The Birmingham age-herald., 1911-06-23
ALDRICH MONETARY
 PLAN IS INDORSED
CONTINUED FROM PAGE n

PLAN IS INDORSED
 tCoNTINUED FROM PAGE n
 
 representative republican basis. It pro- vides that the national reserve asso- alton shall have Is different divisions or branches distributed geographically to include the entire country; that any 10 national banks within one of the 15 geograp phical divisions having an az gregate capital of s5,000,000 may estab- fish local association; that this as- sociation shall be governed by dl- rectors to be selected-three- -ffths of them by a vote of the representatives 1 of the banks one from each band, and casting only one vote, and tWo-htths of them by representatives of the same banks each representatives to cast 1 votes proportionate to the capital or the bank he represents. The branch or the association in each one of the To eeoeraphfeaI districts is to be con- trolIed by board of directors to con- sist of three groups of directors one group equal to the number of association Tn 1 the district to be elected by the d. reetors of the local association, each l director having one vote, second, a l group of directors equal to two-thirds l of the number of local associa tions, who l shall be elected by representatives of the banks with voting power propor- donate to their capital and the third group which shall be equal in number to one-third of local associations or the district. shall represent the indus trial comGlercial and agricultural and other interests of the district and shall be elected by the votes of the first two groups. each director having one vote. Then there shall be a manager who shall be ex-officio a member of the board of directors and shall be chair man of the board
 Forty-nine Directors
 'The national reserve association shall consist of 45 directors. six of whom are to be ex-offieio members, namely. the gov ernor of the reserve association, who shall be chairman of the board; two depu- ty governors, the Secretary of the Treas ury. the Secretary of Commerce and La bor and the Comptroller of the currency. The second group shall consist of 15 d. reetors to be elected by the board of directors of each branch of the reserve association each member of the branch board having one vote. The third group shall consist of F directors to he elected by voting representatives of the banks embraced in the district, each representa- tive casting votes proportioned to the
 
 thus constituted are to select F additional | members, who shall fairly represent the 1 industrial. commercial agricultural and 1 other interests of the country and who l shall not be officers of banks The gov ernor and the two deputy governors shall 1 be selected by the President ot the united l States from a list submitted by the board l of directors and each branch is to have | manager and a deputy manager appointed by the governor of the reserve associa- ton with the approval of the executive committee
 "A careful examination of the consti- tuition of the controlling board Of this na- tonal reserve association, shows, first, that every bank both as a unit and also in proportion to its capital, has voice in the selection of the governing board of directors of the national reserve associa- tion as it has a similar voice in the board of directors of the branch of the na- tional reserve association in one Of the 15 geogra phical divisions.
 More than this, the directors thus chosen are bound to introduce into the boar a considerable number or persons who do not represent banking interests. The government, through the President selects the governor and the deputy gover- nor and managers, who are executive or fieers and are ex-officio members of the board. In this way the banks ana the govern.1ent exercise a divided control which cannot under the system be trans ferred to the ambitious money interests of a particular part of the country. The groups of directors is quite as certain to represent the whole business intersts of the country as the House of Represen- tatiyes Is to represent the political views of the country. It is a carefully and well drawn plan to avoid the concentration of controlling influence either in W all street or in Washington. Some critics whose comments on the plan have seen have sail 'Ah. there i9 still in this plan central bank; you call it na- tional reserve association, but it is never theless a central bank and opens there to all the objections that crowd upon one in the consideration of the evils Of a central bank.
 Jackson Battle
 Preferences are made to the great battle which Andrew Jackson carried l on against the bank of the United 1 States and it's branches and party feel l ing is sought to be aroused by a sug- 1 gestion that such an institution is con l trary to the principles of one of the great parties. The fact is that this re- l serve association lacks all the elements which made Jackson oppose the con tinuance of the United States bank. It is true that the national reserve as sociation is q central bank in certain sense. Under it's plan 1t is empowered to do kind of banking business; 1t is to have the benefit of all govern ment deposits without interest; 1t may receive deposit from all national banks ii may re-discount, under certain con dftions, prime and commercial paper of such banks; it may issue it's notes to banks in payment of their credit bal | ances. It may charge commission and q scount as other banks, but 1t must confine it's dealings to banks and not extend to individuals except in its for eigu exchange business where 1t is permitted to sell and buy foreign ex- change and gold with view to the assistance of it's general fiscal opera l tions.
 l By it's powers it is enabled to earn an income and it has shares of stock and these shares of stock are dstrib- uted to national banks throug ghout the country. Every rational bark is to hold | 10 per cent of it's capital in the stock of the national reserve association and no more. The stock is not transferr- able. It is relieved from taXationa ex- copt the specific taxation imposed by the federal statutes, and the taxa ton by the states upon it's real es- tate. If it earns per cent. the 4 per cent goes to the stockholders: if it earns more than 1 per cent then the next per cent earned is divided between the surplus of the association and a dividend payment to the government of the United States and if more than , per cent is earned the entire excess is to be turned into tho treasury of the United States. Thus it will be seen that this national reserve association ic in .taIr 1a .f ,JI