Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-11-13
ECONOMIC SOCIETY IN SESSION
Special Attention to Objections by
Folk and Hubert.
RESPONSIBILITY UPON BANKERS
Success Will Largely Depend on
Honest Management.
UNDUE INITIATION IS FEARED
InOrmsr Governor Joseph Folk of
Missouri suEEests National De
psrtment OF Finance, with
Fifteen Directors.

CHICAGO. Nov. i2.-Nelson w. Aldrieh
tchsirman Of the National Monetary COM
mission, defended his plan for national
currencvy reform last night and answered
numerous criticisms OF the plan offered,
at today's session of the Western Eco
nonic societS.
Chief among the criticisms of the plan
suggested by the bankers and political
economists had heen
| Danger of unrestrainod initiation Of
| currency; danger of control OF the Ma
tional Reserve association passing TO the
hands of banks, and need OF specified
Sold reserve.
| The objections of f, D. Hubert. a Chi
cago banker. and former Governor Jo-
seph w. Folk OF Missouri, received the
} chief attention OF the chairman OF the
commission.
into the hands of the bankers Of the
country MIR. Aldrich placed most of the
responsibility OF seeing that no undue in-
flation might result from the passage of
, the bill.
Depends ON Honest management.
/ In the last analysis" he said. THE
character OF tho National Reserve asso-
citation Is the surest Limitation on the
expansion. You can't make legislation
/ which viii give managers OF institutions
honesty and fidelity. Every bank in the
United states depends upon the honesty
and wisdom OF its managers. Have you
SO little confidence I'm your associates
os to think they are going to permit
the country 10 be ruined by imitation?
The purpose of the plan IS to permit
some expansion. You can't cure condi-
tlon like that of 1907 without expansion
and extension of note issues. The limi-
tations put on rediscounting by the plan.
however, win serve TO prevent too much
expansion"
Answering tho claim that the govern
lncnt should have greater control of the
association, former Senator Aldrich said:
The bankers are the sole stockholders.
They are the owners Its functions are 10
.prnsaryoiiateir sygp 5f0Ttnnes ena ire res
sources OF their constituent banks. DO
you think, the men appointed by The
president could manage the great finan-
cfaI institutions of the county better than
the men who have spent their lives try
3ng to find out how banks SHOULD be
managed?
Expects Opposition.
+ do not. Times have required H. each
generation when some one wanted TO
put the iesulng of currency into the
hands Of tho government. We have had
greenback crazes. expect the oppoeitiou
OF men who want to give the power 10
issne notes to the government. fought
that fight years ago. II we are TO have
an issGs whether the government shall
issue all money and control the banklnS
machinery, let 1t come
-
In an address mqualifedly indorsed the
currency reform plan.
The following are epitoues OF crlti-
cians and suggestions offered to the Aid
rich plan by students OF economies and
practical bankers at the meeting OF the
Economic society;
.. NJ. 6prague, professor OF economies.
Harvard university:
''The most seriously disturbing feature
of all clties, has been the disoontinuanoo
OF payments between different sections
of tho country and the consequent dislo-
cation of the demostio exchanges. II we
can make certain OF tho continuation of
payments Of the city banks, this diffl-
Guilty will almost entirely disappear. ana
this can DO accomplished by the reserve
essoolstiOn,"
Wants Popular Control.
William a. Scott professor OF political
economy, University OF Wisconsin,
Popular control OF an institution so
vitally associated with the economic well
fare OF every citizen as central reserve
association would be is essential The
.Aldrieh plan places the control Of the
banks IN the hands OF the banks which
compose the local associations. II any
interest gets control, thereby it will be