Perth Amboy evening news., 1911-06-23
TAFT TALKS ON
MONEY REFORM
New York State Bankers
Hear the President.

New York, June 23.-President Taft
TALKED currency reform and reel
procity to two groups of banqueters
at Manhattan Beach. Then he motor
ed through Coney island to the Sea
Gate landing of the Atlantic Yacht
club, where he boarded the Mayflower,
On which he left for Fall River, whence
he will go to Providence for a speech
on reciprocity.
AT the eighteenth annual banquet of
the New York State Bankers associa-
ton 1900 members of that association
greeted him there and cheered him
cordially when he rose to make his
address.
The president\in his address confn-
ed himself to a discussion Of the Ma
tional Reserve association plan propos-
ed by the Aldrich monetary commits
sion.
The president began by pointing out
the weaknesses of u present cur
rency system when al emergency is
to be faced. 1t was to remedy this,
he said, that the commission headed
by ex-senator Aldrich had been nam
ed. He then spoke CT the makeup Of
that body, saying that it was a non
partisan commission, and expressed
the hope that the people of the coun-
try would treat these recommenda-
lions as coming from a nonpartisan
body.
After describing the makeup and
methods of work of the proposed reso-
luton the president said:
Senator Aldrieh, the chairman of
the commission, has correctly stated
that a central bank In this city would
nomic reasons. The people of the
country would be unwilling to trust to
any private banking organization such
enormous control as must be vested In
an agency which is to decide as to the
concentration Of cash reserves and
which is to decide upon and provide
for the necessary increase and de
crease of bank note currency as well
as to regulate the liquidation Of the
commercial paper by fixing a uniform
discount throughout the country. He
has said that such an agency must be
made by such constituents that 1t shall
be impossible for money kings In Wall
street to control 1t on the one hand or
for the political influences by govern
mental appointment to direct Its oper-
atoms from Washington, and In order
to evolve an agency free from the con
troll of either of these influences he
proposes and devises In his tentative
suggestions to the commission, which
seems to have been received with IA
vor, what he calls a National Reserve
association.
ut Is true that the National Reserve
association is a central bank In a GER
tain sense. Under Its plan 1t will DO
and Is empowered to do a kind OF
banking business, 1t is to have the
benefit of all government deposits
without interest, it may receive de-
pos1ts from all national banks, 1t may
rediscount under certain conditions
prime and commercial paper of such
banks, and it may issue it's notes to
banks in payment of their credit bal
dQCGS. IL may Ia sc NOhihliSoiOh anu
discount as other banks, but 1t must
conine It's dealings to banks and not
extend them to individuals except In
Its foreign exchange business, where
it is permitted to sell and buy foreign
exchange and gold with a view to the
assistance Of It's general fiscal opera
tons.
By its powers 1t is enabled to earn
an income, and it has shares Of stock,
and these shares of stock are distrib-
uted to national banks throughout the
country. Every national bank is to
hold 20 per cent of its capital in the
stock of the National Reserve associa
ton and no more. The stock is non-
transferable.
Thus it will be seen this National
Reserve association is in a sense a
bank made up of all the banks of the
country and controlled by no one and
no one set Of banks. 1t is, as 1 have
already said, a republican form of gov
eminent and under the control Of the
banking representatives from fifteen
geographical divisions of the country"
$4,000 In an Hour.
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