The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1911-01-20
A[DR|CHS SCHEME
DISBELIEF IN CENTRAL BANK
MOST NOTABLE SURPRISE OF
REVISION PLAN.
REPORTS TO THE COMMISSION
Association of Federal Financial In.
stitutions of Country Would Form
Great Money
BulWark.
ALDRTCH'S PLAN.

ALOhISH = PLAN.
Local organizations of repre-
sentatives of banks.
Directors elected by these to y
. the board of "branch" associa-
tons, one branch for each of IS
financial districts, into which the =
United States would be divided. =
Directors, As in all, to the re-
serve association.
There also would be six ex-
officio members of this board, :
= namely, the secretary of the x
treasury, the secretary of COM
merce and labor, the comptroller =
of the currency, the governor and
two deputy governors of the as
ISOLATION.
The governor and deputy gov
* ernor of the association would be
appointed by the president of the 3
United States and be removable =
by him for cause.
The association would be the =
principal fiscal agent and de-
pository of the government, =
would fix from time to time the =
rate of exchange or discount, and .
eventually its notes would re-
place those of the national banks.
The system of mutual support 3
by which the associations men, .
bers would meet currency emer- =
gencies is detailed at length.
= = =
Washington, D. c. = Senator Mel
son w. Aldrich's long awaited plan
for the revision of the national bank
ing legislation" as he himself calls it,
was made public. 1t does not contem-
plate the establishment of central
bank.
1t is so far from what most people
have expected Mr.. Aldrich to propose
that to those who have not been in
his confidence it may come as notable
surprise.
Growing Effort of Life.
The plan was submitted to the ma
tional monetary commission at meet
ing called for the purpose but Senator
Aldrich was not present.
There was a suggestion almost of
the tragic in the fact that when the
hour came for the formal PRONUNCIATION
of what Senator Aldrich is known to
regard as the browning constructive eff
fort of his life he was hundreds of
miles away, speeding to the South on
a compulsory search for health.
The monetary commission received
Mr. Aldrich's suggestion without COM
ment as to it's merits. The document
was presented by the vice-chairman,
Representative Vreeland, and soon
afterward the commission adjourned to
meet at the call of the chairman.
Far from recommending the institu
ton of central bank, Mr. Aldrich
expressly disclaims belief in it.
"While we have found much that
is admirable in the government banks
of Europe none of them is applicable
to our needs" he says. Their good
results can, l believe, be reached with
out a central bank"
What Mr.. Aldrich does propose is
the establishment of the Reserve Ma
ISOLATION of America" federation OF
local associations formed by National
banks
Present System Called Faulty.
In a letter to Mr.. Vreeland, Senator
Aldrich tenders his plan as tentative
and subject to discussion and criticism
1T is obvious" says Senator Aid
rich, that one of the principal needs
is the unification of our banking insti
buttons. Under our faulty system re
serves are unavailable in time OF
trouble.
Association of Banks Sought.
eff we can so amend the national
banking act as to permit the formation
of an association of all the banks OF
the country, and if we provide scien
tific basis for the bank note circulation
we shall, believe, have met the two
main requirements.
Il believe the conclusions which
present herewith meet those conditions
and that the proposed organization will
not run any risk of creating financia
institution which can be controlled by
ambitious monetary interest or domi
mated by political influence"
Twin City Markets.