New-York tribune., 1912-01-08
MONETARY COMMISSIONS
PLAN NOW COMPLETE
Banking Reform Measure, Mod
eIIed on AIdriCh'S Ideas, Goes
to Congress Today.
COOPERATIVE BANK UNION
Control So Arranged No One
Section of Country May
Dominate Central Re-
serve Association.

Washington. Jan. THE Monetary Com
missions long awaited report detailing
plan to reform the currency system will be
laid before Congress tomorrow.
It proposes a perfection of Chairman Al
drich's original plan for a national reserve
association. which is to be a cooperative
union of all the banks-in effect, an evolu-
,ion Of the clearing house idea extended to
include q central organization. The report
includes bill to make effective the plan
as II now stands and TO repeal all national
banking laws which would conflict with It's
operation.
Few basic changes have been made in the
,nnroyed plan which Mr.. Aldrich submitted
20 the commission several weeks ago. IT is
proposed TO incorporate the National Re
servo Association with capital equal 10
2n per cent of all the banks which become
members. Before the association can begin
business SlOOOO0O0O in cash capital must be
Maid in. All national banks may become
members as may all state banks and trust
comnanies which conform to certain stand
ards of reserves and capitalization.
The reserve association would become the
6scal agent of the government; hold de-
cash all the present outstanding interest
hearing nuhlic debt: issue circulating notes;
establish a unifosm rate of discount; hold
.be easb reserves of subscribing banks, with
nrovision for their use for only speclhc
nurnoses. rediscornt commercial bills Tor
the hanks. and perform all the functions OF
a great national financial instltutloh'
Divided Into Fifteen Districts
rha limited states is to he divided into
efteen financial districts. Each of these Is
"a have A branch association. when asso-
ciations will compose the central orgdhl%a
,iop The distrct branches VIII De Coii'
nossd of local associations of banks } ne
local associations elect their representa- 'o"
an the district branches, and the latter CO.."
r.rns elect representation in the cenual OF
ganization. .,-- a
pv an elaborate method Of electing a.
rectors in the district branches ana III ''le
central organization the commission
leves n has made impossible the so-'aiieu
..1Uau Street control" as well as conlroi
by anv set of individuals or combination
90 hanks No one district can elect more
.hor three of the thiTty-nine directors on
the main boNro. - 90 ,or
Irrder that plan New York, with q per
,opt ~ the banking resources of the coun-
,ry vould have per cent of the represeil-
.s,ion on the board New England with l.
,er cent of the resources, would nave
,er cont the Eastern States. with al per
-. ~ the resources, would have 10 per
o.nt. the Middle West. with "a per cent OF
che resources. would have 81 per cent; the
con,bern States. with II per cent OF the
resources. would have % per cent ana the
pacific states. with 70 per cent of the re-
sources would have q per cent OF the
representation, ,,,ss,,
W.. states taken together, with n per
csn, of the resources, could elect only twen-
tv-one of the forty-six directors in the Ma
,ionaI Reserve Association, and the South
srn Western and Pacific states with % per
cent of the resources. might have 10 per
,o,t of the representation. The percentages
of renresentation have been based on the
theory that the New England. Eastern ana
Middle Western states, by reason of their
preponderance Of capital, would be entitled
70 elect a maximum of three directors lot
each district.
To effect q combination to obtain a ma
iorit,, NJ the directors a combination of
eiebt districts would be necessary. NO
combination could be made which did not
include more than so per cent of the bank
ing power of the country. The report says :
We think this statement must of itself
show conclusiYeiy that there can be nc
local domination, no domination, of selfish
interests in this organization, ana that feEI
OF possible Wall Street control can nave
no substantial foundation. go,
The commission has been impressed WIT
the necessity of inserting provisions tha'
Syould prevent beyond question the posi-
bility Of its control by any corporation OF
combination of corporations, banks OF
otherwise by any individual or com3lna.
fIon Of Individuals for selfish or sinister
nurposes' No provision of the bill to re-
Construct our monetary system Is OF more
financial Interests Of the whole country de-
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