Albuquerque evening citizen. [volume] (Albuquerque, N.M.) 1905-1907, 1906-10-04
New York Chamber Of COM
merce Appointed Committee
to Report on Currency
AFTER MONTHS or MOST
CAREFUL CONSIDERATION
They Recommend the Resolutions
Which Are Herewith Given
to the People.

New York, Oct 4-Either a central
bank Of issue, to be established and
controlled by the government, or a
simple measure enlarging the present
issue privilege Of national banks. in
such manner that their right of issue
will not vary with ownership of gev-
ernment bonds, are methods favored
by the special currency commission
appointed by the New York chamber
of commerce last March to inquire
into the conditions of the currency
and suggest desirable changes. The
report was submitted at meeting OF
the chamber of commerce today.
The report was elaborate but the
following are the resolutions with
which the report concludes:
1. That legislation be enacted
which shall provide the country with
flexible and elastic bank note cur
rency; and to this end we suggest
that either one of the two following
plans might wisely be adopted:
(a) Let there be created a central
bank of issue similar to the Bank Of
Germany or the Bank of France; such
bank to deal exclusively with banks.
it's stock to be owned in part by hank
ing institutions and in part by the
government but in its management
representatives of the government
shall be supreme. This cetral bank
shall issue currency, rediscount for
other banks, hold public money and
act as agent of the government in re-
deeming its paper money and making
| it's disbursements.
Or (bl Let any national bank whose
bond-secured circulation equals so
per cent of its capital have authority
to issue additional notes equal in
amount to 35 per cent of its capital
Let such additional notes be subject
to graduated tax as follows: The
nrst per cent, taxed at the rate of
per cent per annum the second 5
per cent, taxed at the rate of per
cent; the third per cent, taxed at
the rate OF per cent; then an issue
equal to 10 per cent of capital, taxed
per cent; then an issue equal TO 10
per cent of capital taxed per cent.
Let the proceeds of this graduated
tax constitute a guaranty fund, in the
custody of the government, for the re-
demption of the notes of failed banks.
TO insure the prompt retirement of
notes when not needed, let redemption
agencies be established at subtreas-
uries and other convenient points.
Let all he notes of a bank be alike
in form, and let it be the duty of the
United States treasury, as at present,
to redeem all the notes of a. failed
bank in full on presentation from the
per cent redemption fund, and after
the exhaustion of that fund from the
guaranty fund.
2. That the law restricting the re-
| tirement of national bank notes to
$3,OO0,OO0 per month by the deposit
of lawful money be repealed
3. That future issues of United
States bonds be not made available as
a basis for the issue of national bank
| notes.
| 4. That the laws regulating the op-
erations of the United States treasury
be amended in such a manner that
they shall not, as now, interfere with
the money market; and to this end we
suggest a law requiring that all money
in the general fund of the treasury
above a reasonable working balance
be deposited in national banks.
JOHN CLAFLIN.
Chairman,
FRANK A VANDERBILT,
DUMONT CLARKE,
ISIDOR STRAUS,
CHARLES A. CONAN'T.