The Jeffersonian. [volume] (Atlanta, Ga.) 1907-1917, 1913-07-10
A LOCALIZED MONEY TRUST.

whether in ignorance or whether in mischief
the TACT remains that gentlemen of the banks and
the Aldrlch plan have been directing their most
FURIOUS assaults against the Wilson Administra-
ton reform bill at points where it practically
duplicates the Aldrch provisions
No one is now seriously advocating the estab-
l1shment Of vast central bank with capital of
at least lOO,O0O,O00 and possible 100000
600, whose great note issues should count as
local bank reserves.
No one is now seriously pronosine that tho
governments fiscal operations shall be turned
over to such bank under directory of FORTY
one men chosen by the subsidiary banks in a
total Of forty-six, and under Governor whom
the President of the United States was graciously
permitted to name from list submitted by the
banks.
These features of the Aldrich plan were re-
Jected by public sentiment the moment they were
reported. They are also rejected by the pending
Administration plan. They will stay rejected.
But beyond this, the Glass bill now before
Congress pays singular tribute to the construc-
tive genius of Mr.. Aldrich and those who had
planted and watered before him. Yet bankers
are now denouncing the very provisions they
once Endorsed.
We are tod that the plan to divide the powers
and functions of a central bank among twelve
erg1Onal Federal reserve banks, under a super
visory government board, is more centralizirg
than similar regional division in the AIdrich
plan. To that the fact carries it's own answer
1t is rather superciously noted that in this
plan national banks may lend money on local
real estate security to limited extent, but this
provision is borrowed from the Aldrich plan.
1t is objected that the running time Of COM
mercial paper which the FederaI reserve banks
may rediscount is ridculously restricted, but
again the Aldrich plan has been closely followed.
No feature of the present plan has been more
hotly assailed than that which empowers the
government board to require one Federal reserve
bank to rediscOunt for another. But the Aldrch
bill did the same thing when it merged ali re-
serves for rediscOunting East for West West
for East
No other feature is SO resented as that which
discriminates against bank paper protected by
stock and bona collateral in favor of commercial
and crop paper, but the Aldrich bill carried the
same discrimination.
Both plans would retire the present bank cir
culation, the one with so-called treasury notes,
the other with central bank notes. Both provide
for establishing American banking facilities
.,~toad. Both would prevent that massing of
reserves in Wall street which is the chief
breeder of panics.
The Glass bill still needs some change. It's
government board will need more banking expe-
rience than is provided. More protection against
imitation is needed than the discretion Of
any board. But altogether the bill provides
safe, studied, effective measure of bank and cur
rency reform.
and more pocketbook opposition. They
saying to the country in effect that there shall be
currency and banking reform unless they
grab all the power, all the benefits and all the
profits. What they demand is not currency and
banking reform but legalized money trust.
Their real objection to the administration bill is