Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-11-13
ALDRICH DEFENDS
MONETARY PLAN
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able. by Influencing sufficient number
OF banks in these local associations, to
turn the balance Of power into their IA
vor. In it's present form the Aldrich
plan renders criticism possible"
A. c. Bartlett, president Of the National
Citizens league:
From a business mans standpoint
there should be called into being an as
ISOLATION. OF banks whose cooperation
would make the association a bulwark Of
strength In times of financial disturb
ance, and an equalizer OF burdens and
benefits in the financial world in times
of peace"
Former Governor Joseph Folk, Mis-
souri,:
Il would suggest a national department
of finance. with fifteen directors ap-
pointed by the president, one from each
Of the fifteen districts into which tho
country is to be divided"
e. d. Hurlburt vice president Mer-
chants Loan and Trust company, Chi
cage:
Unlimited initiation IS dangerous under
tho plan. To guard against dangerous
expansion we should have gold for our
reserve, leaving other securities for cmer-
gencies."
MaeVeagh Suggests Amendments.
Franklin MacVeagh, secretary Of the
treasury, In an address here tonight be-
fore the Western Economic society gave
his Endorsement to the plan OF currency
reform which has been suggested to the
National Monetary commission By for
mer Senator Nelson w. Aldrlch. Mr.
MacVeagh declared. however, that he be-
lieved the plan would be received with
prejudice in congress unless II contained
some provision to prevent banks from
controlling stocks in others.
Il believe the holding Of shares in an
other bank by bank which is q MEM
Der Of the National Reserve association
should be prohibited" he said. This
should be made to apply not only to the
corporate action of the bank, but to
action by substitute method accomplish
ing the same purpose. feel sure that
American conditions are permanently OPP
posed TO any semblance OF branch bank
ing and to any concentration of bank
ownership or control.
II feel that the proposed new monetary
system will be prejudlced in congress
and in the public mind unless provision
Is made against this ownership of bank
stock. In my opinion this should be
dealt with in the Monetary commissions
report. Otherwise am sure congress
will deal with It on its own initiative"
Urges Prompt Action,
Secretary MaoVeagh observed that the
work Of preparing tentative plan had
been marked by an absence of duibbIing
and a unanlmity of purpose, but he said
he believed congress must be impressed
with the public demand for immediate
action.
IF we go TO our representatives withs
out an incorporating belief In the
urgency OF the legislation, we simply In
vite further delay and postponement.
This winters session will have other i'm
portant things before it and congress win
be seriously engaged, barring, OF course,
the paralyzing effect OF the shadow OF the
coming election, so that monetary legis-
lation may not have the right Of way"
he said
I'VE have lived without this reform.
but that merely means we nave--pSen
strong enough to endure. And We can
still live with the threat OF panics hang
ing over us; but why should we? Why
shouldn't congress give us relief? AS
long as We have the present banking and
currency system we shalls have panlcs,
and no longer. Does not this alone create
state Of emergency? Why should it
take another wasteful and degrading
panic to impress congress?"
More Advantages for Banks.
Mr.. MacVeagh said that despite his
cordial opinion Of the Aldrich plan as 1t
now stands. there were some important
features to be considered. one OF these,
as he explained, was provision TO pre-
vent control by stockholding. Another,
he said, was that TO national banks
should be given the same advantages to
conduct q trust company business as is
enjoyed by concerns under state char
ters. lie declared that unless the ma
tional banks had the same money, maxi
Ing advantages as state banks enjoH
they could not hope to survive.
Secretary MaeVeagh closed his address
with a plea that the monetary question
be kept entirely out of politics. 1t is
purely business question, he said, and
has no place In political economics. He
declared 1t would be uEwise politics for
any political party or faction to embar-
rass II by making a partisan issue.