equal voice, as Mr. Frame declares, will not the same element establish "ring" rule in the National Reserve Association where each bank does not have equal power, but only in proportion to the size of its capital stock, a Wall Street $25,000,000 bank owning one thousand times as much association stock as the $25,000 country bank. The central bank is rigged to rule absolutely each of the 24,392 National and State banks and trust companies, the big banks will control the central bank and Wall Street owns the big banks. Thus will high finance obtain mastery over every bank and through the banks of all American business and establish a central money trust to legally corner and control for private profit every dollar of public currency and the bank credit of the whole United States for the next fifty years. It is to be a trust of the trusts, with imperial powers that will make it absolute dictator for half a century of all American finance, industry and politics.

Then we shall have only corporate currency, and a government of the corporations, by the corporations and for the corporations-a "soulless" corporate republic.

CHAPTER II.

THE ALDRICH PLAN.

The Bill in Full Reported to Congress by Monetary Commission Analyzed. Amazing and Dangerous "Jokers." 24,392 Banks Legally Tied Together in Great Money Trust for 50 Years.

The bill attached to the National Monetary Commission's report to Congress made January 8, 1912, now pending, is herein printed in full. After each section the comments of writer analyzing the measure will be found. Only a few brief points are so made, because the entire contents of this volume in one way or another bears on some feature of the bill, or on subsequent conditions likely to prevail if the measure becomes law. Comparison of its provisions with those of the two plans for a central bank originated by the New York Chamber of Commerce, one in October, 1906, and the other in January, 1911, reproduced elsewhere in this book, will conclusively show that the proposed functions of the National Reserve Association and of such central bank are practically identical. The chief material change since 1906 is in the management or control. In 1906 Wall Street only proposed a Government Central Bank with the Federal Government in absolute and supreme control. In 1912, emboldened by the panic of 1907 and its results, and belief that the Administration and Congress can be induced to entirely surrender to Wall Street and the banks, it is now actually demanded that Congress create a Private Central Bank named "National Reserve Association," with the banks in absolute and supreme control, the Government selecting 4 and the banks 42 of the 46 directors. The governmental function of issuing and regulating from day to day the volume of the entire public currency, that in 1906 was to be granted because it was to be a public institution under absolute Government control, is now to be delegated to and exercised by this mere private corporation.

The Aldrich plan bill is as follows:

To Incorporate the National Reserve Association of the United States, and for Other Purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the National Reserve Association of the United States be, and it is hereby, created and established for a term of 50 years from the date of filing with the Comptroller of the Currency a certificate of paid-in capital stock as hereinafter provided. It shall have an authorized capital equal in amount to 20 per centum of the paid-in and unimpaired capital of all banks eligible for membership in said National

Reserve Association. Before said association shall be authorized to commence business $200,000,000 of the capital stock shall be subscribed and $100,000,000 of its capital shall be paid in cash. The capital stock of said association shall be divided into shares of $100 each. The outstanding capital stock may be increased from time to time as subscribing banks increase their capital or as additional banks become subscribers or may be decreased as subscribing banks reduce their capital or leave the association by liquidation. The head office of the National Reserve Association shall be located in Washington, in the District of Columbia.

June 7, 1911, the 24,392 reporting national and state banks and trust companies had a combined capital stock of $1,952,411,085.

If all joined, the reserve association stock would be about $400,000,000. That size capital is "authorized" whether they all join or not. The figure is 20 per cent of combined capital of "all banks eligible for membership." If only the 7,331 national banks join, their combined capital on October 31, 1911, being $1,032,632,131, the total reserve association stock will be about $200,000,000, the amount that must be "subscribed" (one half being paid in) before the association can "commence business." Evidently when the $200,000,000 minimum was fixed, it was anticipated that probably only national banks would join; and possibly such state banks and trust companies as are directly controlled by national banks. Although there is no important advantage to be gained by state banks and trust companies by joining, and very serious disadvantages, it was necessary to make a show of impartiality to keep state institutions from fighting the scheme in Congress. Apparently state institutions can join or not, as they like. Subsequently, however, they will be forced to surrender and become a minor part of this universal banking trust or see their deposits and business gradually diverted to national banks by the cry that only such banks as join the association have been made "panic-proof" by the Government. Once the law is passed, every bank can be forced into the combination; and once in they are powerless and never can get out, except by insolvency or liquidation. If necessary, another little panic easily can be sprung as an "object lesson" to accelerate the decision of all banks to join this salvation corporation. Elsewhere we shall see that every bank joining must in everything submit to the orders of the central bank.

A

universal bank trust-a great money combine-is certain the moment Congress passes and the President approves this bill. The President has indicated that he will approve it, so Congress is the only protector of the country and the people against the imperial money monster this bill would bring into being. And the "interests" believe they can control a majority of the present Congress. If they can, then only the people can block the measure. The total capital of this financial colossus, and its power, is to automatically increase as new banks are organized or old banks increase their stock, Congress having no voice in the matter during the next 50 years. While the official head-office is to be in Washington, of course the real headquarters will be at the New York Branch in Wall Street. The moment this bill becomes law it will be an enforceable contract, a "vested right," that neither Congress or any other authority can cancel or change to the financial disadvantage of the corporation. A member of the Monetary Commission so stated to writer recently.

SEC. 2. Upon duly making and filing with the Comptroller of the Currency the certificate hereinafter required the National Reserve Association of the United States shall become a body corporate and as such and by that name shall have power

First. To adopt and use a corporate seal.

Second. To have succession for a period of 50 years from the date of said certificate.

Third. To make all contracts necessary and proper to carry out the purposes of this act.

Fourth. To sue and be sued, complain and defend, in any court of law or equity, as fully as natural persons. Fifth. To elect or appoint directors and officers in the manner hereinafter provided and define their duties.

Sixth. To adopt by its board of directors by-laws not inconsistent with this act, regulating the manner in which its property shall be transferred, its general business conducted, and the privileges granted to it by law exercised and enjoyed.

Seventh. To purchase, acquire, hold, and convey real estate as hereinafter provided.

Eighth. To exercise by its board of directors or duly authorized committees, officers, or agent, subject to law, all the powers and privileges conferred upon the National Reserve Association by this act.