The Detroit times., 1911-11-22
APPROVES ttDRicH PLAN
FOR MONETARY REFORM
President Watts Addresses the
THIRTY Seventh Annual Con-
ventlon of Bankers Assn.

NEW ORLEANS. La. Nov 2l.-
The thirty seventh annual convention
OF the American Bankers association
iopened formally here today.
! The feature of the early session
was the Endorsement by President +.
o. Watts OF former Senator Nelson
Nv. Aldrich's widely discussed plan
/ for a central reserve association.
Watts urged the convention TO uphold
the executive committee or the coun-
! Gil which had previously Endorsed the
Aldrich plan with the words that 1t
would correct all the principal defects
OF our present banking and currency
system
Practically every speaker who FOL
lowed Watts. Endorsed the Aldrich
idea as modified by the currency com
mission, and this seemed 10 reflect
1.-The general sentiment OF the bankers
| Sharply at 10 o'clock the conven-
ton. a brilliant assemblage of hnan-
! cial captains, representing l2,Z'o
banks, was called TO order.
Most Rev James H. Blenk, arch
bishop OF New Orleans, pronounced
Invocation Mayor Martin Behrmann
and r. NJ. Walmsiey, president OF the
4 local clearing house, welcomed the
delegates, Myron T. Herrick, of Cleve-
land, responding.
| In the annual address President
Watts urged the bankers of the coun
| try TO arouse public interest in
monetary reform. He said;
IF the bankers and business men,
who must be the leaders in the move
ment succeed In keeping the question
non partisan and is convincing the
public beyond a reasonable doubt OF
the integrity or the control, then its
enactment into law will be an easy
accomplishment"
Watts repudiated the arguments
lof-the opponents OF the Aldrich plan
Shat II meant the passing of the con-
troll of the finances of the country in
to the hands of small group OF
bankers He said that under the re-
vised scheme no individual would be
permitted TO hold shares in the Re-
serve association, but only banking
corporations.
He also said that out of the 80
elective directors not more than five
members OF the executive committee
should reside in one district Further
assurance of the control would be ap-
portioned to all sections OF the coun-
try. Watts suggested that an execu-
tive commission might be elected con-
sisting OF only one member from each
district The speaker freely admitted
that 1T is practically certain that the
real management and control will
finally rest. either by direct authority
Or nf "a directors
the executive committee"
The report of the general secretary,
Fred f. Farnsworth, was received
with close attention by the bankers.
II showed that the membership OF the
organization is now composed OF IL
275 banks, with capital, surplus and
deposits aggregating more than VA
900 100000
The report stated that the currency
committee of the association had held
frequent meetings with. the National
Monetary Commission and that
branch OF the association was ready
20 Prosecute a vigorous campaign
when the proposed currency measure
shall be framed as bill In congress.
Stress was laid upon the work done
by the clearing house section, which
developed the numerical transit sys-
tenn and which is now experimenting
with a system of clearing house exam
liners in several OF the larger cities.
Farnsworth said that interest In the
work of the association is greater
than ever, as a result of extensive
missionary work" done to create
moro extensive safeguards and
economy in the handling OF the coun.
try's banking business.
The report of the treasurer, Arthur
Reynolds, of Des Moines, indicates
that this work has cost nearly $780,
900 during the last year, within $1,000
of the entire receipts OF the associa-
ton.
In his address on the present mon
.etary situation. former Senator Aid
rich said: THE failure OF the mon
etary system can be largely attrib-
uted to the inability OF banks TO CO.
operate in times OF stress; and TO the
defective. inelastic and unscientiflc
system OF note issue. The Central
Bank association is to be an associa-
ton organized with distinctive func-
tiohs and local self government. The
features OF the plan OF organization
are:
First--To maintain integrity and
independence Of existing banks,
state and national. The new organi-
zation will in no sense be a compet-
tor of existing banks. IL Is TO be
outside OF and super-imposed upon
existing system.
Second-Equality Of privilege for
all banks.
Thlrd-Equality in rates of dis
count or re-discornt TO all banks:
these rates TO be uniform through
out the country.
determination TO be OF a
characte' which will effectually pre-
vent control by local or national po-
litical influence.
Fifth Every means has 20 be
taken TO prevent organization con-
troll by any corporation or combina-
ton OF corporations, individual or In
dividuals In Walls, or elsewhere for
selfish or sinister purposes.
SiV'h-The dominating principle is
cooperation and not Capitalization"
Al the afternoon session Paul NJ.
Warburg. OF the New York banking