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IIMUN




ALDRICH




mlyurEs OF THE PROCEEDINGS OF THE NATIONAL MONETARY COMSSION.

(Office Copy).




PROCEliMINGS OF THE NATI()NAL

ONET ARY CO11T S E I ON.

Washingtor, D. C.,
May 31,
The Act of May 30, 1Oi, enti tle d "An Act to Amend the
)
Nati c.nal Barking Laws " clontairio
c€;atitg

pr

National Monetary Couimission:

SEC. 17. That a Commission is hereby created, to be called the
National Monetary Commission," to be composed of nine members
of the Senate, to be appointed by the Presiding Officer thereof, and
nine members of the House of Representatives, to be appointed by the
Speaker thereof; and any vacancy on the Commission shall be filled in
the same manner as the original appointment.
SEC. 18. That it shall be the duty of this Commission to inquire into
and report to Congress at the earliest date practicable, what changes
are necessary or desirable in the monetary system of the United States
or in the laws relating to banking and currency, and for this purpose
they are authorized to sit during the sessions or recess of Congress, at
such times and places as they may deem desirable, to send for persons
and papers, to administer oaths, to summons and compel the attendance of witnesses, and to employ a disbursing officer and such secretaries, experts, stenographers, messengers, and other assistants as shall
be necessary to carry out the purposes for which said Commission was
created. The Commission shall have the power, through subcommittee or often% ise, to examine witnesses and to make such investigations
and examinations, in this or other countries, of the subjects committed
to their charge as they shall deem necessary.
SEC. I 9. That a sum sufficient to carry out the purposes of sections
seventeen and eighteen of this Act, and to pay the necessary expenses
of the Commission and its members, is hereby appropriated, out of
any money in the Treasury not otherwise appropriated. Said appropriation shall be innuediately available and shall be paid out on the
audit and order of the cimirman or Icting chairman of said Onninis
sion, which audit and order slut!! he conclusive and binding upon all
Departments as to the correctness of the accounts of such Commissi()n.
Sm. '20. That this Act shall expire by limitation on the thirtieth
day of .1 tine, nineteen hundred and fourteen.

on:3




2
.

In accordance with the provisions of this Act, the
following were appointed as members of this Commission:
Senators Nelson W. Aldrich, Rhode Island.
William B. Allison, Iowa.
Julius C. Burrows, 1 Tichigan.
Eugene Hale, Maine.
Philander C. Knox, Pennsylvania.
John W. Daniel, Virginia.
Henry M. Teller, Colorado.
Hernando D. Money, Missi&s4pi.
Joseph W. Bailey, Texas.
:eland, New York.
Representatives Edward B. Vr,
Jesse Overstreet, Indiana.
Theodore E. Burton, Ohio.
John W. Weeks, Massachusetts.
Robert W. Bonynge,Colorado.
Sylvester C. Smith, California.
Lemuel P. Padgett, Tennessee.
George F. Burgess, Texas.
Arsene P. Pujo, Louisiana.

Py agreenent of the members, the Commission held its
first r!Leting in the rooms of the Senate Finance Comittee,
at 12 o'clock M. on the 31st of
of organization.

411.6o-111

May, 1908, fr the purpose




3.

There were present at this meeting Senators Aldrich,
Burrows, Hale, Ynox, Daniel, Teller, and Bailey; and Representatives Vreeland, Burton, Weeks, Bonynge, Smith, Padgett,
Burgess, and Pujo.
Mr. Aldrich called the meeting to order, and stated to
the members that the Commission had met for the purpose of
organization.
Mr. Bailey moved that Senator Aldrich be elected as
Chairman of the Commission.

This motion was seconded and

unanimously adopted.
Mr. Hale moved that Mr. Vrtieland be elected Vice Chairman of the Commission.

This motion was seconded and unan-

imously adopted.
Thereupon, Mr. Aldrich t-ok the chair.
After some discussion, it was decided that there be
elected either two secretaries or a secretary and an assistarirsecretary.

Mr. Burrows then moved that Arthur P. Shelton

be elected as Secretary of the Commission.

This motion was

seconded and adopted.
Mr. Burton moved that the selection of the additional
secretary or assistant secretary and the dis'rursing officer
be left to the Chairman and Vice Chairman, with authority to
fill these positions on behalf of the Commission.

This mo-

tion was seconded and adopted.
The Chairnan suggested that a subcommittee composed of
three Senators and three Rcpresentatives night 'ce afloirted




4.

by the Chair, to Tap a plan of organization and of the work
to be done by the Commission, and to fix a time and place
for future meetings of the Cormission.
Mr. Burton moved that the sur,7estion of the Chairman
be agreed to, and this motion was seconded and adopted.
The Cl-airnan appointed au members of this subcommittee
Senators Aldrich, Hale, and Palley, and Represc-ntatives
Vreeland, Burton, and Padgett.
It was agreed that this subcommittee should meet in
Nclw York on the 11th of June to formulate plans for the
future work of the Ccmnission.
The question of a suitable

time for the meeting of

the full Commission was discussed in2or'ial3y; and it appeared to be the consensus of opinion that a date as near
as practicable to the 20th of July would most nearly suit
the convenience of all the members.
Upon motion of 7r. Burton, the Commission then, at
1:45 p.m., adjourned.

At a conference held by the Chairman and Vice Chairman
imm-diately after the Commission adjourned, it was agreed
that Mr. R. P. Nixon should be the disbursing officer

0f
.

the Commission, and that the additional secretary or assistand secretary should be named at snme future time, at the




5.

convenience of the members of the Commission who are "Mem1)ers of the House of Representatives.

Secretary.




PROCEEDINGS OF THE NATIO7AL MONETARY C0111.11ISSION.

Hotel Plaza, New York City,
June 12, 1908.
The subcommittee of the National Monetary Commission,
consisting of Senators Aldrich, Hale, and Bailey, and Representatives IrrPeland, Burton, and Padgett, which was alpointed by the Chairman at the meeting of the Comission on May
31, 1908, to map out a plan of crganization and of the work
to iTe done by the Commission, and to fix a time and place
for future meetings of the Coramission, met at the Hotel Plaza, New York City, on the 11th of June.
All the members of the subcommittee were pres nt except Senator Bailey, who was absent ,Dn account of illness.
The subcommittee held two sessions, the first one from
2 p.m. to 5 p.m., June 11, and the last from 10 a.m. to 1
p.m., June 12.
The greater part of the sessions of the subcommittee was
occupied in an informal discussion of the scope of the future work of the Commission.
At the request of the Chairman, Professor A. P. Andrevi
jr., of Cambridge, Massachusetts, Assistant Professor of
Economics at Harvard University, appeared before the subcommittee.

After a conference with Mr. Andrew 2 the subcom-

mittee appointed him as an assistant to the Commission, at a
salary of $3,000 per annum, his appointment to take effect




2.
when he should report to the Chairman that he was ready to
take up his work for the Commission.
(Note: Mr. Andrew reported in person to Mr. Aldrich on
June 18 1 and his services for the Commission began on that
date).
It was agreed that a full meeting of the Commission
should be called on July 20 1 at some point on the New England coast, and that the Chairman should he authorized to
make the necessary arrangements for the meeting.
(Note: Mr. Aldrich subsequently arranged for the meeting to be held at the Imperial Hotel, Narragansett Pier,
Rhode Island).
The subcommittee authorized the Chairman to request the
Secretary of the Treasury to submit to the Commission his
recommendations as to desirable or necessary amendments to
the administrative features of the national banking laws;
and also to request him to designate an official of his Department to report to the Commission, after a personal investigation here and abroad, a comparative statement of the
system of receipts and disbursements and handling of public
moneys of the United states, England, France, and Germany;
the expenses of such official, while abroad, to be paid by
the Commission.
The subcommittee, thereupon, at 5 p.m., June 12, adjourned.

Secretary.




PROCEMDINGS OF THM NATIONAL MONATARY COMMISSION.
Hotel Imperial,
Narragansett Pier, R.I.,
July 20,1908.

Pursuant to the call of the Chairman, the Commission met
at 11 o'clock a.m.
Present: Messrs. Aldrich (Chatrman),/ Hale, Teller, Money,
Weeks, Bonynge, Smith, Padgett, Burgess, and Pujo.

At 11:10 a.m., after the Commission had been in session
about half an hour, Mr. Overstreet appeared.
In callinz the meeting to order, the Chal.rman stated that
or two of the members, including the Vice-Chairman of the
Commission, Mr. Vreeland, had not yet arrived, and he sueLsested that formal sessions of the Commission should not commence
until they were present.
He sated, in a general way, what the commission had
done up to the present tine.

(This will be found in the min-




Minutes July 20.

2

utes of a preceding meeting of the Commission and a subcommittee thereof).
He further stated

that, 1% his opinion, it would be

impossible for the commission to nake a full report at the
next session of Congress, and that probably the only subjects
that could be successfully taken up would be such amendments
to the administrative features of the national banking laws
and of the Act of May 30, 1908, as could be agreed upon with
practical unanimity.
He also stated that the Secretary of the Treasury had
been requested to recommend necessary or desirable changes
in the administrative features of the national banking law,
and that the Secretary had been invited to appear before the
Commission during the week, at which time lumina he would
probably submit such recommendations as he had decided upon.
One feature of the Act of May 30, 1908, which, in the
opinion of the Chairman, demanded early attention was the regulations governing the formation of nattonal currency asso.




Minutes

July 20.

3

ciations, the particular obipction which had arisen since the
passage of the Act being the inability of a bank to withdraw
from the association, on

forpihlly become a member.

The Chairman also called the attention of t, Commission
!e
to tl.43 immediate importance of giving some attenticn to the
subject of postal savings banks, on account, first, of legislation on that subject being on the calendar of the senate,
and, second, of its havinc; been recommended in both the Republican and Democratic national platforms.
This statement was followed

by an informal discussion

by the members of the commission of the general subject of
postal savings batics, and, at 12:30 p.n., the commission
adjourned to meet ac,ain at the call of the chairman.




PROCEEDINGS OF THE NATIONAL MONETARY COMMISSION.
Hotel Imperial,
Narragansett Pier, R.I„
July 21, 1908.

Pursuant to the call of the Chairman, the commission met
at 10 o'clock a.m.
There were present, in addition to the members who attended yesterday's session, Messrs. Burrows, Daniel, and
Vreeland.
In discussing the scope of the investigation to be undertaken by the Commission, the Chairman said that its inquiries

could be divided into the following general subjects:
1.

The money question, speaking in the broadest possible

sense, including noto isvisog in clir own and foreign ceuntrieei
by whom and under what conditions, and a great many kindred
questions.
2.

Banks, national, savings, state, and trust companies;




Minutes July 21.

2.

postal savings banks, agricultural banks, etc.
3.

Domestic and international exchanges.

4.

The relation of the Government to the volume of money

by reason of the collection, handling, and disbursement of
the revenues.

The immediate question before the Commission was, What
is the best way to make a careful study of the available material with reference to these questions.
In answer to an inquiry by Mr. Daniel, the Chairman stated that it was the consensus of opinion that, so far as

the

general Commission was concerned, following this meeting there
would he no other meeting until after the elections in November; but that, during the summer, the work of preparation
j
should go on by subcommittee by the individual members and
by the executive force of the Commission.
This statement of the Chairman was concurred in by the
Commission.
This preparation, in the opinion of the Chairman, should




Minutes July 21.

3.

consist of getting together literature and statistics on the
subjects above referred to and investigating the experienceS
of the principal commercial countries of the world, so that
when the Commission should assemble in the Fall, they would
have a library in Washington for their own use, which will
cover the essential questions which must come before the Commission for consideration.
The Chairman announced that the subcommittee which met
in New York in June took the responsibility of employing
Professor A. P. Andrew, who was at that time Assistant Pro.
fessor of Economics at Harvard, and was very strongly recommended to the Commission by President Eliot, of Harvard, and
others.
suggested
The Chairman further ztaand that the best way for the
Commission to obtain information in retard to foreign countries might be to employ an expert in each country - say
Great Britain, Scotland, Ireland, Canada, Germany, and France te write a history of the various phases of the development




Minutes July 21.

4.

of the present banking and money systems in these countries,
and also a synopsis of those systems as they are at present.
The Chairman also stated that he would like the Commission to authorize a small subcommittee to take up this work
of preparation, with a view to carrying it forward Axi;41- as
possible, the Commission to fix the scope of the inquiry as
to countries and subjects, and to leave to the subcommittee
the carrying out of the details.
At this point (12 o'clock meridian) the Commission took
a recess to 3 o'clock p.m.

When the Commission reconvened at 3 o'clock, the discussion of the question of obtaining information in foreign
countries was resumed.
it was finally decidsd that the inquiry sho41d embrace
the followin

countries: The United States, Canada, England,

Scotland, Ireland, France, Germany, Sweden, and Switterland.
The Chairman sugaested that perhaps Professor Sumner, of




Minutes July 21.

5.

Yale, would be the best man to write for the Commission, in
a condensed form, a history of banking and currency in the
United States.
The Chairrian stated that he would undertake, before the
next session of the Commission, to formulate some general
line of investigation to cover the scope of the inquiries relating to the countries referred to.
The Chairman suggested to the members of the Commission
whether, in their opinion, it was feasible, in carrying on
the work of investigation, to select certain questions for
examination, and to employ some trained economist, familiar
with the literature of currency, to take up these questions
and give to the Commission the arguments on both sides, together with full references and citations to the authorities.
Acting upon this suestior ? Mr. Weeks moved That the Chairman be authorized to appoint a committee of six, of which he shall be one, to enploy a person,
or persons, whose duty it shall be to prepare a compilation
of arguments and references for and against the establishment
of a central bank, and those who have given careful consider-




Minutes of July 21.

6.

ation to this subject be invited to submit their views upon
the same to the commission in writing.
This motion, after being seconded by Mr. Burgess, was
unanimously adopted.
In the discussion which

followed as to the men who would

be familiar with this subject, the following names were suggested: Messrs. Ridgely, Roberts, Fairchild, Joseph French
Johnson (of the New York University), Vanderlip,
and Dawes.
The Chairman stated that Professor Andrew had eready
begun the preparation of a bibliography on currency.
The Chairman further stated that it had been his intention to request Mt. Griffin, the Bibliographer of the Library
of Congress, to appear before the Commission at this meeting,

baskisk upon inquiry it was found that Mt. Griffin was abroad
at this time.

The Chairnan had hoped to secure the advice of

Mt. Griffin, in consultation with Professor Andrew, as to
what books not now in the Library of Congress it would be desirable to secure for the library of the Monetary Commission
.




Minutes of July 21.

7.

After some discussion of this question, MX. Burgess moved that the commission give to the Chairman authority, with
the assistance of Professor Andrew, to secure for the Commission a good working library of the best authorities on banking and currency in this and other countries.
MX. Hale seconded this motion, and it was unanimously
adopted.
The Chairman stated that at the meeting of the subcommittee in New York certain rooms had been selected for the
use of the Commission in the Senate Office Building, and that
the Secretary was directed to communiete with MX. Woods, the
Superintendent of the Capitol, with a view

of having these

rooms assigned to the Commission.
The Building commission, in charge of the Senate Office
Building, advised MX. Woods that it had no authority, under
the law, to assign any rooms in this building, their duties
being limited to the construction of the building.
The chairman suggested that the Committee on Finance, as




Minutes of July 21.

8.

one of the leading committees of the Senate, would be entitled to rooms in the Senate Office Building for hearings and
for a library, and that these rooms, when secured, could be
used temporarily also by the Monetary Commission until suitable rooms could be assigned by Congress for the use of the
Commission.
Mr. Overstret then moved that the whole question of securing suitable rooms in Washington for the use of the Monetary Commission, either in the Senate Office Building or elsewhere, be delegated to the Chairman, with authority to act on
behalf of the Commission.
This motion was seconded and adopted.
The Commission then, at 5 o'clock p.m., adjourned until
Wednesday, July 22, 1908, at 10 o'clock a.m.




PROCEEDINGS OF THE NATIONAL MONETARY COMMISSION.
Hotel Imperial,
Narragansett Pier, R.I.,
July 22, 1908.

The commission was called to order at 10 a.m.
The chairman stated that he, together with Mr. Vreeland
and Mr. Overstreet, were ready to present a general outline
of the plan for obtaining information in regard

to the bank-

ing and currency systems of the leading commercial nations.
tie thereupon presented the following:
The general purpose of the Commission
being to make an exhaustive and comprehensive inquiry into
the varbus banking and currency systems which are in operation in the leading commercial nations of the world, competent persons should be employed in each of such countries to
prepare for the information of the Commission concise, accurate histories of the development of existing systems in such
countries, which should include (171 important historical and
statistical information relative to the same;

such informa-

tion in regard to these various countries to follow, as far
as possible, similar general lines, in order that the results
may be comparable.




Minutes of July 22.

2.

Mk. Hale moved that this plan be adopted, which motion
was seconded and unanimously agreed to.
Mr. Overstreet then moved that a subcommittee be appointed by the Chairman, of which subcommittee the Chairman of the
Commission shall be the Chairman, by atthorized to visit such
European capitals as may be deemed necessary and practicable
to make proper arrangements for the employment of the competent persons just authorized, and institute such investigations
in such countries as may appear of advantage for the proper
work of the Commission.
This motion was seconded and agreed to.
The Chairman stated that in addition to the questions
which he had mentioned at a previous session as being proper
subjects of investigation by the Comuission, there were the
following:
1. The question of the guarant*(of bank deposits.
In counection with this question should be considered the
safety-fund system in New York, the free-banking system of




3.

Minutes of July 22.
New York and the Suffolk system of Massachusetts.

Mr.

Burgess

stated that in the July number of Scrib-

ner's Magazine there was an article by Mr. Laughlin opposing
the guaranty of bank deposits.
It was also stated that Mr. ForGan, of Chicago, was perhaps a good man to write in the negative on this question.
2.

State banking laws and statistics.
In this connection the Chairman stated that he had

already caused letters to be sent to the bank

examiners of

the various states requesting copies of the present State
laws on the subject of banking.
The question of holding hearings in different parts of
the United States at some future time was discussed by the
members of the Commission.

It was suggested by one member

that perhaps this work could be done through subcommittees,
each subcommittee being assigned a certain section of the
country in which to hold hearings.

The chairman was of the

opinion, however, that it would have a better effect on the




Minutes of July 22.

4.

different localities visited if the full Commission should
hold the hearings, and the discussion which followed developed this to be the general opinion of the Commission.
In suggesting amendments to the administrative features
of the National Banking Act, the Chairman said there was one
change

which certainly ought to be made at the first oppor-

tunity, namely, that national bank examiners ought to be compensated by proper salaries paid by the National Government
instead of by fees paid by the banks which they examined;
that they should be given more power than they now possess;
and
men.

that an endeavor should be made to get a better class of
It was suggested that bank examiners should have special

authority to examine banks in the national currency associations authorized by the Act of May 30, 1906.
It was also suggested that it might be wise to appoint a
subcommittee Which would take up this question between now ane
the next meeting ofthe full Commission, and perhaps consider
other changes in the administrative features of the National




Minutes of July 22.

5.

Banking Law.
At this point (11:45 a.m.) the commission took a recess
until 3 o'clock p.m.
When the commission reconvened at 3 o'clock, the chairman
suggested that as they were considering the several changes
in the administrative features of the National Banking Act,
the commission might adjourn until 10 o'clock tomorrow morning,when the Secretary of the Treasury would appear before
them on this subject.
The suggestion was adopted, and thereupon the commission
adjourned to Thursday, July 23, 1908, at 10 a.m.




PROCEEDINGS OF WE NATIONAL MONETARY COMMISSION.
Hotel Imperial,
Narragansett Pier, R.I.,
July 23, 1908.

The commission was called to order at 10 a.m.
The Secretary of the Treasury, accompanied by Assistant
Secretary Coolidge, appeared before the Commission.
The Secretary of the Treasury addressed the Commission
in regard to the progress which had been made by his Department in carrying out the Act of May 30, 1908, amending the
National Banking Laws, and discussed certain deiiirable amendments.
At 12 o'clock meridian, the Commission took a recess until 2:30 p.m.

',nun 414.13 Commission conyAnarl At

2:30 p.m., the

qanratary

of the Treasury resumed.
He laid before the Commission various recoamendations

for amendments to the National Banking Laws.




2.

Minutes of July 23.
Copies of the statements and recoinmendations of the

Secretary will be attached to these minutes as a part of the
proceedings.
/

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When the Secretary concluded, Mk. Vreeland, the Vice
Chairman of the commission, took the chair durinz the temporary absence of the chairman.
Mk. Weeks moved that a subcommittee be appointed by the
Chair to consider changes in the National Banking Laws, and
especially those sug6ested by the Secretary of the Treasury,
and to report its conclusions to the Commissicn at

its next

meeting.
Before the discussion of this motion was concluded, the
Commission took a recess until 8:30 p.m.

At 8:30 p.n. the Commission reconvened, with Senator Aldrich in the chair.
After some further discussion, the motion of Mk. Weeks
was agreed to, and the Chair appointed the following subcom-




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Minutes of July 23.
mittee:

3.

Senators Allison, Burrows, Teller, Money, and Bailey

and Reprosentatives Weeks, Bonynge, Smith, Burgess, and Pujo.
Upon motion of Senator Honey, at 9:30 p.m., the Commis&Joh took a final adjournment, giving to the ChairAan the authority to determine the time and place of next meeting.




Hotel Imperial,
Narragansett Pier, R.I.,
July 25, 1908.

At an infornal conference of such members of the commistkilowt LittAvto 14-AG
Bien as were still present at Narragansett Pier, the following
statement for the press was submitted by the chairman and
agreed to:




The Commission, during their sessions have been engaged
in the discussion of the various phases of the important work
assigned to them by the Act of May 30, 1908.

A large portion

of the time has been taken up in considering plans for securing information upon which their ultimate report to Congress
will be based.
It was deemed of the utmost importance that steps be taken to secure a thorough and, as near as possible, exhaustive
examination of the monetary and banking systems of the leading
commercial nations.

Preparation for this work was entrusted

to a subcommittee consisting of Senators Aldrich, Hale, Knout
and Daniel and Representatives Vreeland, Overstreet, Burton,
and Padgett.
This

committee will seek to secure from competent and

authoritative sources all available historical and statistical data with reference to the currency and banking experience
of Great Britain, Germany, and Prance.
special examination of the Scotch,

They will also make

Canadian, and Swedish sys-

tems and the changes which have recently teen adopted in
Switzerland.
It is the intention of

the full Commission to visit Can-

ada at an early day for the purpose of making a special examination into the Canadian system.
In the prosecution of their work, the subcommittee will
go abroad in the near future, sailing on the Kronprinzessin
Coeitie on the 4th of August.




Another subcommittee, consisting of Senators Allison,
Burrows, Teller, Money, and Bailey and Representatives Weeks,
Bonynge, Smith, Burgess, and Pujo, will take up for immediate
eonsideration the question of necessary amendments to the administrative features of our national banking laws.

Secretary

of the Treasury Cortelyou was in conference with the Commission with reference to the character of these amendments, and
the subcommittee last mentioned expect to be able to report
their recommendations to a meeting of the full

COMMiSSIOA

to

be held in Washington on November 10.
The action of the Commission with reference to all questions has been harmonious and unanimous.




July 25.

4.

The questUn of the next .leeting of the full Commission
was discussed, and it was the opinion of all those present
that the Chairman should call the next meeting of the Commission at Washington, on Tuesday, November 10, 1908.




MINUT1S OF THE PROCEEDINGS OF TH1 S1JBCOMMITTE1 ON AMENDMINTS
TO TH1 ADMINISTRATIV1 FEATURMS OF THE NATIONAL URIC ACT.

Hotel Imperial,
Narragansett Pier, R.I.,
July 25, 1908.

The members of the subcommittee are Senators Allison,
Burrows, Teller, Money, and Bailey and Representatives Weeks,
Bonynge, Smith, Burgess, and Pujo.
Present at the meeting: Messrs. Burrows, Teller, Weeks,
Bonynge, Smith, Burgess, and Pujo.
The

committee organized by electing Senator Allison

Chairman and Representative Weeks Vice Chairman.
The committee took up the consideration of the suggestions made by the Secretary of the Treasury relative to the
changes in the national bank laws, and determined to request
the Secretary to complete the suggestions Which he had made
as he had requested opportunity to do - and to submit the
revised statements to the

committee as soon as possible; but,

if possible, as early as August 15.
The committee determined to propound a list of questions
to national bankers, asking for their views on eertain desired
changes in the national bank laws; and a committee, consisting
of the Vice Chairman, Senator Teller, Representatives Bonynge,
and Burgess were appointed to attend the meeting of the American Bankers' Assoeiation, to be held at Colorado Springs the
week of September 27.




Minutes of July 25.

2.

After replies are received and compiled from the national bankers to the questions submitted, it is proposed that the
committee give public hearings

in some of the larger cities,

to add to its information on these subjects.
At this point the subcommittee adjourned, subject to the
call of the Chairman.




PROCEEDINGS OF A SUBCOMMITTEE OF THE NATIONAL MONETARY COMMISSION, WHICH WAS APPOINTED TO INVESTIGATE THE BANKING AND
CURRENCY SYSTEMS OF FOREIGN COUNTRIES.

A subcommittee of the National Monetary Commission,
consisting of Senators Aldrich (Chairman) Hale, and Daniel,
and Representatives Vreeland, Overstreet, and Padgett,
sailed from New York on the North German Lloyd Steamer Kronprinzessin Cecile on the 4th of August, 1908 1 in pursuance
of the instructions of the full Commission, at a meeting
at Na-raganeett Pier, R.T., in July.
The purposes of this subcommiLtee are stated in an interview given to the Associated Press by the Chairman in
New York just before sailing, which is as follows:
more complete and accurate information than
To obtain
is now available with reference to the monetary and banking
system of the leading commercial nations, is the principal
purpose of the subcommittee of the National Monetary Commission who are leaving today for London. The subcommittee also
intend to make a thorough examination into the methods in
use for the collection and distribution of the public revenues
in each of the leading countries of Europe. The Secretary
of the Treasury has detailed Mr. J. O. Manson, Chief of the
Division of Accounts of Issue and Redemption of the Treasurer's Office, to assist the Committee in this work.
The active work of the Commission this summer will be
carried on by the subcommittee who are going abroad, a'.d by
is the
another subcommittee, of which Representative Weeks
g
acting hairman, who are now engaged in considerin amend
nal banking
ments to the administrative features of the natio
laws.
This work is but preliminary to the report the Commisary
sion are 1-quired to make to Congress of a complete monet
expected
not
and banking system for the country. It was
of May 30th, 1908,
that the legislative provisions of the act
adopted with the
would be final or permanent. They were
ed, ofIroviding
single purpose, which has been accomplish
conditions similar to
against the recurrence of destructive
October last. This
those from which the counti%. suffered in
in time by legislation
act will undoubtedly be superseded ary system.
establishing a comprehensive monet




.
2

The subcommittee held daily meetings on board the steamer, from 11 a.m. to 12:30 p.m., from August 5 to August 9,
inclusive, to consider the scope of their inquiries abroad
and

the methods by which they could best obtain the infor-

mation desired.
The subcommittee reached London on the 10th of August,
and proceeded at once to the Hotel Metropole, where headquarters had been engaged for them.

They were joined in London

by Representative Burton, a member of the subcommittee, who
had proceded to London
The meetings

in advance of the other members.
held in London from August 11 to Aug-

ust 20, inclusive were attended by all the members of the
subcommittee which had been named.
The subcommittee agreed that the best way to obtain the
desired information in regard to the banking and currency
system was to personally interview a number of leading bankers and financiers of London.

By invitation of the chairman,

the following gentlemen appeared before the subcommittee on
the dates indicated:

Aug.12.

Mr.R.W.Whalley,G... 'val 'ananr, Parrs

nk,Ltd.London.

Mr.Christophfr.
Prof. ji.nry
Aug.13.

R. Nugcnt,Mgr., Union Discount Co. London.
70xwe11,

Mr. 17
,(,

t-cd H. Holden t .P.

ng Director, London City

Mr.R.T.KainL:3,C(n1.11gr.,Nationil
.orre ‘ItirJ'ay,K.C.B.,Pcr-ianent
Sir (.4
Aug.14.

Mr.Cco:Tc

Aug.15.

6.13h

V'
i•
Mr. W.
-T,

.nk of Fnglar_d.
ecrctary to the Treasury.

ofiVie Statist", Lon, ,on.
:
Pa,v1.8

.* -2n1.7"tr.
1.0.dIcton

Covnor cy" t•

.'.ank or 7ng1i-- .nd.
;

Prt'dcrick Hit 'ck on,

Jr.Alfred C. Cole,

)

k of Englund.

EdYa4.'d C. Grcnfc11
Auc.17.

; .u..d H.. Holden,
;
.
.c.r.11.....ScarchtDiecount Offic(!r, Bunk of Ingl
'.P.Tr.Edward Clifton 13.covii, LontA-m. and
Wcstminister .Rnk, Ltd.

Aug.16.

r:).t11- ard 17arer,Barkng

ros. & Co.,London.

..;:.C.S.A, Cis,Mgr.in London for Hong Fong
Banking Corporation.
Aug.19.

rThanghai

Ur.Prederick Huth J'tokant
Alfrc:d C. Cole
P.de
-1(;13

Aug.20




Mr.T. on

Co.'? Rue Scribe, Pails,
H. Simpson,!.W.in London, :41.nk of Livc:rpool,
leleff, :anarinr, lAiector,Swins BankTerein,London

Mr. L. JosfAll, SUb-Marrtrer.




At the opening of the meetings, the Chairman stated to
these gentlemen that any information which they should give
would be considered confidential by the members of the subcommittee.

Therefore, no notes were taken by the Secretary

of the Commission of these interviews, except in the instance
of the statement of Mr. Leon Rueff, Managing

Director for

London of the Swiss Bankverein, whose statement will be made
a part of these minutes.
During the sessions of the subcommittee in London, the
following outline of information to be obtained for the Commission in regard to the banking and currency system of England was adopted, and it was agreed that similar information, as far as possible, should be obtained in France and
Germany.

5.
4......1......o.,1,........

$0.4

................
A.
4
1
'11°1111"

TVC7

9?

FSOLAND

STAYEIRTTS,

To ici de .
;Joth Is' ue and Bankirit

cItrt-ti:nts, but. 1,
,
,Lated

separatel, for ]..rid since 1341, Trouped in annual am'; decenqial
averares, but lat tweny years wcekly.
This should always state in eac

case, percentave of recurves

(volt and note) in bankinE d, .artrricnt to Lotal deposit liahilities.
.
Azi:1 amount of ctivdcind

:0I7T

Jo 11

7
:tock
c." •

A 'rr•

:anks, 'Tercllant Bankers, and

B:)..nks in Scotlarui an. ire1nd.
r.1

Mese sho.ild be 2tated separately, to include
a

London Clt!arinr

6

Othcr Joint fltocV Ban

C

-catch

.t.Fncland arld Wales

ilnks

• Iriksh '.anks
e
f

Private Banks and :crchant Bankers wilo

ibc,)orte

ortina.rid Colonial Banli doing busine.. in En land, us
to their 'nrlieh bu5inesr,4

tate-isnts of Joint rtock and other Banl-s and Bankers should
include, ox far au possible, tc following:




a

Tho narie of the bank or banking house
subscribed capital

• Paid up c4pitu1 aid reserve; fund




6.

d

each on had and at :.'unk of Ene14nd

e

1 (%rcen
1

f

2

Cash at e:al .41d flort notir,:e

. of ZAMC to depooit liabilities

• Pi

mA:%, to d'oait liabilitiee

inveutments, GovY

h

Pf.:rtntace of same to en.Hit.a.
J

De:posits

k

Bills discounted

1

LC)'TL

rwld

d advancs
,4*

P fce.n

c,
tics

1.-Aservc f .nd

Dividndc

ri

CO'.T ,90T,I

't'n

PT A

trN,) •

•••••UATAILY AL, ALL

,

/ank of 'Ilrland
P

bank 3 in Rn 1.nd a-!d
London Clearinc

:ars

4C1

Oth‘f Joint :""tcmk IlAnka in Fnvi,...nd txxid Tales
c

'cotat Bankt-,
irich Lanka
7. iv.4tw banks and lerchant "Ankero who r;ake repofts
'oreign aid Colonial 1;TAn- doing bitrincell in EnrLtnd o aL
Po theAr nnt
-11210 burdno:r.
To t.

Unit.11 Kingdon.
";Artwc

a

to be givn for tht folLo

.:untj l of banks

c

'7.
of branches
of inhal)ita-tt:; Co each banl.: tud branch
d
o

4;c.ribcci capital
j it:a

?aid ul

.ft

r

3

rv- run,0

"r-w,
Atis
c
h

1.

Csts/I on hzxnd and at
Pcrcent
of t3;.t.--it."

of Encl , nd
to (1(..0:31t, i1ab11Iiuz

on, At etll •nd nhJ:t notict:
Pr c, nta.r; of sAns to dcpo! it
in :cctifitir4a

Inv,!sttlent

incounts, loan
t•

1.

(

%

and advancct=

.;piti

0.71

.0 0`"J•r.

re'r

1.1 1)111—

-..xportt; mn[ I ;.,ortz.. of Gold

Great Britain to and from v,trioue countrins, for
annui.L1 4.4nd dccennL.11
rioc43 since lzi44
r-celoto for tcn

ic"k1y nhipments

'onthL, for thirtz/ years

aahn,

07

1.1T . AIONAL

ilT•TAITCV.

totf!d ratcle crIntcnttiond Exchanrn to

samme tile az abovf

Iictwecn




toncon and Jew York

New York and Parim

to :dOn and ?axis

new York and 11 ain

Londen

clin

Paris 4n- Berlin

4

8.
ESTMAT XD

GOLD

SUP?tY

1'1'7(

t.•

Total
Pr capita
Pr=lortion of cold cipply to totAl note ir:ut's
Pecentarc or cold to ai.::crecm.tv or not

.IUOU 7T

OF

GOLD

COI:

AD

BULT,IOU

UNIT
to ti

AID

thpoi

Srr,vx

co 1

ru

'HE

Y7I1GDO
t.Amount in %1 c

Inds of the

people and in the baltha.

A. :.taAc.tico tliat are awAilW
%;

U.%

itse of ba.W:s nnt g and coin 0.ncl Ill cr LAA in-

ntruncnt:,




that will eho'

G!J'A.;';.

etc.

..1AT;-,11

Thaat- of
i4

in buninn

OP

TA; BANY

an!: of EnLli,ne

Av ra

ransac t ir,nz•

03P

r:1)m 14144.
and decennial prioda

1 ...Ism 46110: :;S.nit-4)-a r at.lc-8 for
IlvA)
Ct

FNCLAN16

ac`i ,

of chang &I each year

*Por twt-n%y : .r3 tablcs n ovinc date,
0
,11 ounres.

cha

r

r of

9.
5

.1
D

a

in London

b

Colin t,1-4,

OTH

•

.
,

cnke of I:cot:1.14nd
3tcn1lane:

d

ro'zinc

Idix kit

aciri
1,-):=-41f
: I0 ti .1, :tbo vc

fo:r

TInacitt statt:6

.0 in4

caude
bill

itatc

a

i0

c16:

autet, f%*
iiatcn fol.* :lowly on cJill

C

ft: .1,tivanGes i:Jr loans to corArs

d

“Jr ovrdr%.

iztt

T.ET

ThrbirkW.

de;oi




cAiCrir,r

r.ix nonthcs

di cnt hour;t4s, An p*b.11hi in

Ot:Ar%ir0.40
"

7

pAID

).AT7,,f!,

ri.nd tratiebt11, thr,_ , four• tn

r ..tes of banks 6..n

EconomilA or

(cas:1

ON D. old t

7 .

by

City Drutkj
o

c

141.nks in rcotli..:n(1

Count.r;„

e

13an1c o 1- ;

tnd

10.

TOTE
Anal and dccctnnial averacct-l; zinee 164.
twenty :y0(.:xs, 4.nct :iont>jy ntaLeen._:
a

Other Banks of 12 Lie in

C

ten , oars
j

B. ii,;.nk of En 1:..md

b

t ateNents for
.
.

Banks in r,Lotland.

ngland and Wale

Bank& in I ....1%.1d
A;:lount -f I

(LOWTH

OV

p

Qapita in .1.ch case.

POPULATIT7

BUI - 7fl

.71

A 1. rre-f
.

AND

CO'

For annu2. and ckcennial rt. riod1;$ for 2 1a.nd, rcotland a
/1




ir1and,

as shown
a

hy for.
in co ,1-0.ce
Kxports
Imports!

bij_i.rleunt of bank cr4pit1
u
•

ct rtAserve fund

Brunk deposits
Savinvs and tructes bank dt:posits
Clearinr houEe

rc.i.nsuction

r

Any



Amount of public rcvenues

h

klount of icon

v41ab1.1,4i3tics soNinu inou; triad r7rowth
.

11; stcrA.

, voduction

Tranortation
incIadinE crosl; carrAn!: of
-;
rT.ilaays t a:Id numb r of tow, of freirl, carA, one
r",i1e
j

C7roath in .0er,1t,.
otherwise

All !,11c: above eO1

sllown 1):, inco-E
)

how ulso

•is

trtx 1- turnr. and

vrowth.

11.
Ii

CONID

SED

AD

COI1BI1171)

iio'inca'a;H:A.rative tableo of vrowti:

(.2,
wealth, biL,incs;.!, and in cur. {:nc; (not
c. Iris).




tr cp1ta in popul
i-ld

12.
1
NOTES.

BANK
Ha Li
note i

JL.11 fc — 1!!Ice to
-tles under

1(.cislion of 1844 an(', 1645 b.AJ1 satisfaCtortt

'Crith f:Gspcct to not
to L.t_;nk

1ues,z)._„, any modificaLions o.

ct5 ;,u7rosted by leading authorities,

..lendments
so,7::hat

qature of -t.6 proposals?
1 subAantial
"at

fo, emercencies, o
an

a

i

we in AmeaAma call

lasi.city" in currency to answer business de.iands?

Is there an, iiclina.ion
i

,

tLnd(;ncj

Lo
o

0 :i(opt t'scl German system of taxed
mo(ifi_ tion o

itT

dopt in Entaand the Scotch

yHm

existcd prior to 1845?
Is

re any contnlion in "oavking or (,(,onomic

is necear

restore the

1.2)t of invue co

unk or Ingl,nd, ,0 citable V'em ,0
bo, owors or

- nka, c)

'1t it

cr than the

adecoafue facili.ies to

,o meet legitimate buoine;.

words, have the

s

de-tands.

In Ot; .r

anks which have be' n 6, L:iw.d of the riCit of

ue suffered., or have the co nunitios in .1lich ti. ;/ arc located
c.
suffered, on aLcount of the ueprivation, z%nd is
either in

L. public interest, or

restoration or
U1IOflLi:ion




o

here an

(;nefit t , banks, Po

L of i:ue uo

Lly, or undo; limi„ations?

p,oposition
the

nkso citber cene- ally and
r

r..art2Tao
t1,141..kAl

„
.„

apu

4
94T

.4 .
11)T1S44481?

ueri min emu:

p

.1 41,
0

4.4r

i

'4 4;
sieul
)
e

Ireti

1:11aa"7.7?

I

r

illitroin
Tirgesi
traT
41
41t$

n ;au..
ol,; .1LI
1
;

a;

Uri

ealrt

;din '

011 paasirti1

:*

tint*

„;-

ia

tit

5,

t

A

)
1

.1

,tr,, JO An
11/1

s'
0

Ul;

"N
•

ot: ,
(1 0
.

0

irk! I ;,
0

trNIZ,
o

TAT

J

slug 1;irt .

,

0




l'utta

44o.
;Likf

U4114S 41.2

.9ft
sir+

0°4 *,L tl
it

iusav ,JItzt *fug j; cp. 4
11sitia

u

r.,

£

14.

1
BANKS.
What Lz.rc

a

CisA.nctiv(- fancions of

Bank of Englctnd
Joint stock banks
Private banks and mercllant

rikers

Postal and trustee sr other savinr7s
Discount houses?

State the laws Wlich rov,

a

By legislation, or
By cusLam p uro%,ing out

What
a

n each cla..s as evidenced

understo6d unwriten laws.

t. u 12:zovisions of
-

custom uov. :ming

Ocranization
Govermic:nt an6 cont..ol

C

AJA to c;.:.pi1; . .1 and roservc fund

d

As to liabilities
hequirements, i

Aockholders l o .l'ficers and directors

any, foL.

government or oLer supervision,

ins)cction, 0J: examination

f




Nature and extent of statements or .eturn, public or private,
if any l required

publised

15.
2
BANKS-con 'fluted.
Whc:,t; is the charactul. Of tile business done by

c1a;i:-3e:5 of
a

nks under the J'ellowing different conditions:

In rural comlunities
In LIdustri 1 LI

0

11() various

'inancial ctntres, like

ancht.

In co.ecial c(,ntres, like Livirpool
I

tIle rreat international exchanr, centre or' Lon on
To includc in each case
n.Lut re of

1
2

G
a

ral chafact

businest; done
of

Dcpotlits
AcGount
With .

3

current
usual rate of interest,if any pi
-id, on each class.

Gnneral
a

cl)a . c(

of

Bills discounted
Loans
Advances to custolGrs or oath credits

with the usual ra

o

int(

st on each as com.ed .ith the bank rato..

Are L (:rc orranizations 0: a';:olations of banks otHef Lan
clearing-houses,in existance,a,)0. 1 if




Sta

o

number and character o'

ic

cre uHaracLr?
or E,nizations.




16.

The subconmittee concluded its sesAons in London on
the 21st day of August.

Senator Hale and Representative

Burton sailed for the United States on the day following.
A portion of the subcommittee, consisting of Senator Daniel
and Representatives Vreeland and Overstreet tleft London on
the morning of the 22nd, and arrived in Paris on the evening
of that day.

Senator Aldrich and Mr. Padgett remained in

London to continue investigations independently of the other
members of the subcommittee.
In Paris, Senator Daniel and Representatives Vreeland
and Overstreet interviewed

M. Georges Pallain, Governor of

the Bank of France, on August 24, and Baron Brincard, Manager of The Credit Lyonnais, on August 25.
interviews are as follows:

The notes of these


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102