Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-01-18
Experts on National Currency
Discuss Money Question.
CALL PRESENT SYSTEM BAD
Active Campaign for Betterment to
Be Carried On.
MD0RSE CENTRAL BANK IDEA
A. Piatt Andrew, Assistant Score
tary Of Treasury, Makes
Principal Address.

1.-THE most profound and comprehensive
; attempt at constructive financial legisla
ton which the country has witnessed
since the time of Hamilton
Expressing this opinion of the suggested
plan for monetary legislation submitted
by Senator Nelson W. Aldrich to the ma
tional monetary commission, A. Plat,
Andrew, assistant secretary OF the Treas
ury, discussed the Aldrich plan in his ad
dress before the business mems monetary
conference. held under the auspices OF
the National Board Of Trade, in the Will
lard Hotel. this morning. Mr.. Andrew
considers that the plan attempts to cor.
rect all deficiencies in the existing bank
ing system.
That the conference was called to OBJ
tain consensus of opinion and to con
centrate the views Of business men Of the
United States upon particular financa
| reorganization projects. as they might
meet the Endorsement Of the Commercial
interests. was the announcement made
by President Frank La lame in his ad
dress of welcome. He declared that the
National Board of Trade had no policy t.
lay before the conference, and that the
deliberations were entirely in the hands
\
the discussion.
| The central bank idea-or it's equivalent
the Aldrich plan of a reserve association
| found Endorsement in the views expressed
| by Welding Ring of the New York Prod
uce Exchange AS one of joint com
| m1ttee representing the united action or
| q financial reorganization problem of the
Chamber of Commerce of the State o
| New York, the Merchants Association
| OF New York and the Produce Exchange
OF New York, he presented resolution:
| embodying their views. and indorsing the
plan of central bank.
To Carry on Campaign.
The organization of a Business Men:
Monetary Reform League to carry OF
an active campaign of education ane
propaganda for monetary reform on thu
NEUTRALITY-SUSPICIOUS. indorsing every de
| tail-of reserve association will
branches in the business centers of tn,
| Countrywide Aldrich proposition-wa:
proposed in resolutions submitted by ]
T. Truesdell of the New York Produce
Exchange.
That the Aldrich plan has one de-
| f1clency was the view expressed by Fin
ley Acker of Philadelphia. Its failure
| to provide for guaranteed credit cur
| rency he considered a serious omission
| Mr.. Acker expressed the opinion tina,
| any pidn must De toSteC
| by its provision for emergency currency
that will contract and expand automat-
| ically.
The financial problems. and especially
the Aldrich plan. were also discussed by
| John 8. Rossell of Wilmington, Del, who
doubted the wisdom of legislation which
| would destroy the present entity OF trust
| companies and state banks.
/ Resolutions submitted in open meeting
| and those offered by various trade or
i a N n1 xltt hn Natsa
Board Of Trade were referred to com
mittee of sixteen members. of which Pau
Warburg. a financial authority and advo
cate of the central bank idea, is chair
man. Other members of the committee
are Joseph French Johnson. G. Stuar,
| Patterson, Irving t. Bush. Welding Ring
Samuel Sacks, Charles England Edward
A. Filene. F. l.. Hitchcock. George IL
Maxwell. {. q. Vaille, John Scott, r. j
Mclean. Finley Acker. Howell f. Eng.
| land and John S. Rossell
c. Stuart Patterson Presides.
President La lame called the confer
ence to order shortly before II o'clock
He resigned the gavel to c. Stuart Pat
terson of Philadelphia. who presided over
the rest of the session.
1.-THE currency system of the United
States is not a credit to us said Mr.
| Patterson on taking the chair 1--WE
| should have the best What we have is
| far from the best
We have too many kinds of currency
that DO not fill the proper functions that
any kind of currency ought to have our
currency does not expand and contrac ct as
| it should.
We have safe banking currency. but
it does not respond to the demands of the
trade. But the banking system is also
| detective. The reserves do not fill the
| proper end and object of reserves
| Ihese defects are not defects OF today
or yesterday. They have existed for a
| long time. 1t Is today the paramount
duty of the business men of the country
to hold up the hands of the national
| monetary commission and to bring into
being condition of public sentiment that
will aid in proper legislation
| Finley Acker then discussed the need n,
a national guaranteed credit currency
He considered that the ) per cent security
bearing interest at > per cent, woulC
amply protect against possible loss.
He considered that this need had beer
lost sight of in the agitation for cen
trail bank, but hoped that it would form
a subject Of consideration in any reform
legislation.
Defects in Banking System.
Assistant Secretary of the Treasury An
drew, in his address. enumerated six de
fects OF the present banking system OF
the United States, follows:
The lack of any mechanism of suficien
range and power and known 10 be sui
hciently disinterested to secure co-opera
ton, unity of policy and uninterruptef
exchange among the banks in differen
parts of the country.
The rightly of banking reserve regu
lations and the immobiity of reserve.
which results from that fact and from
| their parceliZation among 5000 banks
The lack of any we'll organized market
for commercial paper and the consequent
necessity felt by our banks in order Il
keep their funds liquid, to lend large
amounts on call upon stock exchang.
collateral
The absence of any fexibility in oul
note issue and the monumental charac
ter of the assets required by law to Sc
| cure the notes.
The intermittent interference of gov
eminent finances with business resultins
from the segregation OF government
funds in the independent treasury.
The lack of uniformity in banking prvi
leges and regulations due to the existence
of several classes of banks subject to tn
varying laws of forty-six states.
Attempt to Meet Deficiencies.
1.-THE suggested plan of the chairman o
the monetary commission he said, at
tempts to meet each Of the deficiencies.
1t provides for greater unity of polio.
and uninterrupted exchange among tn,
banks in different parts of the country:
eliminates the present iniexibility Of GU
banking reserves: it provides for a nation
? al discount market; it does away will
| the bond-secured currency and offers
flexible note issue based upon commercial