New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-06-01

make il possible to convert sound COM
mercial assets into cash and furnish an
elastic currency redeemable in gold. The
committees on banking and currency Of
the Congress are hedged in by the pro-
visions of the Democratic platform. which
are against the Aldrich plan or a central
bank. Fortunately this does not forbid
a sound system on other lines
The plan of these committees is not
yet formulated, but there is good basis
for belief that something like the fol,
lowing will be the main features:
The formation in each of twenty or
thirty districts into which the United
States will be divided of what is de-
scribed as regional reserve associations.
At these various points the gold reserves
of the banks included in the region will
be kept, and through these regional re-
serve associations commercial assets will
be turned into. banknotes. redeemable in
gold and based upon these assets, such
banknotes TO be turned over TO the banks
applying for them at any time These
various regional reserve associations Will
De subject TO the direction Of a central
board of control at Washington-a body
of men elected or appointed. comprising
government officials and business men,
who shall direct the general operations of
the regional reserves throughout tho
country.
The present banknotcs, which arc Sc
cured by government bonds, are TO be
gradually retired by substitution of these
asset banknotes. Probably discount
market will be inaugurated by allowing
banks to accept paper based on com
mcrcial transactions for their customers
Serious Situation Next Autumn.
1T is not FOR us now TO consider the
details OF the plan. What must be inn
pressed is the Importance Of the imme-
date passage Of a sound banking bill,
which shall bc efficient to place our
banking and currency system at once in
position to meet successfully the tremen-
dous strain which now exists and which
will grow more serious as the fall comes
on. especially if the volume of the bust
ness Of the country does not materially
diminish
This is not a time to let politics or in
dividual ideas conflict with action for the
general good
There is every reason to believe, as
has been said, that a very serious sit
uation will confront the country next
autumn, and IL cannot be too strongly
impressed upon Congress that sound
banking bill must be passed immediate
~ 10 avert the danger.
1T is true We have the emergency cur
rency act and if through great misfort
une President Wilson does not succeed
this could be whipped into shape TO meet
the crisis The emergency act is a
clumsy skeleton Of both the Aldrich law
and the regional reserve proposition
zone of the sound provisions Of the
emergency law was that for the estab-
| lishment Of national currency associa-
tons. These are permitted to be organ
lied by not less than ten banks at any
locality with an aggregate capital and
surplus of not less than s5,00Q.c00 The
members are jointly and severally re-
sponsible for the operations OF the assoc
citation to which they belong. Through
these associations currency can be issued
to banks applying. upon the pledge of a.
sets, and in the vaults Of the Treasury
S5o"o.Oc of such currency is lying ready
for use II the provisions are availed o..
to the limit. 600 or 200 associations would
/ formed thus far. In any event. these Ia
tional currency associations should be or
ganized at once throughout the country"