commission yes
terdsy. They all commended the Aldrich
plan for national reserve association, eN-
cept Mr.. Brown. who had several ohjec-
tions to offer The Brown objections
aroused Mr. StraUs. and Congressman \re'-
land OF this state. acting chairman IN the
absence OF Mr.. Aldrich. and other mem
bers Of the commission took a hand in the
spirited argument which followed.
Mr. Brown said that the country did not
suffer as much from inelasticity OF the
currency as the boarding OF it by the peo-
pie and the banks in time Of panic. lie dld
not see that the, Aldrich plan provided
remedy for this boarding. He said the
small banks throughout the country were
the greatest sinners in that respect. and
suggested that IL would be a good thing
to curtail their increase or cut the present
number in half Bankers acted Ike mem
bers Of a lynching bee in time of panic
he said and We're not responsible for their
individual acts, but acted collectively
Congressman Nreeland explained that
bankers boarded because they did not
know where they could get a further sup
ply Of currency when they had dis5ursed
the amount on hand. The establishment
OF the national reserve association under
the Aldrich plan would solve that difficulty,
he said.
Mr. Brown contended that the United
States Treasury should ue considered in
any proposed plan and that something
should be done with the large amount or
reserve Of gold and silver lying idle there
Congressman Nreeland said that the re-
serve bullion had not been taken into ac-
count in the plan. as the disposition of the
actual gold and silver was not vital
question.
Nr. Brown suggested that the proposed
national reserve association should nave
rover to loan money on stocks ard bonds
a. well as TO redlscount commercial paper.
Members OF the committee replied that TINS
would introduce the speculative element
which il Ras deemed wise TO avoid.
Mr. Straus began by attacking the atti-
t,,dc Of Mr. Brown in bringing mp such
questions. lie said that while he had
come merely 10 express the approval ana
anprociation OF the Banking Reform AsSo-
citation Of the work Of tie commission NJ
could not refrain from replying 20 Mr.
Browns suggestions.
.'I am surprised that Mr. Brown should
hiring I'D the questions of the gold and
silver reserves for discussion at such a
meeting. they arc so trivial" said Mr
straus. We cannot afford 70 curtsil the
field of the small banker What We want
TO DO is n remove the prejudice in ms
mind 10 the idea Of central bank or asso-
,istion. He misundcrstands this plan.
have studied II. and while H. takes nothing
away from the small banks in their present
roeition. il gives them the natonal reserve
association to fan back ON IN times oi
stress and Tauic. You cannot 20 too i"r IN
INV Judgment. in assisting tho small bank
This commission has outlined a most OK
ccIleut plan. which I'm thc main provides
for the reform which this country has
soroly needed for many years. Under the
Aldricb plan New York will not only be-
come q rival OF London as the money eH-
change mart of tho world. but may some
dav become her successor.
Mr.. Page ana Mi Kent appeared ar he
morning session. Mr. Page said there was
no danger Of Wall street ever getting CON
troI of the central reserve association II
tho Aldrich plsu were carried out. Mt
Kent -aid tAe plan was particularly com
r,endable from tho point of view Of The
small banker