Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-05-06
ALDR|CH EXPLAINS
PLAN To REFORM
NATIONS BANKS
Reserve Association Safe from
Wall Street Control and
from Politics.
STATE BANKS WOULD
BE INCLUDED in SCHEME
President to Name Governor for
Bank from List Given
by Directors.

NEW YORK, May 6.-Nelson w. AL
drich, chairman of the United States
Monetary Commission, sought last
night at the first annual dinner OF the
trust company section of the Amer
lean Bankers Association at the Wal
dorf-Astoria to meet every important
objection SO far made to the organiza-
ton of a national reserve association,
which Is the feature of the commits
sion's monetary plan.
Ex-senator Aldrich strongly denied
that in a short time Wall Street would
be the master of the reserve associa-
ton just as completely as New York
dominates the credit system of the
country today and that If it escaped
the Scylla of Wall Street 1t would
surely come to grief on the Charybdis
of machine politics. sa
Chairman Aldrich denied with great
emphasis that either event could pos
sibly come to pass. He was wholly un-
able to see, he said, how the fifty-three
members of the New York Clearing
House or the eighty banks and trust
companies in this city could possibly
control the votes of from 10000 to 1000
banks loo ted in all parts of the United
States.
Beyond Political Control.
Ex-senator Aldrich said:
81 have deemed it essential for the
success of the plan suggested that the
control of all of the functions of the
Reserve Association named. important
as they are from every point of view
to the welfare of all our people, should
be placed beyond the reach of political
influence or any local domination. l be-
lieve this has been successfully accom-
plished by the form and manner of or
ganization suggested. A majority Of all
the banks located in the territory COW
cred by a local association, without
reference to their capital or resources,
elect a majority of the directors of each
LEGAL association; a majority of all the
local associations, without reference to
the combined capital or of it's
members, can name a majority, includ-
ing the additional members not bank
officers. of the directors of each district
association and of the branch of the
central association. A majority of the
district associations, without reference
to their relative Importance, can name
in the manner 1 ave stated a majority
of the directors of the Reserve Associa-
ton. A majority of the directors of the
Reserve Association elect the executive
committee and furnish a list to the
President of the United States, from
which he must select a governor and
two deputy governors of the Reserve
Association.
81 have understood fully that the
principal objections that have been
urged against any central organization
or association of banks have arisen
from the fear that it might be subject
10 political influence or be brought
unde the domination of New York, or
Wall Street, to use a common express
sion. With individual banks, without
reference to size. adopted as the voting
unit, 1t would seem clear that it would
be a physical impossibility that the
flfty-three members of the New York
Clearing House or that the eighty
banks n trust companies in New
York could control the votes of 10000 or
10000 banks located in all sections of
the country
objection has been made in some