Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-09-15
REFORM LEGISLATION PROBABLY
wilt NOT BEAR NAME OF
RHODE ISLANDER.
COMMISSION MEASURE TO
De SOMEWHAT MODIFIED
Retirement Of Bond Issue, Recognition
Of stats Banks and Trust Companies
and Taxation Of Notes Among I'm
portsnt Questions to 1s Disposed by
Congress in Financial Legislation.
[special Correspondencel.

Washington. Sept. 15.-The public
hearings which will be held in Wash
ington next month by the, national
monetary commission for the purpose
Of getting the opinion Of bankers, bust
ness men, leboring men and the gen.
erai pubic on how to reform the bank
ing and currency laws promise to at
tract widespread attention and to draw
numerous persons having opinions on
financial subjects to the capital. Like
wise. the hearings which subcon1nit-
tees OF the commission will conduct In
going about the country will be of i'm
portance.
1t, is expected that the information
brought out in these hearings will to
large extent give shape to the propos-
ed legislation which the commission
Will recommend to congress next win
ter Doubtless there will be numerous
notifications of the so-called Aldrlca
plan for national reserve association
on the strength of what is. brought out
at the forthcoming hearings.
Aidr.eh 10 vexsd.
Former Senator Aldrich. Chairman Of
the attempts to discredit the plan
which lie has promoted. Especially. he
dfslikes the movement which original
ed in Chicago TO !rop the word AID
rich" from all relation with the plan
ana devise modified one which would
not bear this alleged onus. At the
same time Senator Aldrich is anxious
for legislation along the general lines
Of his plan and he is too sagacious TO
stand in the gay of modification. that
he believes would facilitate passage of
measure thru congress.
Question Of Bonds.
Several probler,s will De discussed
in the coming hearings. From the cut
set II has been realized that II cur
rency Is to he ;s.ued which is not
ba sed en- bonds. thea il becomes HARD
problem to settle OH what to do with
TIE upwards Of S70o.009.060 Of per
cent bonds nov neld By the national
bank largely as security fcr circulation.
Various plans for disposins q these
bonds have been subjected but Elore
or less objection has been found to all
OF them So this topic Will he ere OF
the foremos. to be talal UP at the &c
.oner meeting here.
state Banks Want Recognition.
The most difficult question. how
ever, is what to do about the state
banks and trust companies and how TO
arrange for them to participate IN the
organization. The state banks ana
trust companies will not willingly con-
sent 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 be
willing to have them IN the organiza-
ton or association unless they are COM
PEELED to submit to strict regulation
which will be up to the standard OF
the national banking laws. In theory,
the National Reserve Association Is 60
ing to be a great unification or the
credit of the banking institutions OF the
country and 1t is apparent that II IT Is
to be made as strong as possible the
state banks and trust companies must
be taken into 1t. 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
90 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 a commission.
Therefore, j; Is expected when the re-
port Of the monetary commission is
| made, there will be 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-
i slider the wisdom OF the report.