Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1911-12-15
SPECIAL CORRESPONDENCE
By CLYDE H. TAvENNER.
WASHINGTON, D. C.. December II. /,

Washington, D. c., December II. 1911.
The Aldrich currency system is near
enough to be taken seriously by the coun-
try. The Aldrich Monetary Commission is
holding daily sessions. Banks favorable
to the scheme are bringing what pressure
they can on the members of both parties
to get them to view the Aldrich idea fav-
orably. A million dollar fund is being
raised to finance campaign in support of
the proposition.
Ex-senator Aldrich processes to believe
that he will be able to rush bill inaugurating
the Central Reserve Association" through
at this session of Congress. The fact that
his idea is looked upon with disfavor and
alarm by the small bankers and the people
of the country does not discourage him.
He has passed joker-laden tariff bills for
the trusts in the past in the very teeth of
the opposition of the entire country APP
parently he thinks he can do the same
thing with the currency plan, which he
feels would be fitting browning glory to
his achievements as statesman. But he
may be disappointed, as he is reckoning
without the progressive Democrats and
Republicans in both Houses who stand
ready to begin a campaign of education of
the people to the tremendous menace of
his scheme at the first opportunity that
offers.
ANOTHER ALDRICH JOKER.
One feature of the Aldrich currency plan,
which has been largely overlooked. is so
characteristic of the author that it may
discredit the whole program. 1t virtually
permits the Central Reserve Association to
discount railroad and other corporation
securities.
This is one of the concealed jokers in the
Aldrich plan. To mislead the public, Mr..
Aldrch proposes that the Central Reserve
Association, as he calls it, shall discount for
banks any commercial paper properly in
dorsed by the district association to which
the bank belongs. In his public discussions
he mentions no other form of discounts
than commercial paper. But there is in
reality this added provision: That the Cen
trail Reserve Association shall discount the
direct obligation Of any bank upon certi-
ficate from the district association that the
bank seeking this discount has deposited
with the association securities satisfactory
to the association, which will be dominated
by Wall street banks.
The profits the banks can make on com
mercial paper, which has value of its
own. are restricted to legitimate profits.
But corporation securities have chiefly a
manufactured value, and the Aldrich plan
would enable banks loaded down with I'M
digested securities, put out from Wall
street, to draw good money from the Cen
trail Reserve Association by depositing
these securities with the local association.
This is distinctly an Aldrichesque PROPOSE
ton.
THE PRESIDENTS MESSAGE.
The only definite thing in President
Taft's message to Congress is his attempt
to prove that the farcical tobacco trust
decree is most excellent enforcement of
the Sherman antitrust law. He would
make the people believe that the tobacco
trust decision practically solves the trust
problem. He complacently assumes that
this decision is certain at some indefinite
period to restore competition and soften
the evils of Illegal monopoly, if ii does not
indeed completely eradicate them.
Once again, therefore, the President is
found advocating in message to Congress
cause that Is not popular with the peo-
pie, for the merest tyTO in the study of
trusts recognizes the tobacco trust dis
solution" as a victory for that monopoly.
| That even Wall street so considers il is
evidenced by the fact that the securities
of the tobacco trust are higher after the
dissolution" than before.
The punishment inflicted upon the
American Tobacco Company for being in
existence in violation of the law" declares
Chairman Stanley Of the steel investiga-
ting committee lis worth hundreds of mil
lions Of dollars to that concern. There is
not a trust in the United States or in the
world which would not give millions to be
dissolved as it has been dissolved"
And the President devotes his official
message to Congress to an attempt to make
II appear that this tobacco trust decision
is great victory for the independent
tobacco men and the people
ECONOMY.
Estimates of the Treasury Department
for running the government during the next
fiscal year, which have just been submitted
to Congress-, contemplate a saving Of $2l-,
283,92143, as compared with the amount
appropriated for the fiscal year 19ll-12.
This is in contrast with past Republican
performances. Mark. for instance. the fol-
lowing comparative figures which best tell
the story of Republican extravaganza
Annual appropriations