Show WORKING HARD FOR FORTHE THE CENTRAL BANK Campaign of Education Being Carried on by the National Monetary Commission OUTLINE OF THE PLANS SENATOR ALDRICH TO MAKE A ATOUR ATOUR ATOUR TOUR OF THE COUNTRY Washington W hin on April 23 When the United States Congress adjourns at the end of ot this session the signal will be given by prominent members of ot the House of or Representatives and the Sen Senate Senate Senate ate to inaugurate the practical school of ot educating the people of ot the United States as well as the money interests in the great need of nt a central bank as asIn asIn asin In existence In all of ot the other principal nations of ot the world Up to the present time the men in charge of ot this movement have been se seriously serIouslY seriously handicapped by persistent ru rumors rumors mors mom that the establishment of ot a cen central central central bank forecasts financial ruin and andin andIn andIn in the end will be the means of ot securing securing securIng ing to the great money powers and co colossal colossal trusts control of ot every national n resource resource Small banks in large cities have been fighting the new Idea fear tear fearIng tearIng fearing Ing absorption by a central bank while individuals have opposed it on the that it will make the rates of or interest higher Other objections have been a from time to time until the new banking scheme has been born under a great cloud It is now proposed however to bring the establishment of ot this new institution Institution institution tion widely and anel generally before the American people so that a complete understanding of ot Its ramifications can I be readily gained To further the establishment of ot a cent 1 I bank the national monetary 10 commission was S created It Is com composed composed composed posed of ot Senator Nelson W Aldrich of ot Rhode Island chairman Edward B Vreeland of ot New York vice chairman and Senators Burrows of ot Michigan Hale of ot Maine Daniel of ot Virginia Money of Bailey of ot Texas and Representatives of In Indiana Indiana Indiana diana Weeks of ot Massachusetts Bo Bonynge Bonynge Bonynge of Colorado Smith of California Padgett of ot Tennessee Burgess of ot Tex Texas Texas Texas as Pujo of or Louisiana Secretary of ot State Knox Director of or the Mint An Andrew Andrew Andrew drew and the secretary of the commis commission commissIon commission sion Arthur B Shelton Originated With Aldrich The practical school Is an Idea original origInal original inal with Senator Aldrich who Is con considered considered one of or the best posted men on finance in the country Edward B Vreeland has haa long been associated with big financial concerns and Is la regarded Is especially fitted to help establish the proposed new financial Institution The other members of the commission have been identified with financial as aswell aswell well wen as social and industrial affairs The plan outlined by Chairman Al Aldrich Aldrich Aldrich includes a wide dissemination of literature bearing on the subject of what other countries have done In the establishment of ot central banks This work has been going on for tor some time through the missions publicity bureau which has been issuing bulletins and sending them broadcast over the coun country country country try The second step consists ofa ot a number of ot the speeches on the subject which are to be delivered by members of ot the commission In their respective states Senator Aldrich as well wen as Mr Vree Vreeland Vreeland Vreeland land and Mr Andrew expect to travel from one part of ot the country to an another another another other from about June 1 to about No November November November vember 20 addressing boards of trade and various bankers associations in nearly all an of or the big centers Their principal theme it is said will willbe willbe willbe be to overcome if it possible the Idea that the central bank will be similar to the one which existed in Andrew Jacksons day and which proved so disastrous They will speak of ot the ex existence exIstence existence of ot central banks in France England Germany Russia Italy Switzerland and Japan which during war periods or great panics were In Instrumental Instrumental instrumental in quieting the financial pulse of or the respective countries In such suc t a way as to avert serious conse consequences consequences consequences The difference is pointed out between these countries and the United States when the least fluctuation in the money markets government prosecution of ot corporations such as was started during dur during durIng ing President administration tion or the movement of crops from one ono part of the tho country to another causes caUDe a withdrawal of ot money from the centers of trade with Its consequent rise of or Interest rates and an inevitable panic Effect of Central Bank With the central bank it is declared such sueh conditions cannot arise When money Is needed In any and section of ot the country for the moving of ot crops ar arrangements arrangements arrangements can be made easily so that farmers and small banking institutions can obtain whatever currency is necessary necessary s sary If It the government contemplates action against the big corporations it itis ItIs itis is said the central bank will be able to hold the balance of ot money power so that money cannot be withdrawn from circulation The Tho idea advanced is simply sim simply simply ply that where money Is needed It will willbe willbe willbe be sent from this central institution to relieve any financial stringency and that Wall Vall street will In a measure cease to be the pulse of the country To offset the theory that the establishment establIshment establishment of ot a central bank will be the worst calamity that this country has had since the days of Andrew Jackson Director of the Mint Andrew gives an Interesting description of ot the working of the Swiss banking law Switzerland being the last country In Europe to adopt the system of ot a central bank banle The bank began business on the eve of ot a panic which Is successfully resist resisted ed and finally overcome he said The capital of the bank is divided into shares of ot francs each of ot the capital was reserved for tor subscription by the cantons in pro proportion proportion proportion portion to their population and one fifth for tor the Independent banks of issue In the ratio of their authorized issues The remainder was was offered for public subscription It Is still In existence and prosperous That deals the Jack Jackson Jackson son bank a body blow This banking is unlike other banks of European countries In that it has no actual central seat there exists only seats of ot the various bank authorities he continued All branch offices have their own management when grouped under a uniform management constitute constitute constitute tute the national bank The bank is authorized to acquire by private treaty existing banks which carry on a sim similar similar similar ilar business and after atter liquidating their business to continue them as branches of ot the national bank banle Each branch office Is under control of ot a man manager manager ager who Is appointed for a six year term Provisions of Swiss Law LawIn LawIn LawIn In the transition of ot the old system of ot independent note Issue to the system system system tem of a central bank the Swiss law provided that the local banks should withdraw their circulation within three years from the beginning of ot the actual operation of ot the national bank At the expiration of ot this period which will soon arrive the national bank accepts obligations on its own behalf and on behalf of its successors to cash any of ot the notes of ot the bank of issue that may still be in circulation within the following fol following lowing thirty years In the case of at banks that have handed over to the na no national notional national bank the cash equivalent of ot their outstanding banknotes prior to the ex expiration expIration expiration of the three pears the na national national national bank accepts the above obliga obligation obligation obligation tion of redeeming the old notes not presented for tor redemption In a great measure the working of ot the Swiss national bank law will be ad advocated advocated advocated by the monetary commission when the general scheme for the es establishment establishment establishment of a central bank has been prepared Some tentative plans are the retirement of ot all note currency and a uniform currency of ot the central bank substituted a general and uniform banking law the designation of ot branch banks the establishment of ot a broad working system whereby notes can be discounted and a general Interest rate Other subsidiary considerations have been formulated which are arc based on the general banking systems In vogue In Inthis InthIs inthis this country Mr Andrew spoke of ot the beneficial effects of ot a bank of this nature and as asserted asserted asserted that it meant the financial sal salvation salvation salvation of ot the country |