The Washington herald., 1906-12-15
LID ON MONEY LAWS
Senate Fears Sweeping Cur
rency Legislation.
HOPE FOR NEEDED RELIEF
Bill with Two Important Features
May BE IntrOduced-Secreta Shaw
Discusses the Financial Situation
Before the House Committee on
Banking and Currency.

The Senate Is not disposed to enact
any sweeping financial legislation at this
session. Its leaders have already talked
the matter over. The Finance Committee.
Senator Aldrich, chairman, Will not re-
port any bills that provide for emergency
currency. It's members think there is
too much difference OF opinion among
fnanciers to warrant the attempt
Senators on the committee do hope for a
financial bin along two lines, because they
think there will be little II any OBJ
lection TO II. One feature of the bill will
require that all government receipts may
be deposited In national banks. At pres
ent internal revenue receipts may be
thus deposited, but receipts from Gus
toms must be deposited In the Treasury
or one OF the subtreasuries.
A second feature Of the bill will be a
definition of the bonds which the Secre-
tary Of the Treasury may accept as secur-
ity for deposits. AS now planned, this
provision will be drawn to legalize the
action Of Secretary Shaw IN accepting
various State and municipal bonds.
AIdrIch viii Offer Bill.
Senator Aldrich will probably offer a
bill soon embodying the two features
indicated. In the designation of bonds it
will follow the lines Of a bill Ito further
provide for the safe-keeping Of public
money" which he introduced February II.
1903. and which was reported by him with
amendments to the Senate That bill
authorized the acceptance of any bonds
OF State. or Of any city OF fifty thou
sand inhabitants, or county which had
been in existence for twenty-five years.
and has not defaulted on any part Of its
debt for ten years. II also authorized the
acceptance Of certain first mortgage rail-
road bonds.
Secretary Of the Treasury Shaw dis
cussed the financial situation before the
House Committee on Banking and Cur
rency yesterday. with particular refer
ence 10 the recommendations OF the Bank
ers' Association as to the method Of pro-
viding a more elastic currency for the de-
mands of business.
Mr.. Shaw declared that there could be
no doubt as 20 the urgent necessity for
legislation 70 provide more currency. and
said that ii was a problem with which he
had long been struggling. and that the
condition at times caused him no little
concern
shaw DisapprOves Bankers Plan.
He said the plan suggested by the
bankers would not meet the necessities
Of the situation. He declared that 1t
would be ineffective in a large measure
for the purpose intended; that 1t was un-
scientific. and incumbered with too much
machinery for the limited results which
he believed it would accomplish. He did
not directly antagonize the scheme but
sought 10 point out that it would not
go far enough 20 meet the situation.
The point which he sought most TO I'm
press upon the committee was that all
Of our currency should be made more
elastic, and that the elasticity should not
be confined alone 10 the notes proposed
to be issued under the bankers scheme.
He suggested that a more advisable
plan would be to issue s2oo. 900, 90 Of the
same kind of notes as the banks are
/ now issuing. Of exactly the same appear
ance and guaranteed by the government,
/ and redeemabIe the same as other notes,
and protected by a guarantee fund.
He declared that he felt there was no
| danger of imitation IL both the bond
/ secured notes and the credit notes were
alike made elastic. He said that the
/ bankers plan would be a step toward
| relieving the demand for a greater elias
ticity at certain seasons Of the year, but
he urged upon the committee the de-
STABILITY Of framing measure which
would give elasticity to both forms Of
bank notes.
Comptroller Of the Currency Ridgely
will be heard by the committee to-day.