Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1911-11-12
Secretary Of United States
Treasury Urges That Federal
Monetary Question Be Kept
Out Of Politics,
VIGOROUS OPPOSITION
FROM JOSEPH W. FOLK
Ey-MiSSOuri Governor Declares
That Formation of Central
Bank VIII Create AIl-Power-
fuI Money Trust,

tnv Morning Journal Special Lensed Wire
chicago, Nov. 11.-Franklin Nc
veagh. secretary of the treasury, in
an address here tonight before the
western Economic Society, gave his
endorsement to the plan of currency
reform which has been suggested to
Ne national monetary commission by
former United States Senator Nelson
". Adrch. Mr.. McVeagh declared,
however that he believed the plan
would be received with prejudice in
congress unless il contained some
provision to prevent banks from con-
| trolling stocks in other banks.
\ believe the holding Of shares in
another bank. by a bank which Is a
member of the national reserve as
ISOLATION, should be prohibited" he
said This should be made TO apply
hot only TO the corporate action of
ihe bank but to action by any substi-
mte method accomplishing the same
purpose feel sure that American
conditions are permanently opposed
10 any sembance of branch banking
and to any concentration OF bank
ownership or control.
I'VE have lived without this reform
but that merely means we have been
strong enough to endure. And we can
still live with the threat of panics
hanging over us, but why should we2
Why shouldn't congress give us re-
ief9 As long as we have the present
banking and currency system we
shall have panics and no longer. Does
not this alone create state of emerg-
Ncy9 Why should it take another
yasteful and degrading panic to i'm
rrw oorwress2
This plan as It stands, or will
stand, when presented to congress.
may be called the deliberate, season.
ed and experienced work not only
Of the monetary commission. but OF
the nation itself Many contributed
to 1t, studying all the appropriate
knowledge of the world even before
the chairman organized his celebrat-
ed tentative proposal. And then Mr..
Adrieh with remarkable practical
wisdom placed his tentative plan be-
fore the people, inviting consideration
and amendment
AS the plan stands today, it is a
wonderfully good one"
Secretary McVeagh closed his adj
dress with a plea that the monetary
question be kept entirely out of poll
ties
Nelson w. Aldrich, chairman of the
National Monetary commission, de-
Tended his plan for d national cur
feney reform and answered numer-
Gus criticisms Of the plan offered at
tOdays session Of the Western Eco
homie society Chief among the citi-
csms suggested by bankers and po-
llical economists had BEEN
Danger Of unrestrained initiation Of
credit danger of control of the ma
lonal reserve association passing in
the hands of banks and need of
Specified gold reserves.
Inc objection of +. ID. Hurlbut, a
Infago banker and former Governor
doseph W. Folk claimed the chief
dlehtl0n Of the chairman of the com
mlllee, In the hands of the bankers
O the country Mr.. Aldrich placed
nost ol the responsibility of seeing
ulal no undue initiation might result
IRON The passage of the bill.
IN the last analysis he said, the
| VI lit 4Ndiipildi iANotA NN
"1allon is the surest limitation of
ne expansion OF credit. You can't
pa@ legislation which will give man
assls S OF Institutions honesty and fl
Ss Seap' Every bank in the United
sa'es depends upon the honesty and
ssnuon of its managers. Have you so
ue confidence in your associates as
lk vi ulllk they are going to permit the
Saa,ry al to be ruined by inflation?"
me purpose of the plan was to
raHat some expansion. You cant
sin % condition like that of 1907
muout expansion and extension of
se issues. The limitations put on re-
~S, ,ouilllng BY the plan, however,
ta serve to prevent dangerous ex-
answering the claim that the gov
of ,bsnt should have greater control
on. association, Mr.. Aldrich said;
| bols bankers are the sole stock
mraeiiS' Ihey are the owners. It's
fortarhs f,slVhs are to preserve their own
e'anes and the resources OF their
man mas'uuent banks. Did you think the
msa appointed by the president could
Nons the great financial institu-
mar s oi the country better than the
hs er who have spent their lives try
man md ont how banks should be
ecs no not. Times have REQUIRED in
wan, seheration when some one
nia y y 20 put the issuing of currency
W. Ale hands Of the government.
. pee, "gfe "a mad greenback crazes. / ex-
| Ia si .ne opposition Of men who want
The Ihe power to issue notes to
| Years erhment. | fought that fight
she ago. II We are to have an is
issps whether the government shall
| he an money ana control the bank
Tba 'eeninery let It come"
iesms lon9wing are epitomes of crit
| AIirich "n9 suggestions offered the
mles X X plan by students of econo-
meetina" practical bankers az the
o o, the economic society:
nom,.s ~ Sprague, professor of eco
erb8 a. Harvard University:
ture ~ Ul9st seriously disturbing fea
eontin',o all cities has been the dis
dffernuna,he of payments between the
The eor1 sections Of the country and
mestiep iepNseauent dislocation Of he do
N''i'iiRes' # we can make