The Birmingham age-herald., 1906-04-14

New York, April 13.-It was learned to- day that plan is under discussion among certain bankers in this city to establish bank with a capital stock of $50,000,000 for the purpose of regulating money rates and preventing periods of money strin- gency and accompanying high rates of interest.
 The movement was given some impetus by the recent stringency in the money market. The name of the National City bank was mentioned in connection With the plan, and one suggestion was made that the stock of that bank be increased by s25 GOO or. s5o,oOO,oOo in order to give t control of the financial situation in this city sufficient to prevent the reeur- renee of periods of extreme high rates for money.
 Another suggestion was that trust company be organized under the direction of the National City bank. Officials of the bank declared, however that they were not taking more than a passing in- terest in the various plans.
 Regulate Gold Movements. Some financial concerns which have taken an interest in the movement assert that such an institution might exercise considerable control of the foreign ex- change situation to the extent of regulat- ing imports and exports of gold some what as does the Bank of England. A leading bank official, however, said that the only cure for such money evils as the New York market has recently witnessed Jax in, ha eta Iicl1 of I,an which shall he given the power of issue in times of emergency.
 It was ascertained today that series of questions bearing upon this subject had been forwarded by the special cur rency committee of the New York State Chamber of Commerce to the clearing houses of the leading cities of the United States. The bankers are asked to notify the New York committee whether they believe that central note-issung bank similar to those in France, Germany AustriazHungary and other countries in Europe with branches in leading cities and with the power to discount for na- tional banks and state banking institu- tions, but not for individuals, would be q better solution of the present currency problem than plan permitting all banks to issue notes against their resources
 Also the following questions:
 Questions Are Propounded.
 Would a central note issuing bank tend to diminish fluctuations in the rate of interest. to prevent recurring periods of monetary stringency, and to lessen the evils incident to financial crises?
 Should such bank be made the fiscal agent of the government in receiving government funds, and paying treasury drafts, as are the central note issuing banks of Europe?
 Would the operations of such a bank interfere unduly with the business of ex- isting banking institutions provided it dealt only with banks and not with in dividuals?
 Should the government appoint the of ficers of such bank and a majority of the board of directors, or should tho con- trol rest with the stockholders?
 Do you think the headquarters of such 3 bank should be in Washington or else- where?
 Do you believe there are sound poIi- tical objections, apart from its economic merits, to the creation of such a central bank?
 Do you believe that the sub-treasury system is a disturbing factor in the money market?
 If so, do you believe that provisions should be made for regular deposit in the banks of the surplus of government funds above d reasonable working bal ande upon such terms as will afford safety and perhaps a small profit to the treas ury?
 Do you believe that national banks should be authorized to issue a certain proportion of currency upon their general resources such notes being secured In case nf fail 1a.r O1Il r.a n fxf nr nf har wise?
 It is advisable if additional bank note circulation is authorized, to subject it to