The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-01-17
4 GREAT CENTRAL
BANK IS PLANNED
Senator Aldrich Gives Out
Details of His
Scheme
WILL HAVE CAPITAL OF
3 HUNDRED MILLION
Stock holders are to be Nat
tlonal Banks Throughout
Country-Plan of
Operation

WASHINGTON, p. c.. Jan. 17.-An
organization of national lks-in ef-
feet, a central bank--to called the
reserve association of America"
governed by forty-five directors.
which will gradually absorb the privi-
leges of issuing currency until 1t be-
comes the exclusive agency for that
purpose, and having other large pow
ers, is the plan of currency reform
devised by Senator Nelson w Al
drieh, chairman of the National Mon
etary Commission, as made public To-
day for the first time.
Aldrich having peen forced to go
South for his health. was not present
at the meeting of the National None
tary Commission, at which his plan
was announced. Representative Vree-
land Republican,, OF New York.
presided.
Features OF the Aldrich plan fol-
low:
The authorized capital of the re-
serve association. and the head office
in Washington, u. &.
The country shall be divided into
fifteen districts and a branch OF the
reserve association shall be in each
district.
The reserve association and it's
branches shall be exempt from State
and local taxation. except In respect
to taxes upon real estate owned by IL.
A national bank having a minimum
capital OF at least $zs.000 may sub
scribe TO an amount of stock to the
reserve association equal to 20 per
cent. of it's stock and not less. Fifty
per cent. OF the subscriptions to the
stock OF the association shalt be paid
In cash; the balance Will remain a
/ liability OF the stockholders, subject
to call. Shares of the capital stock
of the association Will not be trans
ferable.
The earnings OF the reserve associa-
ton shall be distributed as follows:
Plan Of Division OF Profits
After the payment OF all expenses
and taxes the stockholders shall re.
ceive per cent Further earnings
shall be divided one-half to the sur
plus fund until that surplus shall
amount to 20 per cent. OF the paid In
capital. one-fourth to the government
OF the United States and one-fourth
to the stockholders. but the dividends
of the latter shall never exceed s
per cent When they get per cent.
one-half Of the surplus will go TO the
government and one-half 10 the asso-
citation. When the surplus fund OF
the association reaches 20 per cent
OF the paid In capital. all excess earn
inEs shall go TO the government
Subscribing banks shall be formed
into local associations. each compos-
ed OF not less than ten banks, with Is
combined capital and surplus OF s5,-
100000. All the local associations
shall be grouped into fifteen divisions
to be called districts In each dis
trtct shall be located a branch OF the
reserve association, governed by q
board of directors
Three important features are.
First. The government of the Unit
cd States and national banks owning
stock in the reserve association shall
be the sole depositors in the reserve
association.
Second. The government of the
United States shall deposit It's cash
balance with the reserve association
Third. The reserve association shall
pay no interest en- deposits.
In a letter to the commission AL
drich said he did not expect the I'm
mediate approval by the commission.
but said his plan would furnish to the
commercial organizations of the coun-
try. now considering the subject, n
basis for criticism and discussion.