The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1912-01-31
CENTRAL RESERVE PLAN
is STRONGLY ENDORSED
Will Cure Weaknesses in Ameri-
can Currency System, Says
A. G.. Bartlett

Ger. Bartlett Co, Chicago, and treasur-
er OF the National Citizens League
J for Monetary Reform, vas the speaker
I'm the regular monthly meeting OF the
Detroit Credit Mems association in
Z the or-Woolfenden Cafe,
Tuesday evening and delivered a very
businesslike address on the proposed
Aldrich currency act.
The Weaknesses OF the American
system OF currency said Mr. Bartlett.
are lack OF elasticity, inability TO ex-
pand 10 meet the needs OF business,
the tendency 10 hoard reserves in the
banks when money is most needed for
circulation. and the lack OF co-opera-
lion among bankers. While there
may ce some faults in the manner OF
working il out. the Aldrich monetary
llan providing for a central reserve
association would remedy these weak
nesses
Mr. Bartlett went on 10 explain the
workings of the proposed measure
from the standpoint OF the business
man. showing how the government OF
the central reserve association was
safeguarded so that no clique OF bank
ers could get control OF il and how II
provided for the needs OF legitimate
=
business.
1T is utterly impossible for an or
ganizatlon from Wall-st or any other
money combination 10 get control OF
the majority OF the 46 directors OF the
reserve association said Mr.. Bart
lett. t"unless they hold a majority OF
the stock In majority of the banks
in eight OF the Is districts into which
the country is divided under this plan
This is, OF course, quite impractic-
able.
The plan provides for uniform dis
count rates for the banks all over the
country, so that there Is no posi-.
bility OF discrimination against any
bank or any section. II will also
make il possible to provide banking
facilities for our foreign trade so that
II will not be necessary to finance
our South American trade through
London.
The issue OF notes by the reserve
association when expansion OF the
currency Is necessary is TO be based
solely on commercial paper. Wall-st
stocks and bonds will have no stand
ing as security for circulation. and by
no possibIe abuse can the reserve as
ISOLATION be made TO provide MONEY
for stock speculation. II is business
mans measure for the henent OF the
business OF the country, including
farmers, merchants and MANUFACTURE
ers.
The only objections to the plan
that have heard is that II Is reVlVal
of the central bank idea and that IL Is
fathered by Senator Aldrich. upon
an examination Of the plan II VIII De
found that the first charge is absolute
ly groundless. II is a Democratic
measure TO the last degree and pro
yides facilities for the smallest oanK
equal to those provided for the larg-
est.
.sThe other objection is insignificant
Senator Aldrich was chairman OF the
monetary commission which mace
careful study of currency problems at
home and abroad and naturally MS
name was used. The senator Is ac-
cused II is true. OF being a repre-
sentative OF the interests, out, per
sonaIly. do not relish my Sunday din
ner any less because | disagree with
INV cook on religious or ethical ques-
tIops. There Is no colored gentlemen
IN the woodpile.
"The Aldrich plan is for the gem
eral welfare OF the entire country, IL
"a in the interests OF all the people.
II Is, in my opinion the only way 70
shut the door against an irresponsible
money power which will seize the
functions that are to be performed oy
the reserve association IL the govern
ment does not provide a way or meet
ing the problem.
The various officers and committees
of the credit men read their annuai
reports in the meeting. Tuesday night
resident w. A. Petzold reviewed the
work OF the year and suggested plans
for this year. G.. F. w. Reid redeemed
a long-standing promise and mao a
reinforced quartet 70 provide music