New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-10-17
'ALDR|CH PLAN FAVORED
Monetary Commission Begins
Two Days Session Here.
sELIGMAN STRONG ADVOCATE
Declares New York Might Be
World s Financial Centre IN
der Effective System.

The National Monetary Commission
began a two days session az the Hotel
Plaza yesterday to hear suggestions from
financial experts in regard 10 the national
reserve plan presented in the preliminary
report OF its chairman. Senator Aldrich
OF Rhode Island. In the absence of Sen
ator Aldrich Congressman Nreeland. OF
this state. presided at the opening session
Other members OF the commission present
we're Senators Burrows. OF Michigan. and
Penrose. Of Pennsylvania. and Representa-
lives Weeks. Of Massachusetts: Bonynge
Of colorado and Prince. OF Illinois Sena-
tor Aldrich Is expected % attend the hear
ms today
While the commission is not bound by
the personal report OF Senator Aldrch it
was said that the sentiment Of the other
members favored his plan. which provides
for a national reserve association or cen
ira organization. with fifteen branches
throughout the country. Edwin r. A. Sci
lyman. McVickar professor u political
economy at Columbia University. appeared
before the commission yesterday and spoke
In favor OF the Aldrich plan.
Opposition 10 the Aldrich plan as a
scheme Of Capitalization was. I'm his opin-
ion. a false cry. he said What il really
meant he said. was a decentralization Of
banking facilities and a Capitalization Of
the banking reserve two important ele-
merts which were lacking in the present
inefficient banking system.
The plan as suggested by Senator AID
rel" said Professor SeHgrnan. lis held
m favor by an overwhelming majority Of
eorrorates the principles long advanced by
tho thinkers Of the entire world. The
greater part ~ bank credit to-day takes
the form Of deposits. our present system
was designed 70 secure safety 20 the note
holder and does not secure safety TO the
depositor
This problem Of safety 20 the depositor
Is one Of the most important 10 be consid-
cred I'm building I'D a new system While
mo roto-holder NAV eventually get what is
Que him. n he can wait long enough, the
average business nan cannot get help in
line Of stress under the system now ex-
lstiDc. The business man i'm the small com
munitv wants 20 get credit around the cor
nor. So 10 speak, without going outside OF
his own community
Professor SeHg1nan Hkened the Aldrich
plan 10 the plan of our government. where
things we're centralized In Washington in
So far as the laws were voted upon and
passed in congress. but the votes were
those m the representatives Of various
constituencies throughout the country
The experience Of the last fifty years
has made ms all feel" he said. that We
are as dependent on one part OF the coun-
try as on another. az far as the general
solvercv rs concerned. We must have a
banking system which does not favor a
few big centres. The small man in the
OUTLYING districts Is the one who really
suffers The man Of large finance can ar
range his affairs conveniently under most
any system He is not so much concerned
Ir a change
Professor SeHgman said there was no
reason why New York should not become
tho financial centre Of the world. but that
10 could not under the present banking
system he pointed out that this country
was prevented under the present system
from participating in the worlds banking
business In that respect II was unfair
~ the banking business itself i'm this couu-
r-, Hundreds Of millions Of dollars were
raid ont i'm foreign exchange, which was
a direct loss 20 the American business
man. because London was the financial
centre and the New York banks were not
known IN foreign countries.
Or would make final point. he said,
that n is essential 10 have banking
system IN this country which viii permit