New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-07-13
THE ALDRICH PLAN
Correspondent Believes It Is Pounded
on a False Theory.
li+or of Tho TriblIne.

To the Editor Of The Tribune.
Sir: In your issue OF July Theodore
Justice advocates the Aldrich plan, and as
serts that such a change In our currency
system is needed to avert panics. he also
accuses Senator La Toilette and other IN
surgent Republicans Of showing lack CT
comprehension and Of "resorting 70 '"iiiui
misrepresentation" in order to excite tue
public against the plan. =.
In reply the "Insurgent Republicans
charge the advocates Of this new currency
scheme with systematic and wflful misrep-
resentation in order TO mislead the pupllo IA
regard to the cause Of the last panic aho
the financial stringencies OK recent years.
The argument for currency reform 10
based on what may be called the Aloricn
theory OF the cause and effect or the con-
centration OF money at New YORK ihis
theory asserts that after the crops arc
moved interior bankers have more money
than thev can find use for at home, ana SO
thav send Il on to New York to be invested
in 2 per cent call loans. Thus great spe'u
lations are encouraged because money 10
CHEAP. Then In the following fall tAusus'
and September) this money Is caiIeo hon''
N move the crops. Vice-Chairman Vreo-
land OF the Monetary Commission VICTOR
Morawetz, the banker, and other authori.ies
estimate the amount of money thus recaIieu
in the crop season at s200OOo,ooo. The Mon
otorv Commission accepts this estimate
and IN its report to Congress on the Al
dricb nlen January O. 1912 states that IL
has allowed 100000 for the natural eH
mansion for crop-moving demands Ana II
ia this alleged strain upon New YORK DanA
reserves which 1t is claimed is the great
first cause of high money rates pank oei-
let's and panics
Such is the theory which forms the basis
of the main argument for currency reform.
os ov,Ioited nv Messrs Adrich, Vreeland'
y Uepburn. George w. Perkins md
o,bar financial experts. But II is raise
theory. and is based on number or gar
ing and "wifu misrepresentation. lho
fret OF these misrepresentation is III 'e
card TO crop financing. Statistics turnisneu
nv ..Dun's Review" and The wall Streo>
JournaP show that for the five years END
cd with 1910 the net movement OF curreh-
cv from New York 20 the interior In August
o,d September was as follows: 1906, SSo,ooS.-
90. 1o07 ,.7il 600; 1903. 1896 1899. slo'"so-
1901 was more than made up 20 New YORK
hanks by aid from the Treasury. For THESE
FIVE years IL appears that the experts were
from 1854 10000 to S1eeO00,ooo out OF the way
in their estimates OF the actual movement
~ cash. That is enough to show that tho
argument for the Aldrch plan is resting
upor a wiIful misrepresentation, and the
statis,ics for 1911 clnch the matter THESE
statistics show that 30 far from losing
900 900 go in the crop season OF last year
EAw York actually gained S2i,cooO from
the interior.
II is not necessary to point out the rea-
sons for this remarkable change IN the
movement of currency; It is enough 70
know that II has taken place, because II
nroyes beyond the shadow OF DOUBT that
all the talk about high money rates inelas-
tic currency and panlcg being due to crop
demands Is absolutely false. 1t is the ad-
yocates OF the Aldrich plan, now It's oppo-
nents, who are iudulging In 'wilfui misrep-
rasentations." They are advocating q
scheme OF currency that will not stand the
tsst NJ public discussion or open invesi-
cation 4 fuller statement Of the move
mont Of crop currency was gtven,in my
ortlolo on the Aldrich plan in the May MUM
Der Of "Noody's Magazine" but up 70 tnls
rresert time It's correctness has not been
disputed by the friends OF that plan. AS
Mr. Justice appears to be quite Comment
Of the soundness OF his Views perhaps ne
may he inclined To take up this end or the
s,sc,ssio, w. II. ALLEN.
Brooklyn. July s. 1917