Saint Mary's beacon. [volume] (Leonard Town, Md.) 1867-1983, 1911-12-14
WASHINGTON LETTER.
Washington, d. c.. Dec. Ii, 1911
BY CLYDE II. TAvKxSKR.

BIZ CLYDE II. TAvxSSKR.
The Aldrieh currency system Is
near enough 30 be taken seriously
by ths country. The Aldrich None
tary commission is holding daily
sessions. Banks favorable 20 the
scheme are bringing what pressure
they can on the members OF both
parties to get them to view the Aid
rich idea favorably. A million dol
lar fund is being raised 70 finance .
campaign in support OF the PROPOSE
ton.
Ex-senator Aldrich processes 70
believe that be will be able 70 rush
q bill inaugurating the Central Re-
serve association" through at this
session Of Congress. The fact 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.
Apparently he thinks he can do the
same thing with the currency plan,
which he feels would be fitting
browning glory to his achievements
as q statesman. But he may be
disappointed, as be is reckoning
without the progressive Democrats
and Republicans in both Houses
who stand ready to begin q cam
paign OF education OF the people TO
the tremendous menaceof bis scheme,
at the first opportunity that offers
ANOTHER ALDRIcH JOKER.
One feature OF the Aldrich cur
rency plan which has been largely
overlooked, is so characteristic OF
the author that it may discredit the
whole program. 1t virtually per-
mits the central reserve association
to discount railr Dad and other cor
poratior securities.
This is one of the concealed jok-
ers in the Aldrich plan. To mis-
lead the pubic, Mr.. Aldrich pro-
poses that the central association,
as he calls it. shall discount for
banks any commercial paper pro-
perry endorsed by the district asso-
citation to which the bank belongs.
In his public discussions he meu-
tions no other form OF discounts
than commercial paper. But there
is in reality this added provision:
That the central association shall
discount the direct obligation OF any
bank, upon a certificate from the
district association that the bank
seeking this discount has deposited
with the association securities sat-
isfactory to the association, which
will be dominated by Wall street
banks.
The profits the banks can make
on straight commercial paper, which
has value OF lis own, are restrict
ed TO legitimate profits. But cor
poration securities have chiefly q
manufactured value, and the Aid
rich plan would enable banks load
ed down with undigested securities.
put out from Wall street, TO draw
good money from the Central asso-
citation by depositing these securi-
ties with the local association. This
is distinctly an Aldrichesque pro-
position.
The President MESSAGE.
The only definite thing in Presi-
dent Taft's message to Congress is
his attempt to prove that the farci-
cal tobacco trust decree is q most
excellent enforcement OF the Sher-
man anti trust 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 il it does NOT in
de- d completely eradicate them.
Once again. therefore. the Presi-
dent is found advocating in q mes
sage 10 Congress a cause that is not
popular with the people, for the
merest tyrO in the study of trusts