The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-11-14
PLAN CURRENCY LEGISLATION.
BANkERS' COMMISSION AGREES
on EMERGENCY CALCULATION.

To ne Issued by Banks ON Extraordinary
Occasions and Withdrawn when Crisis
Has Passcd-Experts Getting Together
on Reforms Nurse shaw On Hand.
WASHINGTON, Nov. IS.-When the none
tary commission of he American Bankers
Association adjourned at Q o'clock this
evening at the end Of their second day OF
elaboration. IL was with the feeling that
substantial progress had been made toward
a general plan Of currency legislation.
Several votes were taken to-day, two OF
which were regarded as especially impor-
tant. By the first vote the commissioners
decided not to recommend segregation OF
assets for special security for notes issued
under the emergency circulation plan to
be recommended to Congress. BY the
second vote a committee was authorized
to work out the details Of a plan Of taxation
on the emergency issues to provide a guar
anty fund. This committee is composed OF
+. A. Vanderiip Of the National City Bank
OF New York, James B. Forgan Of the First
National Bank Of Chicago. and solomon
Wexler Of the Whitney Central National
Bank of New Orleans.
Briefly stated, the plan owsrd which
the commission is tending oontemplates an
emergency circulation, 10 be issued under
the direction OF the Comptroller OF the
Currency when a stringency in the money
market demands il, to be based upon the
general credit Of the bank issuing it, to be
an equal lien with other obligations on the
credit Of the "a n and to be ~safeguarded
with ample redemption facilities, AMOUNT
ing in fact to a daily clearing house redemp-
ton, through local clearing houses. the
object being to retire the emergency circu-
lation promptly when the emergency which
called IL into existence has passed.
The plan Is one which is said. to be in
successful operation in Scotland and other
European countries. IL was the judgment
OF those participating in the conference
to-day that before the end Of the week the
general outlines Of a comprehensive plan
for an circulation will have been
worked out so completely hat it will be
necessary only TO confide the details to a
subcommittee.
1t il the firm belief OF the members OF the
commission that the plan thus agreed or
will command the unanimous approval Of
the commission and will be so fair that it
will commend itself to Congress and become
a law before March 4.
The meetings to-day were held behind
closed doors and the commission is keeping
its work from the public as,far as possible
until definite conclusions have been reached.
1t is lilsely that most Of the week will be con-
sumed. The embarrassment that has here
tofore attended the efforts of the numerous
opponents OF currency reform to get to-
gether are not present in this conference.
The first meeting developed Wide diff
ferences OF opinion. but after the first day
there was a disposition to subordinate per-
sonal views to the Judgment OF the majority.
The members OF the commission how no
disposition TO leave Washington until they
have agreed upon something.
F. A. Vanderbilt and Charles A. Conant,
representing the currency committee OF
the New York Chamber Of Commerce. have
been invited to remain as associate members
of the commission IL was decided to-day
to invite Senator Aldrich, chairman Of the
Finance COMMITTEES Of the Senate. and
Representative Fowler, chairman of the
Committee On Banking and Currency Of the
House Of Representatives, to participate
in the conferences. Mr.. Fowler arrived
tonight. Nothing has been heard from
Senator Aldrich.
Secretary Shaw, Comptroller Ridgely
and United States Treasurer Treat ave
been attending the conferences Secretary
SHAY in explaining his presence before the
commission said he came as a nurse. so to
speak, who was attached to the financial
hospital. He was in the presence, he said,
OF distinguished financial surgeons, pre-
pared to give them the benefit Of his OBJ
servations of any symptoms the case had
disclosed TO him before the surgeons as
sembled began their surgical operation.
The staid bankers enjoyed the Secretary's
joke, but they showed an unwillin gness to
follow the nurses suggestions when they
voted against the recommendation OF a plan
authorizing the banks to issue emergency
circulation en- security other than Govern
ment binds to be approved by the Secretary
Of the Treasury. This was a relief measure
frequently suggested by Secretary Shaw in
the past.
The bankers on the commission are work.
ing on an average six hours a day. They
exceed the usual banking hours. They
meet daily at 1880, adjourn about 1 p. NJ.
for an hour and a half and are in session
again from $50 until 9 p. NJ. Last night
they attended a vaudeville show in a body.
They we're guests at luncheon to-day OF the
District of Columbia bankers and were
dined tonight by y. A. VANDERBILT. Secre-
tary Shaw and other Treasury officers we're
also invited to the dinner.
Senators and Representatives who are in
Washington are taking unusua interest in
the monetary conference. Senators Bur-
rows and Warren both declared to-day that
there was great need Of currency leRisla-
ton, and Representative Livingstone Dem.)
of Georgia said there was more demand in
the South for remedial currency legislation
than there was for tariff legislation.