Omaha daily bee., 1906-10-20
BANKERS HAVE WARM TINE
Report on Plan for Currency Reform
Provokes a Lively Debate.
REFtRREr TO SPECIAL COMMITTEE
IL Confer with New York
iber of Commerce and Draft
$ Bill to he Submitted
to Congress.

cia ton was marked by warmth Of discus /
sion, multiplicity of moves and complcXity (
Of counter moves that at times occasioned .
absolute confusion when the subject of a /
currency reform plan was introduced From /
the time that the opening speeches In
augurating the convention Wednesday had !
been concluded, until todays session, the I
delegates had looked forward to, and at
times, impatiently clamored for the intro [
duction Of the currency topic, and when I
Il was brought forward today the conven- /
zion was ready and eager to struggle with /
II. And struggle IL did for over an hour I
finally eliminating it's efforts in the adop- |
tion of resolution introduced by William !.
George Of Aurora, ILL.,. to refer the con 3
sideration and formulation of currency
reform plan to committee to be appointed /
by the executive council. which shall con-
fer with the New York Chamber of Com !
mercc committee and submit plan for en-
actment into law by congress.
With almost breathless interest the as
scmbly listened TO the report of the bank
ing legislative committee 1t was read
by Chairman Arthur Reynolds, president
Of the Des Moines National bank, intro
duciug the currency subject and setting
forth the plan formulated by the COM
mittee for a credit or currency clearance.
The plan comprised ten sections and Chair
man Reynolds stated that 1t was prepared
with consideration to the condition of
the country. its necessity. the temperament
of the people and the best interests Of
the citizens as a whole, aiming to protect
the interests of the humblest citizens, as
well those of the wealthy.
Convention In ru Jpronr.
The moment the reading of the commit
! tees report was concluded the convention
was in uproar. Resolutions were Of
fered TO adopt the report as a whole, an
other to refer it back to the executive
council without recommendation, another
to consider the sections ad seriatim, and
all the while delegates wildly clamored to
discuss the subject and give expression to
individually formulated plans. An hours
discussion was finally agreed upon, and
/ the discussion was thorough and spirited,
but without definite conclusion. At the
! expiration of the time limit a resolution
was offered by William George TO refer the
report Of the legislative committee to
! special committee, and the adoption of the
resolution ended the matter. Five minutes
! later the majority of the delegates were
! hurrying from the hall to enjoy a boat
ride on the Mississippi river, arranged for
! by the entertainment committee.
! Edmund G. Vaughan, president of the Ma
! tional Bank of Cuba, at Havana. made AN
address on Banking in Cuba" after which
! the candidates named by the nominating
committee were unanimously elected.
I Retiring President John l.. Hamilton was
presented with solid silver punch bowl,
! the presentation speech being made on
behalf of the convention by former Presi-
dent Colonel Robert Lowry of Atlanta,
/ Ga. President-elect G. S. whitson, vice
president Of the National City bank, New
{ ifNr ar,A
Powers, vice president Of the Citizens
State bank Mlddlesborough, KY, were in
stalled into Office and after brief speeches
of acceptance by each the convention ad-
! journed sine die.
Plan for Credit Currency.
I The plan for credit or clearance cur
! rency proposed by the bank legislative conl-
/ mittee is as follows:
] First-That a currency commission OF
J seven members, TO he appointed by the
president and confirmed by the senate this
} troller of currency to be a member of the
/ commission and the first six members to
eight years and two for twelve years, and
/ for twelve years thereafter. said members
not eligible for reappointment
Second That credit or clearance currency
! may be issued by any national hank. or a
majority OF the national banks OF any city,
upon application TO the commission in any
amount not to exceed 80 per cent of the
bond-secured circulation outstanding
t Third-That the necessity for a secret az.
4 clearance currency and the maximum time
that II may remain outstanding shah be de-
termined by ths commission, and the laws
now applicable 10 the redemption of bond
secured notes shall apply To these notes
{ in "a like manner, EXCEPT 10 the amount
thpt may be redeemed in any calendar
Tourth-That the banks issuing credit or
clearance currency must pay q tax during
! redemption at not less than per cent Der
annum. The failure OF the bank 10 deposit
! with the treasury or repositories designated
| by the commission the amount necessary to
I retire within the required time, the tax
! on the credit or clearance circulation out
/ standing shall be increased at the rate OF
, ! per cent per annuIn for each additional
week that the bank fails to make the nee
/ essary deposit for its redemption, no frGc-
tion OF week to be considered in com
| putation.
/ tion. after deducting the expenses of the
| commission and the management of this
! department shall he deposited with the
! treasury OF the United States a fund
! known as bank credit note circulation
/ fund" until this fund equals per cent of
tion outstanding, All profits in excess Of
this amount, after maintaining this fund
shall be invested by the secretary of tho
treasury I'm gold at the end of each fiscal
I year. 10 be held in the treasury as the
basis for an issue Of gold certificates which
, shall be used IN the retirement of the nv
covered tree sury notes. The bank credit
note circulation FUND 10 be used for the
& immediate redemption OF credit or clear
ance currency notes outstanding of any
failed bank pending realization on the Sc
curties deposited and TO cover any losses
that might occur in realizing on such Sc
curities
security for Issue
SiXth-Before any bank can issue credit
or clearance currency II must deposit with
the treasury department or repositories 10
I be designated by the commission, approved
/ securities OF the bank, passed upon by the
I comptroller Of currencys department. to
| an amount OF at least 10 per cent in excess
/ of circulation to be issued.
] SeVenth-The credit OF clearance cur
rency shall be retired gradually at such
I times and in such amounts as shall be di-
rected by the commission by depositing
, funds with the Treasury department or al
such repositories as the commission may
direct.
Eighth-The credit or clearance currency
notes 10 be printed and an amount to be
kept ready for emergency distribution by
the government equal in amount to . uer
cent of the bond secured circulation out
standing. Said notes to be acceptable in
the payment OF all obligations the same as
bond-secured bank circulation and redeem
able at any subtreasury or designated de-
pository.
Ninth-These notes shall be issued in de-
nominations OF s.. So $50 $50 and 500 as
craving 10 be paid by the hanks taking
them out
Tenth-There shall be nothing ON the
notes designating the national or the num-
Der OF the bank issuing them but they
] shall he numbered a nj ,.rifI -.