The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-10-07
nv Q Arthur wniiamsl

Washington. October 4 iSiau Correspond
chcc1- Next 10 the coal strike conference
the chef opic Ia Washington this week
has been the now financial plan Recently
announced Dy Secretary ~ The Treasury
shan That the secretary's radical move
staishicncd QUO tho Wall street tanalc Is
obvious but whether h was legal and
whether u VIII result beneficial 10 the neo
pie are open, questions WITH a great many
wen Informed persons
The announcement " the plan was greeted
with something akin TO CONSERVATION hero
- Washington. Legal experts said that the
secretary had no warrant under existing
laws 10 abolish bank reserves or to accept
any security other thhn government bonds
for circulation. They pointed ont further
that Il was not the duty Of the secretary
TO eonstruo laws relative to National banks.
They alleged that the plan would not afford
permanent relief and that It's application
would have the result OF causing congress
to take such action as would hereafter ef.
fectually prevent construction Of the laws
similar to that Of Secretary shaw.
Secretary Gage and some Of his prede.
cessors at various times considered many
plans for the assistance OF the National
banks and their Endorsement was never
given to any such radical movement as that
Of the present secretary Inasmuch as some
OF the men who preceded Mr.. Shaw were
financial experts, which he is not, their
failure 20 take action In line with his re-
cent announcement is regarded as further
indication that his position In the prem ses
was not legal aud that his plan was II
doubtful utility
1t IS significant that many Of the scctc-
tnry's subordlnntcs in the treasury depart
lnent did not agree with him. While Mr.
Shaw, IN ono or more VI the statements
given out during the early part OF the
week, sud specifically that the views Of
the comptroller Of the currency were ia
complete accord with his own, It is he.
leyed here that some serious differences nf
opinion may yet result between the secrc.
tary' ma Mr. Ridseiy. Tho latter IS said
to agree with Mr.. Shaw to the extent Of
believing that there was DO just ground
to require banks TO maintain reserve
against deposits Of public money held NY
them, but he ala not subscribe TO the sec.
retary's theory that either the secretary
er the comptroller had the power to exempt
the banks from that requirement, especial
" since congress had several times re
fused to grant such concession. Only
the comptroller is vested with authority
to pass on such questions
As before stated, the matter Of exempt
ing National banks from reserve require.
ments has been considered by many secre-
tarles Of the treasury and comptrolers o.
tine currency. Comptroller Threnhom and
others recommended that congress change
the law IN order that the exemptions may
be legalized, but up 10 the present time
the lawmakers have either failed or refused
TO take any such action. As the law now
reads reserve must be maintained on "all
deposits" Heretofore this law has nj
ways been strictly observed. notwithstand.
ing the fact that many disturbances worse
than the one In evidence the early part Of
this week have had 10 be dealt with by
treasury department officials In the past.
~
The law relating to government dcposi.
taries says;
THE secretary Of tho treasury shall re-
quirc the associations tbnnks) thus dcsig.
mated 20 give security by the deposit OF
United states bonds AND otherwise"
1t win no noted that the word preceding
otherwise IS and Were 1t "or' 1t IS
thought to he plain that securities other
than government bonds would be per
mlsslbc Had the men who framed
sSessssSssso0sssssSsosssOSOS,
necessarily incident thereto would deter
most cousumptlyes from starting. while
few would ever I've to reach their lestlul.
tlon II Alkuli Eye could he Induced tn
rontrIbute SOME Of his extra booze TO tone
and keen up the spirits ~ the health-seck-
ers. PerIys pluu might work. How about
itD-Tn portg Chronicle.