The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1911-01-16
PLAN INCLUDES
CENTRAL BANK
Senator Aldrich to Intro
duCe Financial Bill.
LAST ACT OF HIS CAREER

Rhode Island soIon Hopes to Secure
Adoption of His Measure Before the
Close of the Present Session, When
He Retires From Public Life-Idea
Modification of the System Now in
Force in England.
Washington, Jan. 16.-Senator AL
drich will soon, it is said, introduce in
the senate a bill embodying his per-
sonal plan for the reorganization of
the national finances before the close
of the present session of congress.
This plan provides for a modified cen.
tral bank system which is designed
to make available the business credit
of the country as basis for currency,
but which will not enter into competi-
ton in the general banking business
of national, state or private banks.
The senator from Rhode Island has
determined on this step as the best
method of educating the business
world and acquainting 1t with the con-
clusions he has been led to draw from
the extensive Investigations of the ma
tional monetary commission.
Whether or not members of that
commission will subscribe with
marked unanimity to the views of the
senator from Rhode Island, who is its
chairman, remains to be determined.
Mr.. Aldrich while regarding the
proposed measure as of vast impor-
tance to the stability of the nations
finances and while, perhaps, measur-
ably proud of the system he has de-
Vised, is wholly open to suggestion
and his purpose in presenting the bill
at this session is the better acquaint-
ance Of the business world with the
conclusions he has reached and the
plan he has devised and which is, of
course, least in harmony with the de-
ductions of a majority of the commits
sion. If those interested in the sub
ject as members of the commission or
as bankers and business men can sug-
gest Improvements Mr.. Aldrich will
welcome such suggestions most cor
daily.
Features of His Plan.
The plan of central bank, modelled
after the Bank of England, was found
to possess practically insuperable OBJ
jections, but Mr. Aldrich will propose
modification of that plan, a bank
which will possess a large capital,
which will issue currency in times of
emergency and which will probably,
in the course of time, replace the ex-
listing national bank notes, which will
accumulate a surplus and which will
exercise certain supervisory power
over the banking and fiscal affairs of
the entire country, similar to that
which has been exercised by the clear
ing house associations in those cities
large enough to maintain such institu-
tions
To facilitate the exercise of that
supervision which is regarded as es-.
sential to the proper utilization of the
credit of the commercial institutions,
and which includes a check on fren-
zied finance and madcap banking, Mr..
Aldrich proposes the division of the
country into fifteen districts, each of
which will choose a director to sit on
the board of what Mr.. Aldrich terms
"the central banking mechanism" and
this directorate, which will be aug
mented by certain of the federal fiscal
officers, will control the affairs of the
central mechanism, as well as pass on
such questions as may be referred to
it by the several districts.