New-York tribune., 1911-11-22
BANKERS CHEER ALORICH
IN PLEA FOR REFORM
Former Senator, in Speech to
National Association. De-
fendS Currency Plan.
ATTACKS POLITICAL FAKERS'
Financiers Urge Adoption OF
Monetary Commissions Scheme
Wall Street Rules on Keg of
Dynamite, Says Warburg.

Now Orlcaus Nov. 2l.-Any wisc' and
legitimate amendments 10 the National
Monetary Commissions revised plan for
the reform Of the country monetary sys-
tenn will yet bo accepted by the commits
sion. So cx-Unted States Senator Nelson
". Aldrich. chairman of the commission
told delegates to the thirty-seventh annual
convention Of the American Bankers As
sociatiou here to-day
Mr. Aldrich was chcered for five minutes
when he rose TO speak. and the bankers
gavc him 2 rising vote OF thanks for his
active interest i'm the plan wien he
finished His address was the chief feature
Of the days proceedings Mr.. AIdrich
pleaded for the elimination OF politics I'm
! the consideration OF the subject, and eX-
pressed confidence in the early passage of
the remedial legislation, declaring that
"thc political takers who call the asso-
clation plan a central bank and Summon
the ghost Of Andrew Jackson have no i'm
portant part in the solution of tho prob
lens with which we are confronted"
Mr.. Aldrch Defends His Plan.
Mr.. Aldrich said, in part:
, il is proposed TO organize the banks OF
! the country into local associations and
/ these into district associations, cach with
distinctive functions and each with local
I self government, and 10 organize all dis
| trict associations into the National Re
serve Association. The organization pro-
/ posed is not bank but a ,Co-operatiVe
union OF all the banks OF the country for
definite purposes and with very limited
and clearly defined functions. 1t is in
elect an extension, or evolution, OF the
clearing house idea TO meet the needs and
requirements of the entire country. The
| plan of organization includes positive pro
| visions:
First-To maintain the integrity and in,
dependence of existing banks, state and
national. The new organization is outside
/ OF and superimposed upon the existing
system. The proposed association IS not
a bank and is not a competitor in any
sense for the business Of existing banks.
/ I'm its ownership and in its domestic bust
/ ness il is confined strictly 10 banks and
! the government.
/ Second-It provides clearly for an equal
/ ity Of privileges and advantages 20 all
/ banks. great or small. wherever located.
Third-lt provides equality IN rates of
/ discount or redscount to all banks, and
these rates are to be uniform throughout
! the country. This, il is believed will in
sure steadiness ana reasonabeness OF rates
every where.
! Fourth-Its organization is of a form and
/ character that will enectually prevent the
I control Of its operations by political inhu-
/ ences, local or national.
! Flfth-Every means has been taken.
! every safeguard adopted TO prevent beyond
question the possibility OF its control by
any corporation or combination of corpora
] tiOns. banks or otherwise. by any indiyid-
ual or combination of individuals i'm Wall
/ Street or elsewhere, for selfish or sinister
/ purposes.
/ Sixth-The dominating principle is CO.
! operation and not Capitalization. We were
J satisfied that We could not adopt or adapt
: 10 our use an organization like the central
+ banks oI Europe OF the Second Bank OF
! the United States.
4 Among the provisions OF the plan intend
1 "a to remedy defects and cure existing
| evils arc:
/ F1rst-To insure the maintenance Of ade-
, qudte reserves by The association and It's
I members, with such provisions for dis
counts and note issues as shall enable tiis
oI IGanization to respond promptly at al
| times To normal or unusual demands fol
4 credit OF currency without danger Of undue
expansion or imitation.
/ SeCond-To provide for concentration OF
/ the cash reserves OF all the banks TO be
! used for the assistance and support of any
! Under assured deCentrali iZa tion Of control
/ scatter ed reserves have been found use
/ less I'm times OF pressure. Deposit bal
I snces in the Reserve Association are tc
/ be counted ss legal reserves.
Third-To authorize the dssociation tc
! under local control commercial paper OF
( definite character for individual banks
! to he used in repenishing their reserves.
/ Fourth-To give TO individual banks the
/ and loaninE power which will enable then
! TO adopt the policy which has been univer-
| sally effective I'm other countries Of aallay
/ ing excitement. creating confidence and
/ preventing panics by prompt payment ot
! all demands and obligations as presented
/ and at the same time granting a liberia
! line Of credit TO oil deserving customers
I in times Of uncertainty and distrust
! Ffth-To grant the power for further
/ note issues to this cooperative association
| of all the banks. authority which is now