The Birmingham age-herald., 1912-09-08
CURRENCY REFORM
 FIGHT STILL OPEN Will Be Carried Into Next
 Session of Congress 
 PLANS SUGGESTED One Man Points Out That if Truth
 Were Told Wall Street Is the Worst Enemy of the Ald- rich Plan

Washington, September .-(Special)
 Notwithstanding the fact that the pres
 ent session of Congress failed to adopt
 new method of currency reform, those
 interested in this matter are going to
 carry the fight to and through the next
 session of Congress. Should 1t be solid
 ly republican or even working repub-
 lican majority the chances that the na-
 tiona1 monetary system will be changed
 radically will be better than it was
 during the past two years. Should the House and Senate be democratic the
 question nevertheless will be agitated
 before the finance committees of both houses.
 In the view of some of the most emil
 r ent bankers and legislators. 1t is agreed
 that one of the principal needs in this
 respect is to find some method for the
 rnification of our present banking insti-
 tutions into one comprehensive system.
 In other countries. Comptroller of Cur rency Murray says, reserves are concen-
 trated and used freely In any direction
 where needed Under the present system
 here, reserves are so scattered as to be
 unavailable in time of trouble either for
 purposes of assistance or defehse. One of the results of the national bank
 rg act has been to create a banking
 system made up of a great number of
 isolated units, each working within lim- tied circle and each of necessity gov
 erned by its own immediate interests without reference to what would be for the greatest good to all While managers of individual banks may fully recognize
 the necessity of greater cooperation, they
 are, under the law, powerless to effect it. If the present national banking law Is amended so as to permit the forma e ton of an association of all banks of the country to meet these needs a long step will be accomplished. Then. ac- cording to MT. Murray, If more scien- 5 tific basis for bank note circulation is provided so that the volume of circula- < ton will be responsive to the needs of business the two main requirements of satisfactory solution will have { been met.
 "1n addition to that" adds the comp ] troller, If we can aid in creating a dis 1 count market in this country similar ] to the discount markets of Europe SC that the most liquid portion of our bank funds will not of necessity he ! forced to such a large degree as to pre- | sent into the making of call loans upon ] stock exchange collateral, but will, in stead, be available for the needs ol ] commercial business we shall have SC ! broadened our banking methods as tc bring incalculable benefit to the com mercial life of the country" One plan that has been proposed is to 4 onarted the Reserve Association of Amer lea, which will be the principal fiscal ; agent of the government of the United ! States. The authorized capital of the 3 association Is fixed at $300,O00.000 and its length of charter 50 years. The head of the office is to be located in Washing ! ton with 15 districts throughout the coun- try each with it's branch of the Reserve association
 ! Under this plan which is something sim liar to the English monetary system, only national banks are permitted to subscribe for stock on the Reserve association. A national bank having a minimum capital ] stock of the Reserve association equal to 20 per cent of the stock of the sub- scribing national bank. Five per cent of the subscription to the capital stock of the Reserve association will be called in { cash, the balance of the subscription will remain liability of the stockhold- I CTS, subject to call.
 After the payment of express ana l taxes, the earnings of the Reserve asso ciation shall be distributed among tho 5 stockholders to an amount equal to pei \ cent Further earnings are divided one. half to go to the surplus of the Reserve association until that surplus shal amount to 20 per cent of the paid in capi tai one-fourth to the government O.
 the United States, and one-fourth to gC to the stockholders When divi dends shall reach per cent they shall receive no additiona 5 distribution. After the stockholders re celve per cent the earnings shall be di vided, one-half to be added to the sur a plus of the Reserve association and one half to go to the government. After tn, stockholders receive per cent per an mum and the surplus of the Reserve as l sociation amounts to 20 per cent of tn, 4 paid-in capital, all excess earnings shal q go to the government. The minimum
 dividends to the stockholders shall b, cumulative.
 In effect. this Is the plan also sub l mtted by the old A1drich monetary commission or the national monetary ] commission of which former Senator Nelson W. Aldrich was chairman, bu ! which has now been abolished by act of Congress
 2 The plan, although advocated b, 2 fully 50 per cent of the large bank CT, in the country. received severe crit cism a being favorable to the old cen tral national banking idea of Jackson's 2 day.
 However, 1t Is now explained that i is an impossibility for farmers and in 1 dustries of various kinds to obtain money at times, owing to the great de- mand for currency in every section ot the country. It is urged that Congress { should take this matter up during thu coming es-ion and provide for one oi the greatest and most serious setba clSs to commercial prosperity of the coun- try.
 Speaking about favoring the money in- terests of Wall street" said certain New York banker during a visit here why. the present manner of doing bank ing business suits them the best. What 3 do you think would become of the New York bankers, with their fat discouni q privileges, if a central national bank were to be formed in this country under the patronage of the United States gov ernment? They are the fellows that op- posed the Aldrich plan"
 l l Th.nuc Ghrtnt