The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-14
BANKERS, OPINIONS ASKED.
Chamber ~ Commerce Currency Committee
Sends Out n List OF Questions.

Tn Chamber Of Commerce committee
on currency reform, composed of John
Clafin, Frank 8. Nanderlip, vice-president
Of the National City Bank, Charles A.
Conant, treasurer of the Morton Trust
Company; Dumont Clarke, president Of the
American Exchange National Bank. and
Isidor Straus. has addressed a circular to
the clearing house committees of the prin-
cipal cities of the country.
In the ~circdlar the bankers comprising
the Clearing House committees are asked
n series of questions. Particularly they are
requested to state whether or not they be-
lieve the establishment Of "a centra
note issuing bank, similar to those inl
France, Germany, Austria Hungary and
other countries in Europe, with branches
in leading cities and with the power to re-
discount for national banks and State
banking institutions, but not for individuals,
would be a better solution of the present
currency problem than a plan permitting
all banks to iSslie notes against their re-
sources"
The following questions are also con-
tanned in the circular
Would a central note issuing bank tend to
diminish fluctuations in the rate Of interest,
to prevent recurring periods of monetary
stringency and TO lessen the evils incident to
financial crises?
Should such "A bank be made the fiscal
agent of the Government in receiving govern
ment funds and paying Treasury drafts.
as are the central note issuing banks of
Europe?
Would the operations Of such a bank inter-
fere unduly with the business of existing
barking institutions, provided IL dealt only
with banks and not with individuals?
Should the Government appoint the Of
fcers of such a bank and a majority of the
board of directors or should tho control rest
with the stockholders?
DO you think the headquarters of such a
bank should be in Washington or elsewhere?
DO you believe that there are sound political
objections, apart from its economic merits,
TO the creation of such a central bank?
DO you believe that some change ia desir-
able In the existing system of issuing bank
note currency"
DO you believe that the Sub-Treasury
system is a disturbing factor in the money
market?
If so. do you believe that provision should
be made for regular deposit in the banks OF
the surplus of Government funds above q
reasonable working balance, upon such terms
as will afford safety and perhaps a small profit
to the Treasury?
Do you believe that national banks should
be authorized TO issue a certain proportion Of
currency upon their general resources. such
notes being secured in case OF failure by a
guaranty fund or otherwise?
Is 1t advisable. il additional bank note cir
~culation is authorized, to subject it to a gradu-
ated tax intended to COMPEL the retirement
Of the notes under the, higher rates of ia IA
tion when the special need for them has
passed? s.
II you do not favor the issue of currency
under moderate rates of taxation for use
under ordinary conditions, do you favor
an emergency circulation issued under a high
tax. as proposed by Secretary Shaw in his
annual report for 1905?
Do you favor the constitution Of n guaranty
fund from the proceeds Of taxation 10 cover
III" losses on notes for which the assets OF a
failed bank are insufficient?