The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1911-11-14
Mr.. Aldrich Defends
His Money Plan
SAYS 1T WILL PERMIT
NECESSARY EXPANSION
Chairman OF National Monetary Com.
mission Answers Criticisms 81
Currency System For Which PC
Is Sponsor.

Chicago, Nov. 1l.--Nelson w. Aid
rich, chairman of the National None
tary commission defended his plan oi
a national currency reform tonight
and answered numerous criticisms OF
the plan offered at today's session
of the Western Economic society
Chief among the criticisms sug
gested by bankers and political
economists had been: Danger OF un.
restrained initiation of credit; danger
of control of the National Reserve
association passing to the hands of
banks and need of specified gold re-.
serve
The objections of e. ID. Hurlbut.
a Chicago banker, and former Cover
nor James w Folk of Missouri, claim
ed the chief attention of the chair
man of the committee. In the hands
of the bankers Mr. Aldrich placed
most of the responsibility of seeing
that no undue initiation might result
from the passage of the bill
"In the last analysis" he said. the
character of the National Reserve as
ISOLATION is the surest limitations on
the expansion of credit. You cant
pass legislation which will give man.
ayers of institutions honesty and fid-
city. Every bank in the United States
depends upon the honesty and wisdom
of it's managers. Have you so little
confidence in your associates as to
think they are going to permit the
country to be ruined by initiation?
THE purpose of the plan was to
permit some expansion. You can't cure
condition like that of 1907 without
expansion and extension of note issues
| The limitations put on re-discounting
by this plan, however will serve to
prevent dangerous expansion.
Answering the claim that the gov
eminent should have greater control
of the association, Mr.. Aldrich said;
The bankers are the sole stockhold
ers. They are the owners. The asso
cations functions are to preserve
of their constituent banks. Do you
think the men appointed by the Pres.
ident could manage the great financial
institutions Of the country better than
the men who have spent their lives
trying to find out how banks should
be managed?
Il do not. Times have REQUIRED in
each generation when some one want
ed to put the issuing of currency in
| to the hands of the government. We
have had greenback crazes. | expect
the opposition of men who want to
give the power to issue notes to the
government. fought that fight years
ago. If we are to have an issue whe'
Their the government shall issue all
money and control the banking mach.
inery, let it come"
Secretary of the Treasury McVeagh
|
in an address,, unqualifiedly Endorsed
the currency reform plan. He declared
however, that he believed the plan
would be received with prejudice in
Congress unless 1t contained some pro
vision to prevent banks from control
ling stocks in others.
Objections Raised.
The following are epitomes of crit
cisms and suggestions offered the Aid
rich plan by students of economics
and practical bankers at the meeting
of the Economic society:
o. NJ Sprague, professor of econo
mics at Harvard university: The mos
seriously disturbing feature in all cit
les has been the discontinuance o
payments between different sections
OF the country and the consequent dis
location OF the domestic exchanges. /
we can make certain Of the continue
ton of the continuation OF payment
OF the city banks this diff
> Guilty will almost entirely disappea
and this can be accomplished by tn,
Reserve Association"
William s. Scott, professor OF poll
teal economy in the University o
Wisconsin: The Aldrich plan place
the control of the banks in the hand
OF the banks which compose the loca
association. II any interests get cor
troll. therefore, 1t will be by influenC
4 ing sufficient number OF banks 4
J. these local associations to turn tn
a balance OF power in their favor. |
!. the present form the Aldrich' pla
e renders criticism possible"
r. Former Governor Joseph w. Fol
r. OF Missouri; Il would suggest n
y, tional department Of finance wit
~ fifteen directors aQDOintpd by NJ