New-York tribune., 1906-11-15
CURRENCY EXPANSION
WILL BE RECOMMENDED.
Bankers Haze Nearly Finished Their
Work-Tar on Emergency Issues.

Washington. Nov 14-Currency expansion
legislation in some form will be recommended
for the action of Congress at its coming session
al the result OF the resolutions Of the currency
committee OF the American Banking Associa-
ton and the New York Chamber of Commerce.
which have been in session here for the last
three days
1t is understood tonight, although no official
announcement was made. that the committees
to-day agreed substantially the following
propositions:
The establishment of per cent guarantee
fund for the redemption Of the notes of the
failed banks and for other purposes;
The amount of general credit notes TO be kept
on reserve 10 be the same percentage as that OF
deposits and
A limitation Of all issues Of currency by any
bank TO that of its capital stock.
The imposition of a tax on the emergency
notes was the most troublesome of all to settle.
vote was taken the question yesterday.
To-day this action reCOnsidered and
several other votes were taken The final
vote could not be ascertained tonight.
but Il is said to have been in favor of a
graduated tax OF very limited range and small
in amount This vote. II is said, may not final
" dispose of the question and 1t may come up
for consideration again tomorrow. During the
debate to-day some of the members thought
cent would meet ell reasonable requirements.
The discussion disclosed the fact that the bank
ers are anxious to have It known that their
efforts TO obtain the sanction of Congress to
issue additional currency in times of financial
stress is not for the purpose Of making money.
but with a view 10 accommodating the public.
and that as soon as the demand has ceased the
emergency currency is to be redeemed and cam
ceIled.
The committee finished the burden of its
work to-day. All the principles which are 10
underlie the proposed plan Of currency reforms
were passed to-day. and the final work Of
putting them in shape and outlining the details
for their practical application late in the after
noon was referred 10 a special committee, con-
sisting OF a. B. Hepburn, president Of the Chase
National Bank of New York; James B. Forgan.
president Of the First National Bank Of Chi
cago, and John Perrin, president Of the Ameri-
can National Bank OF Indianapolis. These arc
TO be assisted by Frank A. Vanderp, Of the
National City Bank Of New York. and Charles
A Conant, Of the Morton Trust Company OF
New York. representing the New York Chamber
/ of Commerce. Chairman Fowler of the House
Committee Currency and Controller Ridgely
were present at the sessions OF the committees
to-day. and II is said the principles determined
on meet with their full approval The action Of
the committee was said to be unanimous
! The greater portion or to-day's session or the
committees was consumed in the consideration
OF the report of the subcommittee, consisting
OF Messrs. Forgan, of Chicago: Wexer, OF New
Orleans and Vanderlip Of New York. to which
u,as referred the question of the amount of tax
IN he imposed the issue of general credit
emergency currency to be emitted by banks in
times Of financial stringency. Some features Of
/ their report which II is understood, included
! graduated tax We're not entirely satisfactory to
/ ths bankers and II was recommtted TO the spe-
ciaI subcommittee for further consideration
Incidental 10 this. also, was the establishment
| Of an Immediate guarantee fund TO meet the obi-
cations Of any bank which failed before the
regular guarantee fund is available. There was
a division Of sentiment TO the amount Of the
graduated tax to be fixed on the general credit
issues some of the members favorfng a tax
ranging from 8 per cent, according 20 the
amount of notes emitted. and others expressing
the opinion that the variation should be between
only 2 and per cent.
All the members express their satisfaction over
what has been accomplished and express the
hope that It will with the approval Of
Congress.