Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-02-05

months to come. Recently Senator Mel
son w. Aldrich, chairman OF the coninis-
sion. submitted to It a plan for the 1orma-
tion of what Is called the Reserve Asso-
citation Of America" This is intended 70
be tentative and to constitute founoa-
ton for action. The commission VIII
take its time in scrutinizing the plan ana
sounding public sentiment. 1t Is certain
that a final report from the national
monetary commission need not be expect
ed at this session Of Congress.
In the meantime the submission OF
Senator Aldrich's plan has served to
bring about widespread discussion. There
are many signs OF an acute public IN
terest in the question OF reform OF the
country's banking and currency laws.
Numerous trade bodies and commercial
organizations have appointed committees
to study the subject. Schools and col
leges are devoting attention to the coun-
trys fiscal system, and students are de-
batting whether changes are needed
Bankers everywhere are discussing the
needs Of the banking and currency laws
and seeking enlightenment.
Sooner or later Congress may be ex-
pected to be moved by all this agitation
and discussion of monetary problems
among the people, and to seek to pass
comprehensive monetary law. How soon
this will be done is speculative, and, no
doubt, depends much on conditions. Con-
gress moves slowly when it comes to
making any important alteration In the
national banking laws. One reason for
this is the feeling that the country has
prospered under those laws. and that 1t
may be unwise to change them materi-
ally. Besides, few members of the House
or Senate have time to make a deep and
careful study Of fiscal legislation and the
needs of the country with respect thereto
Since the civil war there have been few
changes in the banking and currency
Banking Law Changes then the ma
Not Often Made. system was
created. The financial act of 1900 put on
the statute books what the republican
majority in Congress held to be the YER
dict of the people and established the
gold standard. Divers plans for sweep
ing currency reforms were brought for
ward from time to time. but they were
given little attention. 1t was not until
after the panic Of 1907 that there was a
widespread demand for some provision of
law that would afford more elasticity to
the currency system and would tend TO
insure safety in a great financial emer-
gency. The result of this was the enact
ment Of the so-called Aldrtch-Vreeland
measure to amend the national banking
laws by providing for q system OF emer-
gency currency.
The panic Of 1898 was attributed to
the silver purchasing act and to tariff
apprehension, but when the panic of
1907 occurred in the midst OF what
- al Of rAot
perity It led to much criticism OF the
banking and currency system. Since that
time there has been a pronounced feeling
that comprehensive currency reform must
be brought about. The emergency cur
rency measure of May CO. 1908, is a tenn
porary law. It expires by limitation
June 80. 1914. 1t is to be expected that
as the time draws near for the expiration
of the existing law there will be a grow
ing demand for some form of permanent
legislation. Whether this will result in
the enactment of the Aldrich plan or
one quite different is something quite
impossible to forecast.
The national monetary commission was
measure OF 1908. the Aldrtch-vreeland
law. It was provided for by Congress
in unusually liberal fashion. 1t was
given a continuing and unlimited ap-
preparation. No public statement Of the
total the commission has expended has
ing this incumbent
*
As now constituted the commission
consists Of Senator Nelson w Aldrich,
chair m a n,
Serve on Commission and Repre-
After Leaving Congress. Edward B.
Vreeland, vice chairman: Senators Bur-
rows. Hale. Burton. Money and Bailey;
Secretary of State Knox. former Senator
Teller, Representatives Weeks. Smith of
California, Padgett, Burgess and Pujo,
and former Representative Bonynge. The
original act provided that the commission
was to be composed of members of the
Senate and House. But this was amended
so that members of the commission on
retiring from Congress could continue to
serve on the commission and receive the
same pay allowed them while in Con-
gress: that is, $500 year Under this
provision Senators Aldrich, Burrows.
Hale and Money. when their terms ex-
pire as senators March 3. will continue
to serve as members OF the commission.
When the commission took ND the du-
ties imposed on it it's members concluded
that the first essential was the assem-
bling OF needed information on banking
and currency matters, especially on the
money systems of the leading countries
OF the world. A subcommittee Of six
was sent to Europe in the summer OF
laos. A subcommittee was also sent to
Canada. Exhaustive inquiries were made
The governor of the Bank of England
and the directors and managers Of the
great joint stock banks of that country
came before the subcommittee and gave
testimony covering a wide field. In
France. Germany and other European
countries the foremost banking authori-
ties willingly gave information to the
commission. The best informed authori-
ties on monetary questions the world
over were retained to prepare reports and
documents for the use of the commission
1t was found. so members of the COM
mission say. that there was an acute in
terest In Europe in the question of none
tary reform In the United States. The
reason for this is that the business OF
this country has assumed such colossal
proportions that any disturbance here
Is reflected more or less sharply in Eu-
rope.
AS the result of>th commissions eff
fort there has been gathered and pub
lished an unrivaled library Of Information
TENS. No such mobilization of financial
Information has ever been effected any
where. Valuable works in foreign IAN
guages have been translated. The conf
mission has published about fifty vol
umes. large and small, and they have
been sent to colleges, financial papers.
banks, financial writer's, business mems
of this distribution Of Information has
served to quicken the discussion Of mon
etary questions in the United States.