The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-10-19
BANKERS OFFER
CURRENCY PLAN
Closing Session Of Convention
Marked by Submission Of
Clearance Scheme. I"

st. Louis, Oct. 19.-There was not 1
the usual diminution Of attendance on
the last day, when the final session OF
the American Bankers association con-
vention was called to order this morn
ing This was due to the fact that the
currency question had not yet come
before the convention. In expectation
Of heated and possibly of acrimonious
discussions, full delegations were pres
emit and many of the delegates were
accompanied by their wives.
A4 Credit Currency Plan.
The plan for a credit or clearance
currency, proposed by the bankers
legislative committee, is as follows.
First-That non-partizan commls-
sion of seven be appointed by the presl-
dent and confirmed by the senate. The
controller of the currency shall be
member Of the commission and the
first six members to be appointed, two
for four years, two for eight years and
two for twelve years and for twelve
years thereafter; said members not TO
be eligible for reappointment.
Second-That credit or clearance cur cur,
bank or a majority Of national banks
Of any city upon application to the
commission, in any amount not TO eA,
coed 50 per cent Of the bond-secured
circulation outstanding. -,
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 applicable to the re,
demption of bond-secured notes shall
apply to these notes in a like manner
except as to the amount that may be
redeemed in any calendar month.
= Tax Is Demanded.
: Fourth-That the banks issuing credit
or clearance currency must pay tax
during the time fixed by the commits
sion for its redemption at not less than
IS per cent per annum. The failure OF
The bank to deposit with the treasury
or repositories designated by the com
mission the amount necessary to retire
the credit or clearance circulation out
standing shall be increased at the rate
of ! per cent per annum for each addl-
tionai week that the bank fails to make
the necessary deposit for it's redemp'
ton, no fraction Of a week to be con
sidered in computation:
Fifth-The tax on the clearance cir
oulation, after deducting the expenses
Of the commission and the manage
nent Of this department shall be de.
posted with the treasury of the United
States as fund known as the 'bank
credit note circulation fund.- unit
this fund equals per cent Of the bond
secured national bank circulation out
standing. All profits in excess Of -thi:
shall be invested by the secretary o,
the treasury In gold at the end Of eacl
fiscal year, to be held in the treasury
as the basis for an issue Of gold Ger
tifcates which shall be used in the re
tirement of the uncovered treasur,
T. notes. The "bank credit note circu
lation fund.- to be used for the imme
date redemption Of credit or clearanc
currency notes outstanding of an.
failed bank, pending realization on tn
securities deposited and to cover an.
losses that might occur in realizing O.
such securities.
> Deposit Required.
Sixth-Before any bank can isssl
credit or clearance currency, it. mus
deposit with the treasury department
or repositories to be designated by tn
commission approved securities Of tn
currency's department. to an amount c
at least 10 per cent in excess Of Giro,
lation to be issued. -.
Seventh-The credit or clearance GU
rency shall be retired gradually at sue
times and in such amounts as shall b
directed by the commission by depOsl
ing funds with the trade or such d.
positories as the commission may direc
f.. Eighth-The credit or clearance Gu
rency notes to be printed and a
amount to be kept ready for emerge1
cy distribution by the government equ
in amount to 25 per cent Of the bon
secured bank circulation, outstandin
Said notes to be acceptable in the pa
ment of all obligations, the same
bond-secured bank circulation, and r
deemable at any subtreasury or desi
mated depository, -
Banks Pay for Engraving.
Ninth-These notes shall be issue
In denominations Of $6, $40, 500, S!
(, and $100, as desired, and the expens
Of printing and engraving to be pa
by the banks taking them out.
Tenth-There shall be nothing on II
notes designating the name or the null
Der Of the bank issuing them, but tn.
shall be numbered and registered
the treasury department. and the col
mission. SO that they may be able
know at all times the amount Of su
notes any bank has outstanding.