Pine Bluff daily graphic., 1912-09-11

'Aldricr Bill, also as sThe Monetary Commission Bill Aldrich's name as member of the committee has pre- iudiced some people to an eX- tent that they refused to read he report. However, this question: is bigger than any man CT parry, and to demonstrate this fact the business men of the land in fheiT national cOn- vention at Washington D. C., 1910, decided in order to eliminate an inde
 pendent non-politlcal committee of which J. Laurence Laughlin, profes- sor >f finance and political economy, Chicago University va schairman, to study the question and report at the next annual convention Of Ameri can business men. This committee reported and they also declared that panics could be avoided and proposed a remedy similar to the congressional report. These reports being conclu- sive our business men asked that our legislators get together on a modern bill with a sound money basis and proper currency reform as it's object. Our congressman favor the movement
 in general sense, but do not feel sufficient demand at home to cause them to act. They realize that what ever bill is submitted to merit their support must be for the benefit of their constituents ard for 5he people generally, and as every man is vltally interested it would be well for you to write your congressman asking him to give this matter his earnest and immediate attention, and thereby change the present conditions. NOW, every deposit in the smaller banks, or ! part Of it, is sent to the next larger city. For instance, in he small banks throughout Arkansas. if deposit of $50.000 is made, part of it is sent to Little Rock or some nearby city of large bank connections, and that city, or Little Rock sends part of the money 10 St. Louis or Chicago, and part of that is then sent to New York. And practically at all times of the year there is ac- cumulated in New York banks prob ably 40 per cent of all our currency
 "Under the present reserve require ments of the laws of the United States, the banks in St. Louis, Chica- go and New York must maintain ra- serve of 25 per cent of all deposits, and as the money deposited with them is subject to craft from their cores pcndents, it at times, becomes very serious question with the banks in these larger places to lend out the money profitably and yet be able to meet the demands of their corres- contents. which they do by maintain ing reserve. Under that condition they can only loan money out to mer- chants and manufacturers on time loans and are forced to loan money on call to Wall Street gamblers and speculators with stocks and bonds as collateral and it is this system of IT. nancing which primarily causes more speculation on Wall street and margin buying and selling than any other reason.
 Now. it is the object of the None tary Commission Bil or Aldrich Bill, and part of the work of the National Citizens League to have congress pass a bill growing out of our expe- rience of the clearing house Assocla- tions in 1907, that the notes of manu- factures and merchants may be used as basis of issuing currency by the natl onal reserve associations, which would prevent the possibility of panics at any and all times, and it is a part of their recommendations that collat- eral in the shape of stocks and bonds cannot be used as basis for the ls- suance of any currency under the terms of the law.
 "The banks in New York, Chicago and St. Louis are invariably in favor of this plan, but the spectators are not SO keen about it, and you can readily see that they are loath to let go of the present plan, or to make any change in our present monetary system which would make them pay more for the money in case they bor- rao,,wsed it, and particularly so since that class of collateral would not be quite so acceptable or as easily con