Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-11-12
FOR ALDR|CH'S PLAN
Secretary Macveagh Urges
Need of Banking Reform.
POINTS OUT ONE DEFECT
Would Have Provision Made Against
Stock Ownership.
MEANT TO BENEFIT PUBLIC
Only Public Support, He Says, VIII
Secure Its Enactment by Con-
gress Into Law.
POINTS OUT ONE DEFECT
[EANT TO BENEFIT PUBLIC

| CHICAGO, H., November 11.-tranklin
i MacVeagh, Secretary of the Treasury,
| in an address here tonight before the
Western Economic Society, gave his in
dorsement to the plan of currency reform
| which has been suggested to the ma
| tional monetary commission by former
Senator Nelson w AIdrich. Mr.. Mac
Veagh declared, however, that he be-
| leved the plan would be received with
prejudice in Congress unless it contained
some provision to prevent banks from
controlling stocks in others.
II believe the holding of shares in an
| other bank by bank which is a member
of the National Reserve Association
| should be prohibited he said. This
should be made to apply not only to the
corporate action of the bank, but to ac-
ton by any substitute method accom-
plishing the same purpose. / feel sure
that American conditions are perma-
nentiy opposed to any sembance Of
branch banking and to any concentration
of bank ownership or control.
Would Prejudice Congress.
Il feel that the proposed new monetary
system will be prejudiced in Congress
and in the public mind unless provision
is made against this ownership of bank
stock. In my opinion this should be
dealt with in the monetary commissions
report. Otherwise l am sure Congress
will deal with it on its own initiative
Secretary MacVeagh observed that
the work of preparing tentative plan
had been marked by an absence of
quibbling and unanimity of purpose.
10 haliavad
be impressed with the public demand
for immediate action.
If we SO to our representatives
without an uncompromsing belief in
the urgency of the legislation. we sim
ply invite further delay and post
ponement. This winters session will
have other important things before it
and Congress will be seriously engaged.
barring. OF course, the paralyzing eff
feet of the shadow OF the coming cleo
ton. so that monetary Legislation may
not have the right of way" he said.
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 We?
Why shouldn't Congress give us relief?
AS long we have the present bank
| ing and currency system We shall have
| panics, and no longer. Does not this
alone create a state of emergency?
Why should it take another wasteful
and degrading panic to impress Con-
gresS?
Insurance Against Panics.
| why cannot 19o7-from which the
people are still observation-disclosures.
There are many other things of prime
to be secured through cur
rency reform, but If nothing more than
from panics were secured
there would be an abundance OF I'M
lperative reasons for immediate action
| by Congress.
THE National Reserve Association is
proposed for the benefit of the people
, This is a peoples and not government
| measure And it is as peoples move
| ment that it can secure legislation or
| the right sort at once.
This plan as it stands. or Will stand
when presented to Congress. may be
| called the deliberate. seasoned and eX-
perienced work, not only of the monetary
| commission. but of the nation itself
Many contributed to it. studying all the
appropriate knowledge of the world even
before the chairman organized his cele-
brated tentative proposal. And then Mr.
Aldrich. with remarkable practical Wis
dom, placed his tentative plan before
| and amendment.
Wonderfully Good Plan.
"As the plan stands today, it is a Won
derfully good one. 1t provides almost con-
clusively all the banking facilities that
| the business of the country needs and
| lacks, and it protects Itself nearly or
quite conclusiveiy from ali the dangers
| that every one has SO far apprehended
Some think the Reserve Association a
| cent? alizing proposition, and that 1t is
| proposed to organize an institution fox
| the Capitalization of the banking power
hot iS nf
purpose nor the effect Is centra liZation
| The purpose and effect is simply organi-
cation for all sorts of times and against
| all sorts OF emergencies and exigencies.
Mr. MacVeagh said that despite his
| cordial opinion of the Aldrich plan as
| il now stands there were some i'm
portant features to be considered. one
| of those, as he explained. was a pro
vision to prevent control by stock
| holding. Another he said was that
| national banks should be gwen the
same advantages to conduct a trust
| company business as is enjoyed by
| concerns under state charter. He de-
| clared that unless the national banks
| had the same money making advan-
tages as state banks enjoy they could
not hope to survive.
Secretary MacVeagh closed his ad-
| dress with a plea that the monetary
| question be kept entirely out OF pcli-
| ties. 1t is purely a business Iues-
| ton. he said. and has no place in po
litical economics. He declared it would
| be unwise politics for, any political
party or faction TO embarrass il by
| making a partisan issue
Mr.. Aldrich Listens to Discussion.
! Former Senator Aldrich attended a
meeting of the society today and heard
/ his plan for a currency reform various
| ~ approved. praised and criticised. Mr..
Aldrich took no part in the discus-
| sion.
| Fear of unlimited imitation and over
extension of credit should the proposed
plan become a law was suggested IN an
address by T. ID. Hulburt, vice presi
dent of the Merchants Loan and Trust
Company of Chicago.
| Prof. h. W. kemmerer of Cornell Uni
| versity declared the plan was the best
proposed yet" although criticisng il on
the ground that II is too much under the
| control of the banking fraternity.
The method of choosing directors and
| the preponderance of banking representa-
! ton in the Aldrich plan We're criticised
| by Prof. kemmerer. He expressed the
| opinion that a provision for ntrustins
| to the President of the United States
| the appointment of all or a substantial
part of the twelve non-banKing directors
would insure better qualified direc-