New-York tribune., 1911-01-18
ALDR|CH'S REFORM PLAN
Continued from firs; page.

;he Philippine Treasury to Sc, 100000
and I'm the Trea sury. awaiting disburse-
ment. TO approximately 100000. OF
course, these figures change daily, but
"a fiscal agent Of the United States the
Reserve Association would doubtless re-
ceive as its first deposit from the gov
crnment not less than S1T0ON0OOo, even
should the working balance be no larger
Nhcn the bank goes into operation than
il is today.
The plan provides specifically for tax
ing up nv the Reserve Association Of the
. per cent bonds now outstanding. ana
whom any bonds arc purchased by IN"
Reserve Association it must hold them
for at least ten years The Reserve As
sociation is TO pay no interest ON de-
rosits. II Is. however 10 pay a tax on
such circulation as 1t may issue. IS fol-
lows. on tho first SlOOOO0n0 3 per
cent a vcar: above 500. 10000 and not
to exceed S2O0Oo0.OoO. : per cent, above
5000 OOO.OOO and not to exceed S@"D.-
O00GO. > per cent, and on al aooNs
$500 OOOOOO. s per cent a year,
Provision for Emergency Currency
BY this graduated tax provision -
made for an emergency currency, when
the tax will automatically force out Of
circulation as fast as the extreme need
therefor is dissipated. II is provided
that all notes Of the Reserve Association
shall he secured by not less than one
third gold or other lawful money, end
tho remaining two-thirds by bonds of
the United States or bankable CONNER
cial paper, and these notes are to con-
stitute A first lien on the assets Of the
association.
Provision is made for the distribution
Of dividends the accumulation Of sur.
plus and a return to the government a.
follows. After all expenses are paid the
stockholders are TO receive dividends ~
not more than i per cent on their stock.
One-half of the earnings above that is
70 20 into the surplus until It shall
amount to 20 per cent Of the paid NJ cap
itaI. one-fourth To the government and
one-fourth 10 tho stockholders, except
that the stockholders are to receive in
no event dividends amounting 10 more
than > per cent. Any earnings in excess
OF this shall be paid TO the government.
While the details Of the plan have
hardly been digested by the Treasury
officials they are strongly impressed
after a cursory examination. with its
great advantages They believe. with
Mr.. Aldrich. that il will constitute
monument 20 his services in the Senate.
OF course. no financial legislation is ev-
pected at this session, and It Is realized,
as was forotold in The Tribune, that some
suggestions for improvements may he
made and adopted by the Monetary Com
mission before next year, but II is felt
that Senator AIdrich has presented
foundation which can be approved only
in its details
The plan as submitted by NJ. Aldrich
presents no details regarding the method
Of dividing the country into fifteen dis
tricts. That the commission is expected
10 work out later. II is believed, how
ever. that by this provision, by the
method of selecting directors. by the
provision that the governor Of the as
sociation. although chosen by the Presi-
dent. may be removed only for cause,
etc. control of the affairs Of the reserve
association by wal! Street by any 'ocaI-
ity or by p,'itsaI influence has be-a
made impossTsIs.
II was with great regret that Mr.. Al
drich was prevented as a result of his
illness from submitting his plan to the
Monetary Commission himself and il Is
asserted that had not The Tribune given
an outline Of it last Thursday the Sen
ator would probably have postponed pre-
sentins his plan until he had recovered
his health and returned from the South.