The Montgomery advertiser., 1906-11-15
PROVIDE FOR
 EXPANSION Bankers Discuss Pro- posed Legislation. TO ESTABLISH GUARANTEE Fund to Be Kept for Redemption
 of Notes. Imposition of Tax On Emergency Papea Proves MoMt Troublesome. Re- quirinG Many vetes~-Afm
 so Accommodate Pub-
 lie Needs.
TO ESTABLISH GUARANTEE

W&suluStnus NOV. 1f.-~CurFGu9y 2XM pansion legislation in some form wfit be recommended for the action of Con- gross at It's coming session as the re-s suit of the sessions of the currency committees of the American Bankers Association and the New York Cham Der of Commerce.. which have been held here for the past three days. What that legislation will be, none of the members are willing to say at thlM time. as all of them have been pledged to absolute secrecy regarding tho doe ings of the committees until the final draft of the plan proposed ss passed on by them at what Is expected to bs the final session tomorrow.
 All the principles which are to un- derlie the proposed plan of currency reforms were passed on today. and tis final work of putting them in shape and outlining the details for their practical application was late In tha afternoon referred to a special com4 mittee consisting of A. B. Hepburn. president of the Chase National Bank of New York; James B. Forgan, pres ident of the First National Bank 0E Chicago. and John Perrin. president Of the American National Bank of Indian- apolis. These arc to assisted by Pres4 ideht Frank Nanderlip. of the National City Bank of New York and CharleR A. Conant. of the Morton Trust Colns pany. representing the New York cham< Der of Commerce.
 Chairman Fowler, of the House com, mittee on currency and Comptroller of the Currency Ridgely were present during the sessions of the committed today, and 1t said the principles deters mined on meet with their full approve al The action Of the committees was said to be unanimous.
 Emergency Currency Tax.
 The greater portion of todaY's ses- sion of the committees was consumed in the consideration of the report Of the subcommittee consisting Of MessrE, Forgan of Chicago; Waxler of New Orleans. and Nanaerlip. of New York, to which was referred the ques- ton of the amount Of tax 10 Dc ina- posed on the issue of general credit emergency currency to be emitted by banks in times of financial atrin- gency.
 Some features of their report which, it is understood. included q graduated tax. was not entirely satisfactory to the bankers, and 1t was reoommltted to the special subcommittee for fur~ ther consideration. Incidental to this was also the establishment Of an ini- mediate guarantee fund to meet the obs ligations of any bank which fails be- fore the regular guarantee fund is available.
 There was dissenslon of sentiment as to the amount of the graduated tax to be fixed on the general credit issues. some of the members favoring a tax ranging from 1 to , per cent, accord- ing to the amount of notes emitted and others expressing the opinion that tho variation should be between but and 3 per cent.
 Tk official announcement was made. that the committees today agreed snbstan- tially on the following propositions:
 Guarantee Fund.
 The establishment of per cent guarantee fund for the redemption of the notes of failed banks, and for other purposes, the amount of general credit notes to be kept in reserve to be the same percentage as that of deposltss and limitation of all issues of cur- rency by any bank to that of it's capi~ tai stock
 The imposition of tax on the emer4 geney notes was the most troublesome of all to setle. A vote was taken on the question yesterday. Today tlIis action was recOnsidered and several other votes were taken. The final votes could not be ascertaiued tonight, hut 1t is stated to be in favor of a gradu- ated tax of very limited range and small in amount. This vote, it Is said. may not finally dispose of the question. and 1t may come up for consideration again tomorrow
 The discussion disclosed tho fact that the bankers are anxious to have ia known that their efforts to obtain tho sanction of Congress to issue additional currency in times of financial stress is not the purpose of making money, but with q view to accommodating the pub- lie. and that as soon as the demand has ceased. the emergency currency is re- deemed and cancelled.