The Montgomery advertiser., 1906-11-18
HAVE SOLVED THE PROBLEM Banker Talks on Pro- posed Plan. ISSUE OF CREDIT NOTES Wcxlef Discusses Legislation with
 Birmingham Men.
 s--S-S New OrIeaniah Tells Finaneiers of Meanures which Are to Be Pre-
 sehted to Next sessiOn
 of Congress.

rtirminghan1, Nov 17.--(special IA f,1I ana complete explanation Of the plan of the currency reform agreed upon by the committees Of the Amerl- can Bankers Association and the New work Chamber of Commerce.. which met in yvaahinetn four days this week, was made today by Sol Wexler, mem her of the committee who was in BiF- rnineham on his way home to New
 Mr. wexler is President of the whitney Central National Bank Of New Orleans. considered one or the strongest financial institutions in the United States. While here ne was en- tertained by Otto Marx, the banker, w. p a Harding, President of the First National Bank, and other leading fnan- ciers of Birmingbam.
 T think we have solved the money problem" said Mir. Wsxler. fand the only thing that remains to be done Is the passage of a law by which the proposed: credit notes may Do issued. The plan briefly stated provides for more elastic currency. a problem that Aas confronted the American Bankers Association for many years. The re- port of the committee is qnanimous and it was approved by the United states Treasurer. the United States Coroptroller and J J. Fowler, chair man of the Committee on Bahking and Finance of Congress. Every member of the committee was of the opinion that the provisions adopted and published in ali the paperse throughout the counz try Is a concrete plan for improved currency, and there Is no question in my mind but that Congress will adopt A law in line with our suggestions.
 Present Plan.
 '"rhs present plan" continued Mir { WexIer, lis that national banks may take out notes in addition to those atI- thorized under the present law which notes may be issued under q tax of 1-2 per cent. per annum to the amount of 70 per cent of the bond secured cireu- lation, or present circulation of the iss suing bank, but shall not exceed 25 per cent of the capital The provision establishing sach Q relation between the bond secured notes authorized by the present law and the additional notes proposed is for, the purpose of preventing any tendency on the part of banks to sell GBvernment bonds now held to secure circulation. such action is taken in order to prevent any tendency to depress the market for Government bonds. tho values of which under all circumstances must be main tained.
 Tt is not proposed under the plan adopted 10 nave any part or me aS- sets of the bank specially pledged to secure the notes. They will be pre- tected. however, by the same legal reserves as are required by existing laws to be held against deposits; name- ly. in reserve cities, 20 per cent and in non- reserve cities. 10 per cent I may say fin passing that Birmingham Is a non-reserve city.
 The claim of the notes of a failed bank upon the assets 4 of the bank should not be given prior lien to the lien of the depositers. It is cert tain that the guarantee fund in itself with the addition of a pro rata claim upon the assets with the deposltors