The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-01-21
ALORICH PLAN WAS
WRITTEN IN ]. P.
MORGAN OFFICE
ellison Gardner Says New York
Financier Took Taft and Rhode
Island Senator by Storm and
Forced Bank Scheme on Them.
Arrived in Washington Sunday Night
and Arranged for Presentation
To the Public.
BY gibson GARDNER.

" OANs JAIL GVs h0 ttts@
is out. Aldrich's bank scheme at last
has come to light. II is not cen
trail bank. as Mr.. Aldrich says. 1t ID
a much more ambitious scheme than
any central bank.
The proposed bill might well be
called "a bill 10 turn over all i'm
portant powers and duties OF the Uni
ted States treasury 10 syndicate oil
national bankers controlled by J. r
Morgan and successors"
A charter for this and ether pur
poses to last for half a century Is the
basis OF the bill.
The proposed federal banking trust
would be given power to control al
issues and Withdrawals of paper
money. They would discount bonds
receive and use without paying in
terest all government deposits and
foreign business as well as To monop
olize all fiscal business In the United
States.
Nothing would be left for the treas
ury department except bare admin
istration duties. The secretary OF
the treasury would become a sort o.
chief clerk for the reserve associa
ton OF America"
In 1t ssimpler form the proposed
national fiscal trust Is to be a corpor
alton with capital of $500. 900, u
which all national banks subscribe
There is to be central organization
- nfH pin Ii
composed of national bank PRESIDENT
and prominent finanders, but the rea
control goes back to board OF nine
members, FIVE OF whom are to be ap
pointed from among the bankers. ant
the other four to be government ofi
cials. r
In words OF one syllable, this means
control by J. Pierpont Morgan. D
course, the Morgan interests woult
name the five private directors. an'
of course the government director
would be tools Of the Morgan IN
terests.
The proposal is one Of such stipend
Gus impudence that the country VII
have difficulty In comprehending al
that II means. The memorandum
breaking 1t to the country Is filleI
with technicalities. and is calculated
| n not intended, to hide the real char
acter OF the scheme There Ia 10
| OF Talk about a division Of the cour
| try into districts and an organization
of the bankers within the districts
but a careful reading OF the origina
memorandum makes 1t clear to tn
least expert mind that the old idea
| a mere central bank was kindergai
ten game compared to the proposition
which is now brought forward.
II is significant also that the mem
| orandum of a bill'-for that Is tn
form in which this scheme appears
does not come as a report from tn
monetary commission. which has bee
drawing pay and issuing pamphlets TO
SO many months. I learn at frs
hand that members OF the monetar
commission hadn't even heard OF TIL
proposed memorandum for a bill unit
1t was sprung upon the public Tues
day.
The remarkable memorandum wa
| in fact brought to Washington by .
Pierpont Morgan, Sunday night. II
arrived In his private cal, went Z
the residence OF Senator Aldrich, VIII
has been ailing, and after conference
with the Rhode Island senator, II wa
agreed that the memorandum shout
be given to the public before Aldrich'
departure for the south.
II is understood that Mr.. MorgaI
was insistent upon this against tn
advice of Senator Aldrich. Mr.. MOI
gan evidently being fearful lest tn
senator's illness might prove fata
and might interfere with the origins
plans laid out for this financial lee
islation.
Therefore, instead of introducing tn
matter privately and tactfully to Ind
| yidual members Of the commission
and keeping up the pretens chat tn
scheme had Its origin in the stupeno
Gus labors of this stupendous body
that CHEEKY fiction has now bee
abandoned and Wall-st. steps to I'll
| front, handing out It's memorandum Q
things desired, IL not demanded, b
'our uncrowned king" j. Pierpon
Morgan.
In truth, the memorandum for
report from the monetary commissio
was prepared by Francis Lynde Ste
son. particular private counsel for tn
Morgan banking house, veteran l
the service, who has drafted many
bill for many a legislative body. to b