The Washington times., 1913-05-24
ALDR|CHS n)EE7N-
DEMOCRATS PLANS
Features Of the Former G. O. P.
Senator's Scheme Proposed
in Currency Discussion.

Former Senator Nelson w. Aldrich
of Rhode Island, long the arch priest
of high protection in the Senate. and
the reputed author of the much be-
rated Aldrich currency plan, probably
is unable to repress a smile when he
contemplates 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
AIdrich plan, with the omission of the
central reserve association feature, is
becoming palmer each day. This is
SO we'll understood that some of the
strongest advocates of the Aldrich plan
have come to the support of the Demo-
cratic idea and have made their SIP
port known to the Administration. Inc
regional banking association feature OF
the Democratic plan Is looked on py
some of the men who have had most
to do with promoting the Aldrlch cen
trail reserve association as In reants
laying the foundation for the central
lied scheme which the former Senator
from Rhode Island fathered.
Question As To Number.
One of the enbarrassments of the Ad-
ministration in trying to frame cur
gional associations to be established.
The widest variance of opinion prevails
on this. Some of the big bankers, who
are for the Democratic plan, advocate
as low as four associations. In other
quarters, twenty or more are advocated.
Some think there should be such a re-
gional association in every State. Near
ly every section wants to be hnanciai
center and the Administration is find
ng that while it might be a g0Ai thing
politically to crafty the wishes of each
section, there is danger in II from a
benking and curTNncy standpoint.
II is discovered that If the regional
associations are made too numerous and
spread out too thin, some of the re-
gional reserve banks would find them
selves located alongside OF independent
panks which We're much larger than the
regional institutions. 1t would hardly
do to have the head bank of regional
association of less importance than a
single independent bank in its own ter
ritory, and this is one Of the problems
which the creators Of the proposed new
system win have to work out
How to relieve the banks of the per
cent bonds which are now used to Sc
cure circulation and public deposits is a
question also involving difficulties. In
djcations are that way will be found
out Of this. Democratic leaders seem to
be generally disposed to evolve plan
for the retirement OF these bonds Chair
man Glass, of the House Currency Com
mittee, has suggested a plan for retire.
ment OF the old notes at the rate OF
about 10 per cent per annum for ten
years, probably through the issue Of 3
per cents In place of the rs. 1t Ii
an interesting fact that in the last few
years no issue of bonds having the Cir
cularion privilege has been proposed.
In relative way, the greenback will
not cause much trouble in the formula
tion OF the new currency scheme. The
Gorefnment has about 346 000, 900 Of these
In circulation. The Government gold re-
serre and the gold supply Throughout
the country are each several times IN
excess of the amount Of greenbacks out
standing. and hence demand for their
redemption would cause no discomfort.