Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-12-05
V[N CURRENCY Plan
New York Chamber of Com
MERGE Committee Admires
Change in the Law
lNHARMoNY WITH sHAW's IDEAS
A Change in Rules Regarding circua-
ton, Interest on Deposits and Gus
toms Advocated-specific Provision
for Deposit of Public Funds Against
Municipal and Other Securities.

New York, Dec. 5.-The report of the
finance committee of the chamber OF
commerce on Mr.. Schiff's resolution te
suggest way for providing against a
severe stringency in the local money
market, which has been awaited with
much curiosity, was submitted to the
chamber today. 1t was signed by all
the members of the committee, except
August Belmont.
The suggestions of the committee are
not novel or radical, but they follow
much on the lines of Secretary ShaW's
suggestions in his annual report.
Briefly summed up, the committee
suggests: Q) That the banks be per
mitted to retire circulation at VIII W
that new bank circulation should res
on the commercial and industrial cred
it's of the banks; co that the silver ooi-
lar he made redeemable in gold; t4)
that provision be made for the deposl'
with the banks of any public moneys IN
tha treasury. including receipts of Gus
toms; co that interest at per cent pe
charged on such deposits.
The suggestion Of taxed emergency
currency, lately Endorsed by Controiief
Ridgely, is disapproved under exlstns
circumstances. ar.
THE report of the committee said: III
appears to your committee tnat' III
view of the action taken by the secre-
tarv of the treasury during the rscent
severe pressure of money conditions
the existing statute, the language from
which appears ambiguous and unael
which 1T is not entirely clear 10 VIVA.
extent the secretary of the treasury
may use discretion in accepting othef
security than United States BONDS TOT
deposits of public moneys, should De
amended so as to expressly authorize
the acceptance of state and municipal
bonds within certain limitations, as Sc
curity for deposits, and your committee
further suggests that in order to make
the funds of the government, Wnlch
after all, are the funds OF the peopie'
available to larger degree tnan Is now
the case. for the needs OF the commerce
and Industry Of the country lnsteao "
withdrawing these funds from the
channels of trade, the law be so amend
ad as To authorize the secretary OF the
treasury to deposit, in his d1scretioh'
apv public funds in the national banks
against such security as the law may
authorize except the gold reserve, held
for the redemption of legal tender notes.
and such working balance Wnlch ne
sba11 deem it advisable to MAINTAIN.
Of this be done, and the secretary OF
tho treasury be under an amended sta-
tute directed to exact upon pubic Iuhos
denosited in the national banks, except
where such funds are secured by tne
depostt of United States bonds, interest
at a rate not less than per cent PEI
annum the effect would be that IN
times of monetary pressure. such as we
have frequently and only recently
nassed thru, the entire money supply
in the country, inclusive OF the pupiie
funds. could be made available.
'If the depository banks are caiied
upon to pay interest on the pupllc
funds they obtain on deposit TINS VIII
result in the return Of these funds 70
the treasury when no longer required,
and when these funds, therefore, can
NO longer be used by the banks to adj
vantage.
..Thus a constant flow, moving with
the needs of the money market from
and into the treasury, will be estao-
lished, which will go far to remedy,
If not to make impossible, such con-
ditions as have recently and frequent
ly heretofore existed, and under which
interest has advanced to abnormal
rates. to the serious detriment of the
legitimate trade of the country.
"As to the proposition so often and
sometimes persistently made, for spe-
cial emergency currency, your commit
tee is of the opinion that this may pos
sibly have legitimate place in prop
erly safeguarded general system of
credit currency; standing by itself it
would, when awaited of, only Increase
the distrust and difficulties to allay
which, ostensibly, would be its pur-
pose.
1--WE must come right down to the
that the only thing which
can be done to make our financial sys-
tenn safe and sound and solid is to get
down to one legal tender, and that is
gold, and then to bank upon currency
circulation enlarged beyond the pres
ent authorized issues of the national
banks, and based upon the credit Of the
legitimate trade Of the country and
safeguarded under the law"
Baltimore-President Baker, of the