New-York tribune., 1911-11-23
BANKERS DECLARE
FOR ALOR|CH PLAN
FinanCiers Urge Adoption Of Ma
tional Monetary Commissions
Scheme by Congress.
PRESENT SYSTEM ATTACKED
President SChurman Says 1t Is
the Worst in Civilized World
No Endorsement from
State Supervisors.

New Orleans Nov. General approval
Of the Aldrich plan for the reform Of the
national monetary system was given by
prominent bankers who addressed the sec
ond days session Of the thirty-seventh an
nuaI convention of the American Bankers
Association to-day. The members of the
association were urged to use their in1u-
ence IN securing the plans adoption by
Congress Many speakers from al parts
o. tho country contributed 10 the pro
ersmme.
Ex-senator Aldrich uas the target this
afternoon for q crossfre OF questions from
hundreds Of practical fnsnciers, but he
had A ready and convincing answer when
ever his plan was questioned. Mr.. Aldricn
vas emphatic in his rejection of a suEges-
ton made in the address Of Frank r. An
derson, president Of the Bank Of California.
at San Francisco that the proposed reserve
association he permitted 70 enter the open
market for the purchase Of commercial
paper 70 protect ita discount rate Such
plan would prove fatal 10 the institution.
he said
~ II
vote" that Arthur Reynolds of Chicago.
now treasurer Of the association. will be-
come chairman Of the executive council.
There are contestants whom Mr.. Reynolds
must sweep out Of the way, however, be
fore his election Is assured. II he succeeds
his place as treasurer probably VIII be nlled
bv J. Fletcher Farrell. Of Chicago
The principal address TO-DAY was deliv-
Sch 1firV11 IAN
~ Cornell University who. taking the pub
les side. 50 far as viewpoint goes. spoke
of Public Opinion on the National Re-
serve Association.
sohurrsn Attacks Present System.
President Schuruan denounced the exist
ing banking system, and placed BANKING
reform above trust regulation and tarin
revision IN importance for the good OF the
country He added.
have long been disciple and advocate
of the doctrine that tho Jnted states nes
t1A worst system OF banking ana currency
IN the whole civilized world. 1t IS lmpos-
s.ble 10 estimate and difficult 10 eXagserate
tho magnitude of the losses "nlcH tIll95
.o,,ntry has suffered from the defects ot
ite present banking and currency system
NJ other civilized country would SO long
nsve endured such waste OF us resources,
no other country is rich enough 10 nave
stood it.
President Schurman said that banking
and currency the invaluable and indis-
pensahle agencies Of all business, were
balf-century behind American business
Tsnics he said. were q national disgrace
They could be stopped. and they ought TO
he stopped. He declared that the lack OF
co-operation In American banking brought
on panics.
President Schurman was FREQ to admit
that the public was sensitive and sus-
picious in the extreme as TO the danger
Of Wall Street getting control of the Ma
tionaI Reserve Association. but he believed
that the proposed plan would keep the
people in control of the credit machinery
He continued:
The plan seems TO reduce to the lowest
possible degree the opportunity Of eXplolta-
ton by Wall Street. So far as appears, -
might be said that that possibility ls Wholly
eliminated. But in view OF the subtle
Vaccinations with which the recent MS
tory of American finance has made us ia
niliar one may hesitate TO make such
nositive assertion one may, however.
venture TO declare that II would De dliiicult
10 lay down greater precautions than those
embodied in this plan.
President Schurman believed the pro-
posed National Reserve Association would
correct the glaring evils Of our panic-breed-
ing banking system.
The proposed plan for a national reserve
association would place the banking and
currency system Of the United States in
the front ranks Of those Of the leading
nations of the world. in the opinion Of
James 3. Forgan. president OF the First
National Bank Of Chicago. Mr.. Forgan
submitted a prospective balance sheet Of
the National Reserve Association. based
on the suggestions Of ex-senator Aldrch
that its paid-in capital be s15OOOOOO0 and its
minimum legal reserve be 30 per cent Of
net liabilities. Prospective figures credited
the association with losning or invest
ing capacity Of S2,5Gooooo.
Would Help Country Banks.
The effect Of the adoption Of the Aldrich
plan upon the interest rates earnings
dividends and taxation IF hsnks--especially
Of smaller banks--was the subject Of an
address by Benjamin Strong. jr.. vice
president ~ the Bankers Trust Company.
OF New York Alr strong predicted that
the National Reserve Association would
cure objections 70 the employment Of the
credit Of country banks for the purpose of
making provision for the needs Of their
tustomers He said
The associations plan. carving with II
system Of bank acceptances and encour-
aging the redlscounting Of certain classes
Of paper. will cure objections 70 the en-
ployn1ent Of the credit Of country banks
for the purpose OF making provision for
The needs Of their customers The intro
duction II system BY which bank accept
ances and short time commercial paper
may be freely moved from one part Of
the country 10 another should. in time.
exert an influence upon money rates large
lv favorable TO interior institutions.
"Ninety-fve per cent of the business NJ
the country s. now done on credit" said
George VI. REYNOLDS. of the Continental and
Commercial Bank of Chicago He strongly
urged the National Reserve Association
plan Of stsbilzing credit and making the