The Washington times., 1906-11-12
CANNON NOW WILLING
FOR CURRENCY REFORM
CONTINUED nom FLrst Pagel

committee of the American Bankers As
sociatiou is much more likely To become
The basis for an agreement by the COM
mission. This is an asset currency pro-
IosaI. permitting either "a bank OF
clearing house association To issue cir
Culation mp To 81 per cent of the regular
circulation secured by bonds; this cir
oulatiOn 10 be subject To 3 per cent an
i.uaI tax. The bank making the issue
must deposit approved securities worth
lU per cent more than the amount pro-
Iosed To be issued. z ne notes thus is
sued shall ne so printed that the iden-
,ity of the bank issuing them shall not
re nOWn. The tax collected from this
circulation shall accrue iE the Treasury.
bnd there be held until 70 equals . per
cent of the regular bOud-SeCuTed note
circulation. this fund 10 be invested il
yOld and 10 have two uses. First. To-
assure prompt redemption of any of the
special currency, pending realization ora
The assets deposited to secure IT. ana,
second. after this Is assured, 60 redeem
the outstanding Treasury notes and sub
stitute for them an issue Of gold ceTtih-
Gates
Administration of this process of cur
rencV heXibility shall be I'm the control
of a currency commission 10 he appoint
cd by the President nHU-partisau. TO i'll
clude the Comptroller at the Currency.
Such is In outline the plan of the
Bankers Association legislative commit
Tee u Will be th. basis for whatever
recommendation may come from the
present conference Tt Is stated that
there Is every prospect tn2J diff tereuces
between East and West. which have az
times seemed To stand iu tEy way of
agreement viii not now Interfere
May Call Later Meeting.
Chairman Reynolds. of the commits
sion. expressed some doubt whether the
present was a propiuous time for get
ting the most satisfactory results from
the meeting. because Congress is not
in session. I've viii probably be in
session here a week" ne said. and
then whatever we agree upon will have
TO be laid before the committees of
Congress and their approval secured. 7
have thought il would have been better
10 meet while Congress was here. that
We might thresh ont the propositions
with that body" MI Reynolds indi-
Gated that the commission would proba-
Div meet the Congressional committees
later in order TO present its conclusions
Between the different views of the
credit currency proposal the widest di-
&rgence now relates 10 whether special
assets shall be segregated TO represent
cle extraordinary issues. MIR Forgau
&sentS that element which would have
ne credit currency issued against the
general assets of the bank. without seq
regating special securities.
On the other hand the country bank
ers in general oppose this, and demand
That there be provision for segregation
81 specific assets to represent the credit
currency issues. These believe that
there would be no chance OF getting
Congress 10 pass measure which did
nat include the segregation of assets.
That President Roosevelt will make a
general recommendation OF legislation
10 effect more currency fexibilitV has
been assured by some. OF the bankers
who have had opportunity To learn his
attitude He will not attempt 10 out
line legislation. but will indicate his
belief that something ought To be done
The suggestion Of adjourning the
meeting TO New York received scant
consideration. New York Is the chief
mover for this reform, said a banker
and we can do New York much more
good by staying here than by moving
over there.