Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1906-10-25
Legislative Committee Of American
Bankers Association Makes
Report.
IT WAS AGAIN REFERRED
A Committee to ne Appointed By
Executive Council Will Present
Matter to C0ngresS-The
Scheme ~ Outlined.

moves tnat at times OcchsiOneu hDso
lutely confusion when the subject Of
the currency reform plan was intro
duce' From the time that the open
ing speeches inaugurating the con
vention on Wednesday had been con-
cIuded until Fridays session the del
egates had looked forward to and at
times .impatiently clamored for the
introduction Of the currency topic,
and when It was brought forward the
convention was ready and eager 10
struggle with 1t. And struggle 1t did
for over an hour, finally eliminating
It's efforts in the addition Of reso-
luton introduced by william George,
Of Aurora, ILL.,, to refer the considera-
ton and formulation Of currency
reform plan to committee to be APP
pointed by the executive council,
which shall confer with the New York
chamber Of commerce committee and
submit a plan for enactment Into
law by congress
With almost breathless interest the
assembly listened to the report OF
the banking legislative committee as
II was read by Chairman Arthur
Reynolds. president Of the .Des
Moines National bank, introducing
the currency subject and setting
forth the plan formulated by the COM
mlttee for credit or currency clear
ance. The plan comprised ten sec
lions and Chairman Reynolds stated
that 1t was prepared with consldera"
ton as to the condition Of the coun-
try, its necessity, the temperament
Of the people, and the best interests
Of the citizens as whole, aiming to
protect the interests Of the humblest
citizen as well as those OF the
wealthy. The moment the reading
Of the committees report was con-
cluded the convention was in an up
roar. Resolutions were offered to
adopt the report as a whole, another
to refer It back to the executive coun-
Gil without recommendation, another
to consider the sections ad seriatim,
and all the while delegates were
wildly clamOring to discuss the sub
ject and give expression to indlvidu-
ally formulated plans. An hours dis
cussion was finally agreed upon and
the discussion was thorough and spir-
tied, but without definite conclusion.
At the expiration Of the time limit a
solution was offered by William
,orge to refer the report of the leg
alive comittee to a special commit
70 and the adoption Of the resolution
ended the matter.
The plan for a credit or clearance
currency proposed by the bank leg!S-
lative committee is as follows:
First: That currency commission
Of seven members be appointed by the
president and confirmed by the sem
ate, this commission to be non-par-
tisan. The comptroller of currency to
be member Of the commission and
the first six members to be appointed,
two for four years, two for eight years
and two for IL years, and for 70 years
thereafter, said members not eligible
for re-appolntment
Second: That credit or clearance
currency may be issued by any ma
tional bank or majority Of the ma
tional banks Of any city upon appli-
cation to the commission, in any
amount not to exceed so per cent Of
the bond secured circulation outstand-
Ing.
Third. That the necessity for
credit or clearance currency and the
maximum time that It may remain
outstanding shall be determined by
the commission and the laws now APP
pllcable to the redemption Of bond Sc
cured notes shall apply to those notes
In like manner, except as to the
amount that may be redeemed in any
calendar month.
Fourth: That the banks issuing
credit or clearance currency must pay
a tax during the time fixed by the
commission for Its redemption at not
'ess than three per cent per annum.
The failure OF the hank to deposit
with the treasury or repositories de-
slgnated by the commission. the
amount necessary to retire within the
required time, the tax on the credit
or clearance circulation outstanding
shall be increased at the rate Of one
per cent per annum for each addition
al week that the bank fails to make
the necessary deposits for It's redemp-
ton, no fraction Of week to be con-
sidered in computation.
Fifth; The tax on the clearance
circulation, after deducting the ex-
penses OF the commission and the
management Of this department shall
be deposited with the treasury Of the
United States as a fund known as
bank credit note circulation fund"
until tAis fund equals Eve per cent Of
the bond secured national bank cir
culatiOn outstanding. All profits IN
excess Of this amount. amer maintain
ing this fund shnli be invested BY the
secretary OF the treasury in gold At
Ire end Of each fiscal year 10 Be held
n the lreaaary be TIE basis for an L.
ne Of eold certificates which shan b
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