The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-04-16

ilrst advanced by Mr. Fowler were uc-
ccpted. Now the popular support OF
the proposed reform Is lcopardiZcu by
the desire OF ex-senator Aldrich 10
receive credit as its. orig inutvr. The al
tachinS OF his name to the plan is IN.
greatest Obstacle 70 It's general accept
ancc. Ills political record naturally
creates suspicion. The banker and
business man. as well us alikclasscs of
citizens, however, should exaninc Into
;he merits of the measure. IT Is Il
matter Of vital Importance. Political
prejudice, or tho suspicion OF an un-
trustworthy public servant should not
81 permitted to injurc the prospects OF
legislation which in Itself may be pros
hiotlvo of the general welfare.
The reforms proposed by the Ma
:ional Monetary Commission arise from
sell known and generally accepted dG'-
iects In our present national banking
system. The law as g. stands to- day
as substantially the Ganc as il was
when enacted in 1868 In order 10 create
4 uniform currency an,. 10 provide u
market for the sale Of United States
0onds The commerce aud Industrial
activities Of the nation nave outgrown
:he system. and II does not meet the
requirements of mOdcr.t business. 1t
does not provide q currency which an
tomatically expands ard contracts ;,c-
cording to the needs OF trade. Fur
ihcrmore. it forces tho banks for their
own protection TO pile up millions In
!dlc reserves. which could be used 70
advantage In times OF panic or busr-
ness stress the system operates to III
crease this boarding ual to prevent
the granting of loans wncn loans are
most needed. The scattered reserves
also breed panics, and there is no cen
trail agency through wh'ch the money
II. IA,
il!zcd in order o promote business sta
Dility and TO insure tho proper de-
vclOpment OF industry and commerce.
The so-calIcd Aidrich or National
Monetary Commission plan conteln-
Plates reform i'll our present dcfec-
tive banking system, By Incorporating
"a National Reserve Associations This
incorporation will bring the banks OF
the country into u cooperative union
without destroying or i:npa.ring com
petition or independence. The idea is
not a new or radical one. but an out,
growth OF our banking experience.
The National Reserve Association Is
nothing more than an enlarged clear
ing house with certain well defined
powers. In 1893 and 1907, re banks
In the principal cities, by cooperating
voluntarily through Their local clear
Ing houses, were able 20 prevent thH
spread Of panic aud financial disaster
and to restore confidence. The pro-
posed plan Of reform is the same kind
of Organization amplifcd, ia
tionalized and Icgalized.
The National Reserve Association
would have capital Of not less than
$500. 000.0 900. 1t would he owned by
the banks OF the country. and shares
would not be transferable and could
not be hypothecatcd There would be
no ownership of stock in the associa-
don by private persons or corpora
! lions. 1t would have dealings only
with the other banks and tho govern
ncnt. It's business would be conduct
erous local associations distributed ac-
business needs of the country.
The system Of control would be rep
rescntative and democratic. and would
be free from the domination of any IL
aancial or political interests. The local
associations, composed of individual
banks. would be Safeguarding. They
s'ould elect the directors of rho
branches. and the directors of tho
branches in turn would elect the dl-
tectors OF the national association. The
secretary OF the Treasury, Secretary
of Agriculture SECRETARY Of Commerce
| and Labor and Comptroller of the Cur
scncy would nc OK niIicio. directors nf
| the National Reserve Association. The
| Cinvernor, or chief executive officer.
| would be selected by tee President of
the United States from a list'of names
submitted. by the directors. The SOW
4 ernpr would be subieet to removal