The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-06-13
IN PRAISE
OF ALDR|CH PLAN
R. W. Bonynge, of Denver, Attend
ing Bankers Convention, Enthusi-
astic Over Central Reserve Assn.

Detroit is entertaining the tNen-
ty-fifth annual convention of the
Michigan Bankers association, and
bankers from all over the state are
arriving In the city TO attend the
sessions which commenced In The Ho-
tel Pontchartrain, Tuesday afternoon.
The morning was taken up with the
registration and the presentation OF
credentials, and after the visiting
bankers had been taken care OF they
made the rounds OF the Detroit n
nancial institutions which kept open
house for them.
A meeting OF the executive coducil
of the association was held at III
o'clock, Tuesday morning, tor the
discussion OF matters that are TO be
laid before the convention.
Several prominent bankers from
outside the state are In attendance
at the convention. Among these are
George NJ. Reynolds, president OF the
Continental and Commercial Nation
al bank, of Chicago, which by con-
solidation with the Hibernian Nation
al, has Just become the largest bank
In the country, and Robert w. 10
nynge, OF Denver, a member Of the
| National Monetary commission. Mr..
Reynolds and Mr.. Bonyoge will be
the principal speakers at The annual
banquet OF the association, which
will be held In the Pontchartrain,
Tuesday evening.
The topic for discussion will be
the Aldrich plan for a central re-
serve association, and both Mr Rey-
nolds and Mr.. Bonynge have made a
close study OF the plan and are very
enthusiastic about Ii.
The reserve association, said Mr..
Bonynge, is for the benefit OF the
merchant and the farmer In all parts
of the country. II will enable him
to go to his bank and get credit II
he is solvent no matter what the H.
nancial conditions are, because his
banker will know that he can rcdis-
count the farmers or the merchants
note with the reserve association. II
will automatically create a supply of
credit when II is needed and will safe
guard against over-expansion Of
credit when that is necessary.
1T Is not q step toward centraliza-
ton of banking power, but, rather,
a step toward decentralization. be-
cause the smallest bank in the coun-
try, II IL Is a member of the reserve
association, will be able TO use its
facilities as readily as the largest
bank. II is not a radical, revolution
airy STEP but an evolutionary step,
growing out Of the necessities OF han
ding the ever-increasing business OF
the country"
Mr.. Reynolds spoke OF the posi-
bilities OF the plan in preventing
panics.
"As II is now" he said, leach bank
has to provide its own protection In
time Of panic, and, consequently, car
not perform the function that II
should perform in expanding credits.
Under the plan of the Monetary com
mission there will be a central agen-
cy upon which the banks can de
pend for the rediscounting Of their
notes, and this agency Is SO safe
not perform any but its proper func
ton. | believe that the result viii
be that the banking business will not
be conferred in New York, az II IS
under the present system and this
will prevent the accumulation of
funds In New York, for which no
use can be found except in speculs.
ton. II will make II possible to keep
a larger share of the wealth of the
country In the west, where II is pro-
duced, and where IL can be put into |
further production. The rate of re-
discount viii be the same all over the
country. Texas can get the same rate
as Massachusetts.
Another prominent outside banker,
In attendance at the convention Is
John G. McCausland, vice-president OF
the First National bank, of Boston.
Mr.. McCausland said that business
conditions were not so encouraging
In the east as they seemed to be In
Detroit.
I'VE have not fully recovered from
the panic" said the Boston banker
"Of course, Detroit did not suffer
from the panic as we did In the east
and things seems to be very rros-
porous here"
The convention was called 10 or
der by President Emory W. Clark, at
$3.50 Tuesday afternoon and after an
Invocation by the Rev. John McCar-
roll, Mayor Thompson delivered the
address Of welcome. c. ]. Munroe,
Of Kalamazoo, who will probably be
elected president OF the organization
at the present convention, made the
response to the mayors remarks. Fol
lowing him reports were read by
President Clark, Treasurer Leon F.
Titus, Attorney Hal ii. Smith. and
the secretary. Mrs. II. M, Brown
Farran Zerbe, former president OF
the American Numismatic associa-
ton, will have his collection OF coins
on exhibition in the First National
bank, during the convention. This
collection Is said TO be the most COM