The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-01-18
ALDRICH PROGRAM PROVIDES
FOR RESERVE ASSOCIATION
No Central Bank in Plan Laid
Before Monetary Com
mission.
MAIN OFFICES IN CAPITAL
Long Awaited Scheme for Cur
rcnoy System Reform Made
Public.

Washington. -. c.. January lI.-Scn-
stor Aldrich's long studied plan for
reforming the currency system of the
United states became public today.
when ii was laid before the Naiiona |
Monetary Commission.
Briefly IL proposes a great asSucia
ton OF national btni;s to bc known as
tho Reserve Association OF America.
which shall be the fiscal agent OF the
government. issue circulating notes.
nN uniform rate OF exchange. redis-
count commercial paper, and deal in
hank acc"ptanccs and government Sc
,uritios
The Senator's plan was presented in
printed form, rs Nj. Aldrich had been
hurried off tn the South by his ply
sicians the day before. In his letter
of transmittal 10 Vice Chairman Kepte-
sentative Nreeland. the Senator wrote
that the plan presented was purely his
own. and not necessarily that OF lie
commission. Much good had been found
i'll the government banks of Europe.
nc said still none of them would be
applicable TO needs in this country. lie
declared he believed the good results
rihich they obtain can be reached with
out the creation of :, central bank. and
expressed the conviction that his plan
would reach those results withou; be-
ing open TO the criticism which might
well he brought against such an in
stitution
Development nf Previous Inv.
In some respects. Senator Aldrich's
plan seems 10 be a high developments,
OF thc law OF 1905. which bears his
name, giving TO national banks of APP
proved standing the authority 10 issue
additional currency in times OF enicr-
gency, secured by proper collateral
lie proposes that the Reserve .\sso-
citation of America shall lie chartered
with capital OF s30O,o0o.o 00 which
shall be subscribed 10y national banks
in amounts relative to tlcir capitalixa-
ZION. Half the capital shall he paid in
and the other hall remain on cali
only the United Stutcs government and
banks owning stock in the Reserve
Association would be dcpositors there
In. No interest would be paid on de-
posts The government. however
would deposit it's cash balance and all
its receipts in the association. and nil
disbursements would be made through
il. in much tho same way us the banil
OF England manages the finances OF
Great Britain.
The association would offer to buy
the United states bonds now owned by
the national banks for circulation OF
bank notes and assume the redemption
Of tho notes they secure. AS fast as
national bank notes were presented ;or
redemption notes of the association
would take their places which would be
covered by onc-third gold or other
lawful money, and the remaining por-
ton by bonds OF tina United states or
other hankablc commercial paper
Centralized mt Washington.
In substantially the same way as
the Bank of France operates from the
stato to the department the arron-
basement the canton and finally the
little commune, Senator .lldrch's plan
il 10 have the operations of the Re-
serve Association, centralized at Nash
inEton. where a governor. appointed by
the President and removable for cause.
will he in charge with hoard of forty
five directors The organization would
extend to branches, each in charge of "a
manager and board OF directors. and
these branches in turn would extend to
local associations OF national banks,
which make up the whole.
TO thar end. the United states would
be divided into fifteen financial dis