The Leon reporter. (Leon, Iowa) 1887-1930, 1911-12-14
OUR WASHINGTON LETTER.

TO pc taken seriously NY Cue COuAIAJ
The Aldrich monetary commission
is holding daily sessions. Banks
| favorable to the scheme are bring
inc what pressure they can on
the members of both parties to get
them to view the Aldrich idea favor
ably. A million dollar fund is being
raised to finance a campaign in sup
port of the proposition.
Ex-senator Aldrich processes to
believe that he will be able to rush
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
ljoker-laden tariff bills for the trusts
in the past in the very teeth of the
deposition 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 a statesman. But he may be dis
appointed, as he is reasoning without
the progressive democrats and re-
publicans in both houses who stand
ready to begin a campaign of educa-
ton of the people to the tremendous
menace of his 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 campaign. 1t virtually per-
mits the central reserve association
to discount railroad and other cor
poration securities.
This is one of the concealed jok-
ers in the Aldrich plan. TO mlslead
the public, Mr.. Aldrich proposes that
the central association, as he calls it,
shall discount for banks any COM
mercial paper properly endorsed by
the district association to which the
bank belongs. In his public discus
sions he mentions no other form OF
discounts than commercial paper.
But there is in reality this added
provision: That the central asso-
citation shall discount the direct OBJ
legation of any bank, upon the GER
tificate from the district association
that the bank seeking this discount
has deposited with the association Sc
curities satisfactory to the associa-
ton, which will be denominated by
Wall street banks.
The profits the banks can make on
straight commercial paper, which
has a value of it's own, are restricted
to legitimate profits. But corpora
ton securities have chiefly manu-
featured value, and the Aldrich plan
would enable banks loaded down
with undigested securities, put out
from Wall street, to draw good
money from the Central Association
by depositng thes securities with
the local association. This is dis
tinctly an Aldrichesque proposition.
.. The Presidents Message.
The only definite thing in Presi-
dent Taft's message to congress is
his attempt to prove that the farc'cal
tobacco trust decree is a most CA
cellent enforcement of the Sherman
antitrust law. He would make the
people believe the tobacco trust de-
cision practically solves the problem.
He complacently assumes that this
decision is certainly at some definite
period to restore competition, and
soften the evils of illegal monopoly
if it does not indeed completely Grad
icate them.
Once again, therefore, the Presi-
dent is found advocating in a mes
sage to congress a cause that is not
popular with the people, for the mer-
est tyro in the study of trusts recog-
nizes the tobacco trust dissolution
as victory for that monopoly. That
even Wall street so considers it
is evidenced by the fact that the
securities of the trust are higher al
ter the "dissolution' than before.
"The punishment inflicted upon
the American Tobacco company for
being in existence in violation of the
law" declares Chairman Stanley, of
the steel investigating committee, .
is worth hundreds of millions of dol
lars to that concern. There is not a
trust in the United States or the
world that would not give millions
to be "dissolved as it has been dis
solved"
And the president devotes his Of
fetal message to congress to an at
tempt to make it appear that this
tobacco trust decision is great vic
tory for the Independent tobacco
men and the people!
Economy.
Estimates of the treasury depart
ment for running the government
during the next fiscal year, which
have just been submitted to congress
contemplate saving of $21 1884,
921.43, as compared with the amount
appropriated for the fiscal year
lSII-lY12.
This in contrast to past republic
can performances. Mark, for in
stance, the following comparative
figures, which best tells the story of
republican extravagance:
Annual Appropriations.
1890 .............$ 340,OO0,O00
Per Capita of Running the Govern
ment.
1SVV o'oo