The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1911-11-23
The Aldrich Currency Plan
SOME OF THE ADDRESSES DELIVERED BEFORE THE AMERICAN
BANKERS ASSOCIATION IN SESSION AT NEW ORLEANS

basis OF the plan proposed for the or
g%anization of the National Reserve as.
ISOLATION Of the United States.
While 1t provides for c%entralizins
the reserves of the country ii does not
provide for centralizing the power: the
assembling of such large reserves will
create an increased ability to extend
tralized and be turned back to all OF
the banks instead Of remaining in the
hands OF bankers in the central re.
serve cities as Is now the a
ITO secure credit now the public
must depend upon the ability and the
inclination OF bankers in those cities
TO furnish 1t but if the reserve asso.
citation is formed the country banker,
as we'll as the city banker. will he
the very nature of the plan. an assur-
ance that he can secure, through re.
discounting paper with the reserve as
ISOLATION. the credit necessary for the
protection of the industries Of his COM
munity when they are conservatively
managed: therefore, the plan, while
providing for the c%entralizing IF our
reserves, provides for a decentraliza-
ton of credit which. in view Of the fact
IS per cent of our business is done on
credit, means the decentralization OF
he business power those reserves
create.
Il hope you will get clear in your
minds that under the principle that
reserves are held only as a protection
to credit. and that since credit itself
is the controlling power in business,
the credit large reserves will justify
is given back to the members OF the
association. or the thousands of banks
located all over this country. thereby
dnNartNol{rSo- n-l <~S-- o.
n control Of a few that power so vi
tai to business life.
The plan proposed is not a wide
departure from our present system,
Rather it augments and widens the
system, correcting the weaknesses in
the plan and furnishing the .machin.
cry for the natural ebb and flow OF
business and a constant increasing and
decreasing of credits and the rise and
Tall OF the amount Of bank notes in
circulation.
The adoption of the proposed plan
would enable a banker in q small
community to exchange his draft for
% per cent Of the value Of a car OF
grain. then accompanied by q bill OF
lading. into either bank credits
through the use of which he could
Nquidate his debtedness, or he could
exchange hat bill OF lading credit in.
to bank notes or currency through the
National Reserve association, which
bank notes it is provided shall he Sc
cured one-third by gold coin and two.
thirds by commercial credits of the
character l have described.
IF the proposed plan becomes q
law it will provide an institution which
will be able to extend credit in pro-
portion to all the reasonable needs OF
business in this country, and at the
same time safeguard against the over.
expansion of credit.
1T will provide also a system o,
bank notes which will be sufficient,
elastic to enable any bank that is sol.
vent and in good standing to transfe,
or exchange its liquid credits into
whatever form Of credit the require.
ments of the community would make
1t convenient for that bank to fur.
nisIl. even to the extent Of furnishing
currency itsclf.