Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-11-12
TWO PLANS IN VIEW
Commission Formulating a
System of Currency
FOR RELIEF IN EMERGENCIES
Session Held Today Behind Closed
Doors at New Willard.
A. B. HEPBURN Is CHAIRMAN
Work Of the Commission to Be Sub
mitted to Congress at an
Early Date.
A. B. HEPBURN Is CHAIRMAN

noon today at the New Willard and began
the consideration of plan for supplying
the country with credit or clearance cur
rency. The members of the commission de-
cided to hold it's sessions with closed doors.
The attendance was very general. All of
the fifteen members representing the Amer
lean Bankers Association were present at
the hotel this morning, as follows: Repre-
senting the American Bankers Association
legislative committee: Mr.. Arthur Rey-
nolds. president of the Des Moines, Iowa.
National Bank, chairman; Mr.. E. F. Swim
ney, president First National Bank, Kansas
City, Mo-; Mr.. Joseph A. McCord, cashier
Third National Bank, Atlanta, Ga; W. ".
Cox, president Second National Bank Of
this city; Mr.. John L. Hamilton, vice presi-
dent Hamilton and Cunningham banks Of
Hoopeston, Ill. Additional members of the
commission appointed by the association:
Mr.. A. B. Hepburn, president Chase Ma
tional Bank. New York, who has been
chosen chairman of the commission; Mr..
James B. Forgan, president First National
Bank, Chicago: Mr.. Joseph P. Talbert,
vice president Commercial National Bank
Of Chicago; Mr.. Charles H. Huttig, presi-
dent Third National Bank, st. Louis; Mr..
Festus j. Wade, president Mercantile Ma
tional Trust Company, st. Louis; Mr.. John
Perrin, president National Bank of Indian
apolis. Ind; Mr.. Luther Drake, president
Merchants National Bank, Omaha; Mr.. Sol
Wexler. vice president Whitney Central
Bank, New Orleans; former Gov. Myron I.
Herrick of Ohio. and Mr.. Robert Wardrop.
president Peoples National Bank, Pitts
burg, Pa.
Representing New York.
The New York Chamber of Commerce
has five of it's members on the currency
commission. of which number Mr.. Frank A.
vanderlip and Mr.. Charles A. Conant were
present today. The other members are ex
pected to arrive here during the afternoon.
They are Mr.. John Claflin. Mr.. Isador
Straus and Mr.. Dumont Clarke. Mr.. JOS
eph Francis Johnson is the secretary of
the special commission of the chamber of
AS soon the members assembled Mr..
Vandeylip extended an invitation to all of
those present to hold meeting in the
rooms of the New York Chamber of Com.
merce. This invitation was not acted upon
today, and is not likely to be accepted at
least during the present session of the
In the view of some Of the
members, as their work Is to go before
Congress in the form of a recommendation
for legislation, it is just as we'll that the
commission shall hold all of its meetings
in this city, and not meet in New York. If
there should be future meetings of the
New York may possibly be Sc
lected.
Mr.. A. B. Hepburn, president of the
Chase National Bank of New York, was
chosen chairman today. The preliminary
statements that were made soon indicated
what will be the essential points Of differ
ence between the plans suggested by the
committee of the American Bankers AS
of Commerce The difference between
these plans are sufficient to give rise to a
prolonged debate, but, in the opinion of
members of the commission, they are not
so great that the representatives Of both
bodies cannot get together.
The Two Plans.
The plan of the American Bankers As
ISOLATION provides for the appointment of a
commission of seven members, one of
whom shall be the controller of the cur
rency by the President of the United
States, to be confirmed by the Senate. This
commission is to sit in this city as does
the interstate commerce commission, and
1. will decide at all times whether or not
the conditions if the financial world are
such as to demand the issuance of credit
or clearance currency to meet stringency
In the money market.
If the commission shall find that there is
q scarcity of money in one part of the
and an abundance in another, It
will be its duty to call attention to that
fact and have the banks needing money get
1t from places in which it is abundant. But
IL 1t learns that all over the country there
Is a genuine stringency, it will permit banks
to issue credit currency in such amounts
and for such times as In its judgment are
necessary to tide over the emergency. The
tax 1t would put upon such issues is 3
per cent.
In opposition to this plan the chamber of
commerce of New York proposes to make
the issuance of credit currency automatic
According to that plan, any bank finding q
stringency of the currency may apply for
and have issued to 1t credit currency, which
Will be called in as soon as the public fails
TO use 1t. That Is, when such currency re-
turns to the bank and cannot be kept in
circulation it must be cancelled. IL cannot
be placed In the surplus Of the bank The
plan provides for graduated tax ranging
from z to q per cent. the tax .increas-
Ing as the amount Of currency issued in
creases, and that plan, 1t is said, will make
i to the advantage of the banks to keen
the amount of such currency in circulation
as low as possible. =
Provision for Securing Circulation,
Both plans provide for amply securing
circulation by approved securities. Both
plans provide safeguards against the in
hation of the currency. so that II IL he
lieved. In the case of either plan there
would be no danger of imitation.
The commission will probably find It nee
essary to hold other sessions, lasting sew
eral days. but there is a general desire
to come to an agreement as soon as pos
sible. Neither the chamber of commerce
nor the American Bankers Association has
taken any action which will bind it to any
definite plan.
1t is realized by all the members of the
that whatever it recommends
must meet the approval of Congress If the
efforts are to result in any advantage The
members express their belief that they will
be able to come to agreement upon a
plan that will be accepted by Congress for
the good of the business of the country
and not merely for the advantage of the
bankers.
AT the first session of the commission
Mr.. Vanderlip explained the plan of the
chamber of commerce. Shortly before
o clock the meeting was adjourned for
luncheon, after which Mr.. Conant spoke
at some length on the same subject.
The American Bankers Association will
have its plans explained later.
Mr.. Cox Makes Welcoming Address.
After the commission was called to order
today by Chairman Hepburn, Mr.. w. ".
Cox of this city welcomed the bankers
In an appropriate address. He stated
that President Norment Of the local
bankers association had earlier In the day
extended an invitation Of all the members
of the commission to attend a banquet to
be given here by the local bankers. At that
time IL Is exDected the commission will hava