The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1913-06-01
DISCUSSION OF
MUCH BERATED
ALDR|CH PLAN
ITS AUTHOR CANNOT REPREss
SMILE WHEN HE CONTEM-
PLATES SOME OF THE Re-
FORMS NOW BEING SERIOUS
LY CONSIDERED BY DEMO-
CRATIC LEADERS.
BY WINFIELD JONES,

Washington. D. c., May 81.-Former
Senator Nelson w. Aldrich Of Rhode
Island. author Of the much berated
Aldrich currency plan. probably is I'M
able to repreSs a smile when he con-
templates the currency reform plans
now being seriously discussed among
the democratic leaders.
That the proposal of the democrats
most prominent in currency matters
is to take essential parts Of the Al
drtch plan, with the omission Of the
central reserve association feature, is
becoming palmer each day. This is so
well understood that some Of the
strongest advocates Of the AIdrich
plan have come to the support Of the
democratic idea and have made their
support known to the administration.
The regional banking association fea-
ture Of the democratic plan is looked
on by some of the men who have had
most to do with promoting the Aldrich
central reserve association as in real
ity laying the foundation for the CEN
tralized scheme which the former SEN
ator from Rhode Island fathered.
One Of the embarrassmentS of the
administration in trying to frame a
currency bill concerns the number of
regional associations to be esta blished.
The widest variance of opinion pre-
walls on this. Some of the big bankers,
who are for the democratic plan, ad-
quarters, twenty or more are advo-
Gated Some think there should be
such a regional association, in every
state Nearly every section wants to
be a financial center, and the admins
tratfon Is finding that while It might
be a good thing politically to crafty
the wishes of each section, there Is
danger IN 1t from a banking and cur
rency standpoint.
It Is discovered that If the regional
-
and spread out too thin, some Of the
regional reserve banks would find
themselves located alongside of indie
pendent banks which were much
larger than the regional institutions.
It would hardly do to have the head
bank of regional association of less
Importance than a single Independent
bank in its own territory. and this Is
one OF the problems which the creators
Of the proposed new system will have
to work out.
How to relieve the banks Of the 2
per cent bonds which are now used to
secure circulation and public deposits
is a question also involving difficult
ties. Indications are that a way will
be found out Of this. Democratic lead
evolve a plan for the retirement Of
these bonds. Chairman Glass of the
house currency committee, has sug-
gested g. plan for retirement Of the
old notes at the rate Of about 10 per
cent per annu1n for ten years, prob
ably through the issue Of 8 per cent
in place of the &c. It Is an interesting
fact that in the last few years no issue
of bonds having the circulation privi-
lege has been proposed.
In relative way, the greenback will
not cause much trouble IN the formu-
1ation of the new currency scheme.
The government gold reserve and the
gold supply throughout the country
are each several times in excess Of the
amount Of greenbacks outstanding, and
hence demand for their redemption
would cause no discomfort.