Neutering won't solve the problem on it's own, but it's good for your little guy for many reasons. Not the least of which he'll be less likely to attempt escape when there is a dog in heat in the area. THAT can be problematic! Plus, they are less likely to hump, mark, can't develop testicular cancer, won't impregnate the neighbors dog, etc....
check out this link:
http://www.doghause.com/spay.asp for more info
Also, do a search on this site and you'll find more info.
Belly bands work great, especially when visiting. Tiger's mom makes great ones that are not expensive.
Any male dog I ever had has been neutered, and it didn't seem to change their personality at all. Now, of course, it was always done when they were pups, but Mr. Bailey is young, right?