The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1911-11-21
nelson ". ALDRICH
ON BANK Reform
Brilliant Senator Delivers Mastery
ton at New Orleans.
(By Associated PrcSS.)

New Orleans, La, Nov. 21.-Former |
Senator Nelson w. Aldrich, Chairman
of the National Monetary Commission,
delivered a mastery address before
the National Bankers Convention in |
this city today, outlining his ideas as
to reforms necessary in the national
banking laws.
Mr.. Aldrich spoke in part as fol-
lows
ITO the National Monetary Commits
sion is assigned the important task Of
devising a plan by which this great
country may, in the interest of all of
its people of every class and every
section, secure that immunity, which,
for half a century, has been enjoyed
by the people of every other great
commercial nation, from the disas,
trous results of monetary panics and
acute monetary disturbances.
IF We can devise for the United
States a monetary system which will
protect the rights and afford security
to bank depositors, which will enable
the banks at all times to respond to
every legitimate demand for credit
and currency so essential for the de-
velopment of our industries-we shall
have met the expectations of the pub
lie with reference to two important
matters and have done much to create
and maintain that feeling of conf
dence in the safety and effectiveness
of banking institutions which is so
essential to our uninterrupted nation
al progress.
There is general agreement among
intelligent students of the subject
that to accomplish these beneficent
results we must provide a better re-
organization of credit, a thorough re-
construction of banking systems and
methods.
"The failures of our monetary sys-
tenn can be largely attributed:
81. To our inability to enforce that
effective cooperation of banks which
4 is necessary to protect the public in
terests as well as their own in times
of stress or crises;
"2. To the limitations and restric.
tons imposed by Anticipated or obso-
; lete laws with reference to the treat
ment of reserves, and,
"3. To a defective, inelastic and I'M
scientific system Of note-issue.
II propose today to discuss briefly
some of the salient features of the plan
to remedy these defects and prevent
failures through the organization of a
National Reserve Association.
ut is proposed to organize the banks
e of the country into local associations
and these into district associations
: each with distinctive functions and
4 each with local self-government, and
to organize all district associations
0 into the National Reserve Association
g The organization proposed is moi
q bank, but cooperative union of al
the banks of the country, for definite
: purposes and with very limited ant
$ clearly defined functions. It is, In
q effect, an extension, or evolution, o
l. the clearinghouse idea to meet thu
Y needs and requirements of the entir,
s country.
d "The plan of organization include
positive provisions:
a 81. To maintain the integrity an,
( independence of existing banks, stat
q and national. The new organization
g is outside of, superimposed upon. tn
q existing system. The proposed assc
n citation is not a bank and is not CON
/ petitor in any sense for the bushes
Of existing banks. In its OWNERSHIP
- and its domestic business it is cor
q fined strictly to banks and the govern
- ment
so. It provides clearly for an equa
ity of privileges and advantages to al
banks, great or small, wherever Il
Gated
"3. 1t provides equality in rates q
discount or rediscount to all banks
and those rates are to be uniform
throughout the country. This, it i
~ believed, will insure steadiness an
reasonableness of rates everywhere.
a. It's organization is of a forr
and character that will effectually pre-
. vent the control of its operations b
political influences, local or natlona
8. Every means has been taker
J. every safeguard adopted, to proven
beyond question the possibility of it
9 control by any corporation or comb