Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-11-11
NEUTRALITY-SUSPICIOUS.
Leading Financiers of the Coun-
try to Discuss a Plan.
WILL MEET HERE TOMORROW
Matter is Now Said to Be Taking Def
mite Form.
PERSONNEL OF THE COMMISSION
Issues by National Banks Upon Appli-
cation Hot to Exceed 80 Per
Cent Of Circulation.
WILL MEET HERE TOMORROW
PERSONNEL OF THE COMMISSION

~S~AS w. SAAS9A1s&ox&s
gathering Of leading financiers Of the
country that, 1t IL declared. will attract ma
tfcnal attention IL to be held at the New
Willard tomorrow at noon. A plan for
currency reform expected to be Of great
service to the business world In times of
stringency in the money market viii be
discussed.
The matter has long been under consid-
GRAFTON and 10 now taking definite form. At
| the recent meeting of the American Bank
ers' Association In st. Louis the proposition
| was taken up by its legislative committee.
(The New York Chamber Of Commerce has
been engaged with the same problem. At
the meeting Of the association in st. Louis
the members OF the legislative committee.
with ten other prominent bankers, consti-
tuted q commission to meet a special COM
mittee Of the New York Chamber Of Com
merce in this city to take the matter under
Amusement and to agree. If possible on a
plan to recommend to the national legisla-
ture.
In Times Of Stringency.
In Congress there has been some discus
sion OF plans to meet the necessity for cur
rency expansion that exists in times Of
stringency In the money market. No plan
has been agreed upon. and 1t is expected
that the fnanciers vino will meet here to-
morrow will do much to e1ucidate the sub
ject and to point the way toward legisla-
ton that will meet general approval SO
that 1t may be enacted by Congress at an
early day.
The fnanciers who will assemble here
are the following:
Representing the American Bankers As
MISUNDERSTANDING committee: Mr.. Ar
thur Reynolds. president Of the Des Moines.
Iowa, National Bank. chairman: Mr.. E. F.
Swinney. president First National Bank.
Kansas City. Mo-; Mr.. Joseph A. McCord.
cashier Third National Bank. Atlanta, Ga;
w. v. Cox. president Second National Bank
Of this city; Mr.. John L.. Hamilton, vice
president Hamilton and Cunningham banks
of Hoopeston ILL., Additional members of
the commission appointed by the associa-
ton: Mr.. A. B. Hepburn, president Chase
National Bank. New York. who has been
chosen chairman Of the commission; Mr..
James B. Forgan, president First National
Bank, Chicago; Mr.. Joseph p. Talbert, vice
president Commercial National Bank of
Chicago: Mr.. Charles H. Huttig. president
Third National Bank. st. Louis; Mr.. Festus
J. Wade, president Mercantile National
Trust Company. st. Louis; Mr.. John Per-
rim, president National Bank of Indian
apolis. Ind: Mr.. Luther Drake. president
Merchants National Bank. Omaha; Mr..
Sol Wexler. vice president Whitney Central
Bank. New Orleans: former Gov. Myron I.
president Peoples National Bank. Pitts
burg. Pa.
Special currency commission New York
Chamber of Commercials. John Claffin,
chairman; Frank A. VANDERBILT. Isador
Straus, Dumont- Clarke and Charles A. Co
nant; Mr.. Joseph Francis Johnson. secre-
tary. ; - .s' = .
Will Have Tentative Plans.
When the members CT the commission
meet they will have before them the tenta-
tive plans both of the legislative committee
of the American Bankers Association and
OF the chamber of commerce. The plan
of the legislative committee, which has not
been acted upon by the American Bankers
Association, provides, in brief. for the APP
pointment of currency commission of
seven members by the President to be con-
frmed by the Senate, the commission to
be non-partisan. The controller OF the
currency Is to be member OF the commits
sion. OF the six other members two are
to be appointed for four years, two for
eight years and two for twelve years. and
thereafter members to be appointed for
twelve years and not to be eligible for re-
appointment.
The plan provides for credit or clearance
currency to be Issued by national banks
upon application to the commission, not
to exceed 80 per cent of the total circula
ton Of the bank applying for such issue.
The commission is to be the judge of the
necessity for the issue Of such currency
and the time during which 1t may con-
unue in circulatl ton.
Permitted to Issue Credit.
Banks that are permitted to issue such
credit or clearance currency are to deposit
in the treasury or in a depository to be
designated by the commission securities
sufficient to properly cover the amount of
the currency issued, and are to pay tax
of per cent per annum.
Various provisions are made in order that
| the plan may work easily and provide. the
country with currency in times of strin-
gency without producing imitation. Taxes
paid by the banks for the issuance of this
currency are to be held in the treasury up
to certain amount, but accumulation in
excess of that are to be invested by the
Secretary of the Treasury in gold against
which gold certificates are to be issued
80 that there may be no accumulation of
money in the treasury to add to the strin-
gency in the money market.
The Chamber of Commerce of New York
has heretofore discussed a plan for the
formation OF a central bank in order to
carry out the idea for prevention of fnan-
cial strngency, but it is believed that that
plan has been practically abandoned be-
cause of objections urged against it. The
chamber has considered a plan for the
issuance to banks of this emergency cir
culation up to 35 per cent of the banks
capital with proper guarantees and with
provisions for the retirement of the emer-
gency issue. They also advocate the repeal
of the provision of law restricting the
month.
No Difficulty Expected.
1t is believed there will be no great diff
ficulty in having the representatives Of the
American Bankers Association and the
New York Chamber Of Commerce agree on
a satisfactory plan to be submitted to Con-
gress The plan for enacting legislation
of the kind in question is receiving wide
spread attention from leading financiers in
all parts of the country, and serious con-
sideration of the matter by Congress Is
expected It is said to be likely to cause
considerable discussion especially in the
Senate. but the advocates of the legisla-
ton believe that the necessity for 1t by the
business interests of the country is SO pro-
nounced that it will be enacted without
unreasonable delay.
1t is not known how long the commission
will be in session here. but 1t is desired to
prolong the sessions sufficiently to permit
the members to arrive at satisfactory
agreement as to just what should be done.
ON LONG BRIDGE.