The Cairo bulletin., 1911-01-23
Special.
New York. Jan. 2

Special.
New York, Jan. u.
The announcement of Senator Al
lrich's banking plan again brings up
for discussion the all-important prob
len, Of currency reform. The sena-
tors plan has botn its coGr;nendable
and doubtful features 1t Is largely
basel on the idea OF the central bank,
against which there are very serious
political objections because of the OPP
position to Wall Street control OF
such a tremendous power. Senator
Aldrich seeks to overcome tnis OBJ
lection by distributing the stock
among national banks, by organizing
fifteen branch associations ana by
other features III organizations the
purpose Of which is to decentraizc
and distribute power. In many res
poets the proposed bank will resen-
Ele ana largely perform the functions
of a central bank; and 1t may be SAID
that II meets the objections to such
an institution as well as any other
proposal which has been Ert forth.
Among its most excellent features
are the plans for acceptance OF COM
mercial paper and for increasing tae
increased f1uidity OF money lying idle
in banks. Its weak points are chiefly
in regard to circulation, but this part
of the subject Is dealt with sugges-
lively rather than practically, appar-
entity with the iGea of inviting DIS
cussion, so it need not be taken too
seriously. The plan proposes to re-
place national bark notes with tne
notes OF one central institution, the
iesirabilty of which remains to be
proved. 1t also retains the green
backs, which should nave been re-
tircd iong ago.
Present Form Undesirable.
There is little, If any, probability or
the plan being accepted in it's present
shape. Doubtless months OF furtha'
agitation will be necessary before
legislation is even probable; especial
" in view of the next house being
Democratic and politically opposed to
the senate. The central bank ioea
should find much support in the sen
ate, but equally strong opposition IN
the house. II is to be hoped, nos
ever. mat the subject OF currency r.
forr win now be pushed 10 final
conclusion. Unfortunately the ne2es-
sity of such action Is not sufficiently
recognized in the United Sttesa.
Abroad they attach much more i'm
potance to this question than here,
and the establishment Of sound cur
rency system would unquestionably
stimulate the flow of foreign carital
to the United States. The avera2e
business man here would benefit i'm.
mediately from the fact that sound
monetary system would discourage
and moderate panics, whereas cur
present system not. only aggravate5
but actually invites financial crises
Only the big spectators profit by
panics, and then at the expense OF
smaller operators.
FOREIGN Trade More Normal.
One of the most encouraging level.
opments of the day is the return OF
our foreign trade to more normal cor
ditiona. From. March to Decembe
inclusive there has ueen a steady gain
in our exports of merchandise,
total for the calendar year amoununr
to 1864 100000, of $19G,0O0,000 in ok
ces of the year 1909, On the othe'
hand our imports, which for a Ions
season had been running anead o
previous wears, have been declinin'
since the end Of August. During tn
four last months Of 1910, imports ~
clined at least $20000,000, compared
with 1909, although owing to tn
large arrivals during the early month
OF the year, the total imports amoun
Ell to s1,5G2, 100000, or sS7,00o,000 l.
excess of the previous year, The re
versing of the current year to increa'
Ing exports and decreasing imports
gradually but surely bringing our TO
eign trade into much more salts
factory position, and in Decembe
| last we had an excess OF export
amounting to $90,000,00e as again'
$4,000. 900 a year ago. Although W
are entering the season when e,
ports generally decline, condition
are favorable to foreign trade, III
downward tendency of comodli
prices being stimulating to export