The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-01-17
Much Heralded Monetary
Bill Of National Commits
sion Is Up for the Final De-
cision Today.
| PROVISION is MADE
FOR BANK CHANGES
Aldrich Plans Great Central
Bank with 100000, 900
Capital-Calls u. S. Sys-
tenn Obsolete.
American News SerVice)


form. readjustment of banking con-
ditions and the establishment of a
great central bank with $300.0oo,0o0
capital This is the much heralded
Aldrich plan for monetary legislation
on which the National Monetary Com
mission has been working for a year.
1t was taken under consideration for
final action today by the commission
and when adopted will be substituted
to congress.
The plan provides for complete re-
vision of National banking legislation.
Changes are suggested in the National
banking act which, Senator Aldrich
says, will make it responsive to the
demands of modern business.
Our present banking system" says
Senator Aldrich, which was adopted
nearly half a century ago, fails COM
pletely under stress and has been
found inadequate. The present law is
obsolete.
"One of the principal needs is to
| find some method for unification of
four banking institutions into one COM
prehensive system"
The Principal Feature.
| The principal part of the plan to
reform the banking system of the
country as suggested by the Aldrich
| plan, is the formation of a central
bank, called the Reserve Association
of America. which will be the fiscal
agent of the government of the Unit
| ed States. The authorized capital Of
the Reserve association shall be $780,
0O0,O 900. The length of it's charter
| shall be fifty years. The head office
shall be in Washington, d. c.
The country shall be divided into
! fifteen districts and branch of the
reserve association located in each
district.
! Only national banks may subscribe
to the capital stock Of the reserve as
sociation.
! After the payment of all expenses
and taxes the stockholders shall re-
ceive per cent. Further earnings
shall be divided, one-half to go to the
surplus of the Reserve association un-
til that surplus shall amount to 20
! per cent Of the paid-in capital; one
fourth to go to the government of the
United States: and one-fourth to the
stockholders.
! Inner Organization.
All subscribing banks shall be
formed into associations Of national
banks Every local association shall
be composed of not less than 10 banks,
and the combined capital and surplus
of the members of each local associa-
ton shall aggregate not less than $s,-
0OO, 900. All local associations shall
be grouped into Is divisions. to be
called districts.
| There shall be located in each dis
! trict branch of the Reserve Associa
| ton. Each Of the Is branches OF the
reserve association shall have a board
OF directors.
!
consist of 45 directors. including the
governor of the Reserve Association,
who shall be chairman of the board /:
two deputy-governors. the secretary OF
! the treasury, the secretary Of com
merce and labor, and comptroller oil
the currency. and directors to be eject.
ed by the board of directors of each
branch of the reserve association.
Executive Officers.
| The executive officers of the asso
citation shall consist of a governor, two
Ideputy-governors. a secretary and sub,
ordinate officers The governor and
ldeputy-governors shall be selected bs
the Supreme Court of the Emitted
States The government OF the init
| ed States and those national banks
:! owning stocks in the Reserve Asso
citation shall be the sole depositors in
the Reserve Association.
The government of the United
| States shall deposit its cash balance
with the Reserve Association and
| thereafter all receipts Of the govern
ment shall be deposited with the Re
serve Association The association
shall pay no interest on deposits
/ The Reserve Association may re
discount notes ann bills of exchange
arising out of the commercial trans.
actions.
The Reserve Association shall make
| a weekly report to tie comptroller oi
the currency. These reports shall DC
made public.
| There is hereafter to be no further
tissue. bevond the amount nov out
Istanding, of bank notes by national
banks.