The Birmingham age-herald., 1915-05-11
A[DR|CH SHOWED GREAT INTEREST IN RESERVE BANK LAW Made Study of Its Effect Right Up to Time of
 His Death TIME WILL BRING
 SEVERAL CHANGES Columbia University Now Planning for Establishment of the
 Greatest University in
 the World
By HoLLAND

New York, May 10.-(Special.)-The late Senator Nelson W. Aldrich was keenly interested in the organization and the first operation of the federal reserve banking system. He kept almost as closely in touch with the various features of organization and the first workings or the system as he would have done had he been a member of the Senate Al though never in any way boasting or the part he played in formulating some or the fundamental principles upon which the federal reserve system is based, yet he was glad occasionally to refer, im- personally, to the labors of the national monetary commission of which he was chairman. Senator Aldrich was also keenly observant of the manner in which the so-called Aldrich-v -vreeland emergency currency measure served in, the very last months of it's existence, greatly to aid American financiers and bankers in bringing the country out of chaos into a safe and strong condition.
 After this emergency law was adopted by Congress, soon after the panic of 1907 was ended. Senator Aldrich was quoted as having said that he doubted whether the provisions of the law would ever be utilized. It was the moral effect of this legislation which was, in his view, of the greatest value. It convinced the busi- ness world of the United States that thereafter there would be no apprehen- sion of currency or money famine. Be- ing thus confident, money came out of hiding and banks which a few months earlier were, so to speak. starving. cer- tainly boarding, found their deposits so greatly increased that there was an &C., tual redundancy of currency, yet not one dollar of this emergency currency was called for. Nor would any of it have been taken from the treasury had it not been for the grave emergencies which were of sudden created when the war fir Europe began.
 There is one feature of the national reserve system which Senator Aldrich was persuaded would be subject to mod if1cation, although in the last month of his life detected evidences that both the rublic and the bankers were beginning to realize that the perfected system would be reached when unified banking sys- tenn of which a single institution of issue was the center was established.
 Many bankers believe that this modi- fcation or change is inevitable The in utiIuIlOn VIII not De calleQ a central Ddnk, out of deference to political or public hostility which has heretofore been man. ifested to any proposition involving the establishment of a central bank, but if the name can be changed so that instead of a central bank there may be substituted the name Institution of issue" then probably after some years of experience the public and those who are in public life will entertain no hostility toward such an institution.
 This view is taken by many members Of the American Banking association. It is emphasized in brief statement which appears in the current number of the National City banks May circular. There 1t is said that in the course of three years the old reserve feature of the national banking system which was perhaps the strongest factor of cohesion. will have completely disappeared. In it's place will be the prestige of the federal reserve system. There Is confidence that the country will eventually work out uni fled or federated banking system organ lxed around the institution of issue al though the national banking system un- der the present statutes may not be the main factor in the organization.
 -s. The First Step
 The actiop of the federal reserve board at Washington by means of which the northern part of New Jersey is, so far as the federal system Is concerned, trans 4erred from the Philadelphia district to the New York district and other changes have been made is thought to be in line