The Washburn leader. [volume] (Washburn, McLean County, N.D.) 1890-1986, 1911-01-20
ALDR|CH PLAN \
IS MADE PUBLIC
Senator Would Revise Cur
Monetary System.
CENTRAL BANK NOT ASKED

Reserve Association Composed Of Ma.
tjona, Banks the Principal Feature
Of the Proposed system-country to
Be Divided Into Fifteen Districts,
With a Branch Of tho Association in
Each District.
Washington, Jan. Ex-senator Mel
son w. Aldrich's long awaited "plan
for the revision of the national bank
ing legislation" as he himself calls 1t,
has been made public. 1t does not
contemplate the establishment of a
central bank. 1t is so far from what
most people have expected Mr.. AL
drich to propose that to those who
have not been in his confidence it may
come as a notable surprise.
The plan was submitted to the ma
tional monetary commission at a meet
ing called for the purpose. but SEN
ator Aldrich vas net present. There
was a suggestion almost of the tragic
in the fact that when the hour came
for the formal PRONUNCIATION OF what
Senator Aidrich is known to regard as
the GROWING constructive effort OF his
life he was hundreds of miles away,
speeding to tle South on a compul-
cory sc,rc!, fer health. His communi-
cation was presented to the cu.nmis-
sion by the vice chairman. Rerresen-
tative Vreeland of New York.
Far from recommending the insti-
tuition OF a central bank Mi, Aldrich
expressly disclaims belief in it.
"N lille we have fonnd much that
is .lmirable in the government banks
&C Europe none of them is applicable
to our needs. Good results ran, ] be-
lieve. be reached without IL central
bank"
What Mr.. Aldrich does propose is
the establishment of the Reserve As.
sociaticn of America" 81 federation of
local associations. formed nv national
banks.
Aldrich Pla in Brief
Under Senator A!drich's plan the
country would he divided into fifteen
districts, with a branch in each dis.
trict, each branch to he made up OF
local associations There would he
forty-ive directors in the reserve as
sociation, three for each branch. with
six ex-oficic directors, the secretary
of the ness ~. the comptroller of the
%currenc::;. tie secretary of commerce
and la!or ard the governor and two
deputy governors of the association.
The reserve association would be
the principal fiscal agent and deposi-
tary of the government. would fix
rates of discount and eventually its
notes would replace those of national
banks, which would gradually be re
tired and not be reissued.
In addition to rights now enjoyed
national hanks would be authorized to
accept commercial paper having not
more than ninety days to run, to the
extent of cne-half the capital and sur
plus of the banks.
Two new classes of national banks
are provi.cl foT. one to have savings
departments and make loans on real
estate and another to exercise the
functions of trust companies.
Currency emergencies would be met
by a system of mutual support, in
which all members OF the association
would participate.
Reserve Find for Earnincs,
= National banks having a minimum
of $4,000 may subscribe to
stock in the reserve association to the
amount of rs per cent of its own
stock. Earnings of the association
are to go into a reserve fund and to
be divided between the members and
the government in designated proper
In addition to authority to issue
to replace those of national
banks the reserve association would
have authority to issue additional Cir
culating notes and the whole or any
part of the first 500, 100000 of such
additional notes would pay a tax Of 8
per CEN to the government above
500, 900, 1000 and not more than $780,
0O0, 900 could be ISSUED at an annual
tax of 4 per cent, and above $2OO,OO0,-
900 and not more than $4,000 0 900, at
a tax of 5 per cent. and all above
5000, 600, 900 would pay a tax of 6 per
cent.
All note issues of the association
must be covered to the extent of at
least one-third by gold OF other lawful
money and the remainder by United
States bonds or bankable commercial
paper. ~
The capital stock of the association
would be $500, OoO, 900 and the asso-
citation and it's branches exempt from
taxation except upon real estate.
TOWN WIPED OUT BY FIRE
Wireless Message Tells Of Destrue.
tion Of M%arshfield, Ore.