The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-07-16
TO INCREASE
CURRENCY
Plan Discussed by Aldrlch
and Associates.
FORMER OPPOSES BILL
Senator Asoni is Friendly to Suggested
Leg;slation--Mr. Cannon, Who Will
Be Next Speaker Of House,
Dead Againstit.
FORMER OPPOSES BILL
,sneclal to The Times-Dispatch.)

Especial to Tho Times-D lspatch)
WASHINGTON, July 15.-For the pur-
pose OF giving a proper basis for dis
CUSTOM the details of one Of the plans
OF monetary reform considered by Sena-
ter Aldrlch and his Republican col
leagues on the Senate Finance Commit
tee at their recent conference ut Hot
Springs, Va, may be stated with au-
thoritative precision. 1t may also be
said that the plan came to the COM
fnittee we'll recommended and, although
Senator Aldrich has declared against
~ as not an available expedient at this
time. he admits that II It could be cs-
tabllshed and maintained without! change.
there would be no objection 10 II. Sena-
tor Allison. Of the committed is decidedly
more friendly toward the plan than his
associates Representative Cannon. the
Speaker to be, Ia against the plan, and
has set his face as hard against 1t as the
flint-like countenance he has turned to-
ward the Aldrlch bill Of last session
1t will readily be seen, then, that. al
though the expedent has substantial,
expert backing. its chances are MT too
bright by reason of the lack OF support
OF Senator Aldrlch. chairman OF the
Senate Finance Committee. and the de-
c.ded opposition Of MIR Cannon. who has
asserted himself positively against any
form OF legislative relief to the finances
of the country.
PLAN is SIMPLE.
The plan seems a simple one. 1t Is
proposed to authorize the Issuance OF
additional currency" by national banks.
UP to 70 per cent OF the amount of their
capital. On this the government Would
place a tax OF, say 5 per cent. per In
rf lie fay hap kc
only call for the additional currency Ii.
mes of greatest stringency. That Is.
interest on loans would have 70 be hIgha--
than per cent. to induce bank 10 go
4 to the expense OF issuing additional cur
rency. The instant interest rates dropped
below per cent, this currency would
retire automatically.
1t Will thus be seen that the success
or failure OF the plan depends upon the
I fixing OF the tax. Those who advocate
The plan, and have made this a point Of
special. study, say that 5 per cert should
be the rate. When interest is hlsher than
that. the country needs more circulation.
When 1t is less than 8 per cent. contrac-
e ton of the circulation would be benefit
cial.
:, TWO. HUNDRED MILLION.
The maximum amount of additional
be that psn would %1d pc be- msds bic
sate e Of ,Pe Of hs Sanfs
Of the country. This sum, 1t Is believed,
would meet any emergency that might
Banks awaiting themselves Of this addi-
tional circulation would. not be required
to na h any seeax thets the
which Is considered ample. would be. first
the bank |, Itself: second; the fund created
by the accumulation, OF the. 5 ner cent:
tax Experts say this In itself would
be more than ample as an insurance
having this additional currency In, circu-
lation. The government would be as
nnGb no psk f1 o ne
In order that there might be no delay
rency. the Treasury would have the notes
printed and ready for delivery. Like
wise In order that there e, might 1bs not be
provision would be made that bank de;
string to retire the same instantly would
but but could deposit other currency with the
Treasury and have the tax stopped. This
would as effeetually contract mira, the cur,
retired. and as they came In they would
be exchanged for the money snH,,,d deposited II p
aSp low in interest rates il would naturally
be taken to Indicate that that particular
t bank Of w9 Se II SHs Could s sfses
an examination of Its affairs BY the Con-
troller. n,o,
Senator Aidrich's opposition TO this plan
Is understood to lie in the fear that
when it had been put IN operation o nad the the
next natural move would pe 10 reuu ,f',
the amount OF the tax. and consequently
the incentive to retire the addltional
circulation when it was not needed would
be removed
understood to be his belief that the coun-
try is not in need Of financial LEGISLATION
OF any kind. He takes the ground that
the West and the South are not N nesa
ing period. Those who observe interest
rates. however. predict that the coming
fall will be no different from the past,
and that when the Western and ooutneln
banks have drawn their palhrce ,,,, '. .,tiii
the Eastern money centers i,ie'e MI, Nj send
the i1a.erest rate soaring, Wneh tHe y. WEI VEL
and the South have used the llmlt OF hht'n
supply 1t Will be the East that VII ~, ~
called on to furnish the balance. nllu ~, t nr
East will demand the usual rulnpn 81 lhl Mr
Cannon's constituents will see NAV l o me
Eastern financial Institutions are tne ouss
which Invariably make money out o. s WA
financial squeezes. that the Mes,e 70 a fn.
Southern farmer Is IN the one 3he den demand viii
he so nsstent for a sane meas ,,as L pa
relief that the Illinois statesman Ni ~ AZ, no
brought to revise his declaratdlo,lsa "a "a pf
position. In any event, the uel,a a,, IIhot
the country are believed to pc suc no,n sidd.
the subject deserves the earnest coI tars
Grafton of the people ana the les
Viii Continue Strike.
PAWTUcKET, II, T., July 10 by a.,
unanimous vote the lace opera lives ~:
c--------