The Montgomery advertiser., 1906-04-14
Plans for Big Bank in
 New York.
WITH CAPITAL OF $5O,OoO,oOo
Movement Given Impetus by the
 Recent Stringency.
Omcisls of the City National Bank Deny That They are Taking More Than Passing Inter-
 est in Scheme.

today that a plan is under discussion among certain bankers in this city to establish a bank with a capital of s50,- 000. 900 for the purpose of regulating money rates and preventing periods of money stringency and accompanyins high rates of interest.
 The movement was given some ,n- petus by the recent stringency in tne money market. The name Of the Ma tional City Bank was mentioned In connection with the plan and one sug- restion was made that the stock of that bank be increased by $25,000.000 or $so, 900. 900 in order to give 1t con trol of the financial situation in this city sufficient to prevent the recur- renee of periods of extreme high rates tf money. Another suggestion was that q trust company be organized un- der the direction of the National City Bank Ohicials of the bank declared, However, that they were not taking more than a passing interest in the various plans.
 Some financial concerns which have taken an interest in the movement as sert that such an institution might exercise considerable control of the foreign exchange situation to the ex- tent of regulating imports and exports of gold somewhat as does the Bank of England. leading bank official how ever, said that the only cure, for such money evils as the New York market has recently witnessed lay in the es- tabIishment of a central bank which shall be given the power of issue in times of emergency.
 Series of Questions.
 It was ascertained today that series of question bearing upon this subject had been. forwarded by the special currency committee of the New York State chamber of commerce to the clearing houses of the leading cities of the United States.
 The bankers are asked to notify the New York committee whether they believe that a central note issuing bank similar to those in France, Ger many. 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 better solu- tion of the present currency problem than a plan permitting all banks to issue notes against their resources"
 Also the following questions;
 would 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 crisis?
 Should such a bank be made the fiscal agent of the government in re- ceiving government funds and paying treasury drafts as are the central note issuing banks of Europe?
 Would the operations of such bank interfere unduly with the busi- ness of existing banking institutions provided 1t dealt only with banks and not with individuals?
 Should the government appoint the officers of such a bank and a majority of the board of directors, or should the control rest with the stockholders.
 Place of Headquarters.
 Do you think the headquarters of such a bank should be in Washington, or elsewhere?
 Do you believe there are sound poli- tical objections, apart from its econo- mis merits, to the creation of sue ha central bankf
 DO you believe that the sub-treas- ury system is a disturbing factor in the money market?
 If so, do you believe that provisions should be made for regular deposit in the banks of the surplus of govern ment funds above a reasonable work ing balance upon such terms as will afford safety and perhaps a small prof 1t to the tresury?
 Do you believe that national banks
  proportion of currency upon their gen eral resources such notes being secured in case of failure by a guaranty fund or otherwise?
 'Is it advisable, if additional bank notes circulating is authorized to subject 1t to a graduated tax intended to compel the retirement of the notes under the higher rates of taxation when the special need for them has passed?
 If you do not favor the issuance of currency under moderate rates of taxation for use under ordinary condi- tions, do you favor an emergency cir culation issued under a high tax, as proposed by Secretary Shaw in his an- nual report of 1905?
 DO you favor the constitution of a guaranty fund from the proceeds of taxation to cover the losses on notes for which the assets of a failed bank are insuf1cient?'