The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-10-20
Credit Currency Matter is Re-
ferred 10 Commission :
NATIONAL OFFICERS NAMED
John H. Frye of Birmingham Heads
Savings Bank Section for Ala
bama-conventio Is Ad-
journed Sine Die.


sociatlon was marked by warmth of dis
cussion, multiplicity of moves. and COM
plexity of counter-moves that at times
occasioned confusion. when currency re-
form was introduced.s At the time that
the convention opened the delegates had
looked forward to and at time impatient
ly clamored for, the currency topic, and
when it was brought forward today the
convention was eager to struggle with
1t. And struggle it did, for over an hour,
finally eliminating its efforts in the
adoption of a resolution introduced by
William George of Aurora, Ill. to refer
the plan to committee which shall
confer with the New York Chamber of
Commerce committee and draft a bill for
presentation to Congress.
Hear 1t With BreathIess Interest.
With almost breathless interest the as
sembly listened to the report of the bank
by Chairman Arthur Reynolds, president
of the Des Moines National bank, ex-
planning the plan formulated by the COM
mittee for a credit or currency clearance.
Chairman Reynolds stated that it was
prepared for consideration as to the con-
dition of the country; its necessity; the
temperament of the people and the best
interests of the citizens as a whole, aim
ing to protect the interests Of the hum
blest citizens as we'll as those of the
wealthy. The moment the report was
concluded the convention was in an up
roar After an hours discussion. a resolu-
A.. a -,
refer the report to a special committee
and the adoption of the resolution ended
the matter.
Five minutes The majority of
the delegates were hlnrying from the hall
TO enjoy a boat ride on the Mississippi
river. Edmund G. Vaughan, president of
the National Bank of Cuba, at Havana.
made an address on Banking in Cuba
after which the candidates named by the
nominating committee were unanimous
ly elected.
Retiring President j. p. Hamilton was
presented with a solid silver punch bowl,
the presentation speech being made by
former president, Colonel Robert Lowry
OF Atlanta, Ga. President-Elect c. S.
Whitson, vice president of the National
City Bank of New York city, and Vice
Presdent-ele p. ID. Powers. vice presi-
dent of the Citizens State Bank of Mid
dlesboro, KY, were installed, and the
convention adjourned sine die.
Report of Committee.
The report of the bank executive COM
mittee presenting plan recommending
for credit or clearance currency, was as
follows:
1. That a currency commission of seven
members be appointed by the President
and confirmed by the Senate; this COM
mittee to be non-partisan.
2. That credit or clearance currency
may be issued by any national bank or a
majority of the national banks of any city
upon application to the commission in any
amount not to exceed 80 per cent of the
bond secured circulation outstanding.
g. That the necessity for a credit or
clearance currency, and the maximum
time 1t may remain outstanding, shall
be determined by the commission and the
laws now applicable to the redemption of
bond-secured notes shall apply to these
notes in like manner, except as to the
amount that may be redeemed in any
calendar month.
a. That the banks issuing credit or clear
ance currency must pay a tax during the
time fixed by the commission for It's re-
dempton at not less than 3 per cent per
annum.
S. The tax on the clearance circulation
after deducting the expenses of the com
mission, and the management of this de-
partment, shall be deposited with the
treasurer of the United States as a fund
known as bank credit note circulation
fund" until this fund equals per cent
of the bond-secured national bank circu-
lation outstanding.
6. Before any bank can issue credit or
clearance currency 1t must deposit with
the treasury department or repositories
to be designated by the commission APP
proved securities of the bank.
T. The credit or clearance currency shall
be retired gradually at such times and
such amounts as shall be directed by the
commission.
s. The credit or clearance currency notes
to be printed and an amount to be kept
ready for emergency distribution by the
government equal In amount to % per
cent of the bond-secured bank circula-
tion outstanding.
The notes shall be issued in denomina-
tions of s.. $40, $20 $50 and 500 as desired.
10 There shall be nothing on the notes
designating the name or the number of
the bank issuing them. but they shall be
numbered and registered by the treasury
department.
Referred to Commission.
resolution introduced by William
George of Aurora. H. was adopted that
the bank executive committees currency
plan be referred to a commission of fif-
teen. which shall be appointed by the
executive council, five members of which
shall be the present legislative commit
fee the other ten members to be selected
with due reference to the national state
banks and trust companies, and said COM
mittee shall confer with the committee
Of the chamber of commerce of New York
city and after careful investigation and
study of plans submitted shall cooperate
with the proper congressional committees
with the end in view of the enactment of
a bill covering this subject.
Officers Are Elected.
The convention elected the following Of
ficers:
President-G. S. Whtson. vice president
NJ the National City bank. New York
First Vice President-J d. Powers. vice
nresident of the Citizens State bank Mid
dlesboro. KY
Members of the executive council to
represent tho state associations:
E. o. Watts. Nashville. Tenn; Clay II.