The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-07-11
WHAT ALDRIcH PLAN WOULD DO.

WHAT ALDRICH PLAN WOULD DO.
We have received pamphlet copy
of an address made by Mr.. Joseph r.
Talbcrt before the New York State
Bankers Association at Manhattan
Beach, June %, 1911. Mr.. Talbert
made fervent plea in this address in
favor of the Aldrich plan for the so.
called reform of the currency, setting
forth as its prime advantage "the cen.
tralizatlon Of the cash reserves of the
nation, which, in this central reserve
association, would become by far the
greatest and most effective stock of
| gold in the world. -
Now, that is precisely what the peo.
pie OF tins country fear in the Aldrich
plan, or in any other plan which would
yield that result The Capitalization of
The money power of the nation in any
one great mass, subject to the use and
control of but few men, and these I'm.
reachable In any way, would be a CON
slant peril, not only to the business,
industry and commerce of the country,
but 1t might even become direct men
ace to the liberties of the people, while
1T would be sure to be heavy drain
| on the vitality of the country. The
very thing which Mr.. Talbert considers
an advantage, the people generally and
lnstinctively consider peril to be
| avoided at all costs.
If one will stop for moment to con.
slider what the accumulation of rby
FAR the greatest and most effective stock
or gold In the world means, when CON
sldered In connection with the fact that
mere handful of men wonld he i'm con.
trol OF that immense stock Of gold, re-
| sponsIble to nobody for their acts. and
the power which that control would
give them, such consideration. it seems
TO us, would necessarily make every
one pause before endorsing such prop.
ositlon, The effect of this accumulation
and Its control and use by few per.
sons, which is made the prime reason
FOR Mr.. Talbert's endorsement of the
plan, has been as much disguised as pos
slble by Mr Aldrich, and by all who
follow him In the advocacy Of his plan,
we do not believe it possible for the
Congress of the United States ia Weld
favorable consideration, now or at any
future time, to plan which would re.
suit as Mr.. Talbert assures us that this
AldrIch currency plan would result. in
the gold accumulation as stated. and its
"a hIy oh ,r
men.
Mr.. Talbert, further commencing the
Aidrlch currency plan, saws that its
adoption would result in "the establish.
ment of discount system which will
utilize the merchant loans. and give 10
them immediate debt-paying power. II
VIII thus vltalize the current credits of
trade, which constitute the safest and
soundest basis for bank note issues.
This in connection with another point
In the same line, that the plan contem.
plates 1.-THE eventual abandonment of
our unelastlc and unscIentific bond.
secured circulating notes. discloses the
chief evils of the Aldrich plan. Plainly
stated, these two propositions, taken TO.
gether, mean the setting aside of gov
ernment bonds as security for National
banking notes, and substituting in place
Of them the current credits of trade
as the basis for bank circulation; which
would mean that, whenever a panic
arose, or An urgent demand for much
money, that money could not possibly
no for b,o IL.
its and discounts upon which the bank
notes could issue, would be dried at
their fount, and il would be impossible
to realize upon them. Government
bonds are always good, they are always
safe, they are always reliable: but let
banks cut loose from those and go TO
banking on "current credits of trade. -
then at pinch the whole banking sys.
tenn credits, notes. trade and all, would
fall in crash together in a disastrous
heap.
II is impossible TO consider, without
absolute distrust, almost panic. the ideas
thus suggested by Mr.. Talbert as de-
sirable i'll reforming our currency
issues. These issues are bad enough rs
they are now, but they would be in.
finitely worse with the system such as
is here proposed that would accumulate
and hold the largest and most effective
stock Of gold in the world, subject TO
the disposal of mere handful of men,
and supplementing thereto a banking
system which would allow of the issue
of notos or creditS which themselves
are sure to collapse at the very first
touch of a panic. No one has any credit
in a panic. no one is able TO pay his
debts. no bank is able to conduct
discount sYstcm IN a panic. The OK