Los Angeles herald., 1906-10-20
PROPOSE NEW CURRENCY PLAN
Delegates Discuss Merits of Various
Suggestions Made
IN Associated Press.

By Associated Press.
! ST. LOUIS, Oct. 19.-The plan for a
credit or clearance currency proposed
by the bank legislative commission is
as follows:
First. that currency committee of
seven members be appointed by the
president and confirmed by the senate
this commission to be non-partisan
and the comptroller of the currency to
be a member.
Second, that a credit or clearance
currency may be issued by any nation
al bank 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
circula tion outstanding.
Third, that the necessity for credit
or clearance currency and the maxi
mum time that it may remain out
standing shall be determined by the
commission.
Fourth, that the banks issuing credit
or clearance currency must pay a tax
during the time fixed by the commits
sion for its redemption at not less than
per cent per annum.
Fifth, the tax on the clearance cir
culation, after deducting the expenses
Of the commission and the manage
ment of this department, shall be de-
posted with the treasury of the United
States as fund known as bank
credit note circulation fund" until this
fund equals 5 per cent of the bond
secured national bank circulation out
standing.
Sixth, before any bank can issue
credit or clearance currency 1t must
deposit with the treasury department
or repositories to be designated by the
commission, approved securities Of the
bank as passed upon by the comptrol-
Ter of the currency's department, to an
amount of at least 10 per cent in ex-
cess of circulation to be issued.
Seventh, the credit or clearance cur
rency shall be retired gradually at
such times and in such manner as di-
rected by the commission by deposit
ing funds with the treasury depart
ment or at such repositories as the
commission may designate.
Eighth, the credit or clearance cur
rency notes to be printed and an
amount to be kept ready for emergency
distribution by the government equal
in amount to 25 per cent of the bond
secured circulation outstanding. Said
notes to be accepta BILE In the payment
Of all obligations the same as band
secured bank circulation and redeem
able at any sub-treasury or designated
depository.
Ninth. the notes shall be issued in
denominations of $5. $40, $40, $50 and
500 as desired, the expense of printing
and engraving to be paid by the banks
taking them out.
Tenth, there shall be nothing on the
notes designating the name or the
mum ber OF the bank issuing them but
they shall be numbered and registered
with the treasury department and the
commission so that they may be able
to know at all times the amount OF
such notes any bank has outstanding.
Advocates Commercial School
Joseph F. Johnson. dean of New
York university school of commerce,
I'm an address, urged the necessity of
the establishment of a commercial
school. that young men may be given
business education along educational
lines. The report of the bank execu-
tive committee presenting a plan
recommended for credit or clearing
currency was taken up as a special
order of business.
The report was read by Arthur Reyn-
olds, president of the National bank
Of Des Moines, chairman of the COM
mittee.
At the conclusion of the reading of
the report resolution was offered by
William George of Aurora, Illinois, that
the report of the committee be adopted
as a whole, reserving the right to leave
the subject open TO general discussion,
Instantly delegates were on their feet
protesting. and G. B. Hart of Wheeling.
w. Va. made motion to take up the
report and discuss the ten sections of
the flexible currency plan presented ad
seriatim. President Hamilton declared
the motion out of order and that the
resolution Of Mr.. George was before
the convention. The chairs ruling was
protested and on a viva voce vote II
was not sustained. Then G. Z. Hart
again made his motion to consider the
proposed currency plan, section by sec
tion. and II was carried.
Vote Is ReeonsIdered
Immediately another motion was car
ried TO reconsider the vote. The plan
was then placed before the convention
for general discussion. President Ham
iiton remarking that he felt that the
delegates knew very little about parlia-