The Detroit times., 1911-01-17
SUBMITS PLAN FOR
CURRENCY REFORM
Senator Aldrich Would Give Asso.
citation Of Depositories Privilege
of Issuing Paper.

WASHINGTON. Jan. 17.-An organ
ization OF national banks--in effect a
central bank--to be called the RE
serve Association OF America" gov
erned by As directors, which will grad.
ually absorb the privilege of issuing
currency until 1t becomes the exclu-
sive agency for that purpose and hav-
Ing other large powers, Is the plan
of currency reform devised by Sena-
tor Nelson w. Aldrich, chairman OF
the National Monetary Commission.
as made public today for the first
time.
Aldrich, having been forced to go
south for his health, was not present
at the meeting Of the National None
tary Commission at which his plan
was announced. Rep. Vreeland (Rep.,
~ ". presided.
Features OF the Aldrich plan fol-
low:
The authorized capital OF the Re-
serve association shall be approxim-
ately $500. 100000.
The length of it's charter shall be
so years, and the head office in Wash
ington, ID. &.
The country shall be divided into
fifteen districts, and a branch OF the
Reserve association shall be in each
district.
The Reserve association, and its
branches shall be exempt from state
and local taxation, except In respect
to taxes upon real estate owned by
It.
A national bank having minimum
capital of at least $4,000 may sub
scribe to an amount OF the stock OF
the Reserve association equal to 20
per cent of Its stock and not less.
Fifty per cent of the subscriptions TO
the stock of the association shall be
paid in cash: the balance will remain
n liability of the stockholders. sub
tect 10 call. Shares of the capital
stock of the association will not be
transferable.
The earnings of the Reserve asso-
citation shall be distributed as follows:
After the payment of all expenses
and taxes the stockholders shall re-
ceive four per cent. Further earnings
shall be divided, one half to the sur
plus fund until that surplus shall
amount to twenty per cent OF the paid
In capital; one-fourth to the govern
ment of the United States and one
fourth to the stockholders, but the
dividends of the latter shall never ex-
coed Ave per cent. When they get
FIVE per cent, one-half OF the surplus
will go to the government and one
half to the association. When the
surplus fund of the association reach
es 20 per cent of the paid in capital
all excess earnings shall go to the gov
eminent.
Subscribing banks shall be formed
into local associations, each composed
OF not less than ten banks with a COM
bined capital and surplus Of $5,000,0 600.
All the loca, associations shall be
grouped into fifteen divisions, to be
called districts.
In each district shall be located a
branch OF the Reserve association, gov
erned by board of directors.
Three important features are:
First-The government OF the
United States and national banks own
ing stock in the reserve association
shall be the sole depositors In the Re-
serve association.
Second-The government of the
United States shall deposit cash bal
ance with a Reserve association.
Third-The Reserve association
shall pay no interest on deposits.
In a letter to the commission Aid
rich said he did not expect the immedi-
ate approval by the commission, but
said his plan would furnish to the
commercial organizations OF the coun-
try, now considering the subject, a