New-York tribune., 1907-12-20
CURRENCY REFORM UP.
Joint Resolution IN Congress to Pay
Public Dues by Checks.
from TIE Tribune Bureau.1


Washington, Dec. ia proposition which has
been persistently urged by James @ Hallock. of
New York. for some months. whereby the business
of the Treasury Department would be made to con-
form to the methods of modern business institu-
tions. took concrete form to-day through Repre-
sentative Hill. of Connecticut He introduced In
the House concurrent resolution declaring 1t to
be the sense of the Congress that the Secretary
Of the Treasury should in his discretion and under
such regulations he may prescribe. permit the
receipt of certified checks of banks in payment of
all public dues, the deposit of the same in depos-
itory banks. and the drawing OF checks against
such depository accounts by the disbursing ohcers
in sub-Treasury cities. well as elsewhere
This resolution was referred TO the COMMITTEES on
Ways and Means, of which Mr.. Hill is a member
and Mr.. HaIlock will be granted a hearing by that
committee. Representative Cocks. of New York
introduced bill similar in form. which was re-
ferred to the committee
The members of the House understand that Sen
ator Aldrich regards this move with approval ana
predict favorable action one or the other OF the
measures The purpose OF the resolution is TO give
to the Secretary of the Treasury the moral support
OF Congress in reform which Mr. Cortelyou mas
for some time regarded with favor. This Will con-
sist allowing the collectors of customs IN SUD
Treasury cities to deposit their collections directly
in national banks Is now done IN ali out SUD
Treasury cities. and now do the COLLECTORS oi
internal revenue everywhere. TO accept ceruneo
checks, and to authorize the disburstng omcefs OF
the government pay the governments bills Win
checks drawn against such deposits
Such a course would obvate that depleuon Oh Ine
bank reserves which is inevitable under the present
system. AS the business OF the government Is now
conducted. collectors OF customs in Suo-IreasurS
cities are required deposit their receipts with the
Assistant Treasurer. They are not permitted 10
accent checks-except that in New YORK they 90 SO
when each bank has deposited with the Suo-Ireas-
ury gold in sufficient amount to cover such cheeks
as may be drawn against it-and when the bills OF
the government are paid 1t IS with Treasury war
rants and only after sum equal to the totai war
rants and checks issued has been Withdrawn from
the banks and placed IN the several suotreasuries
ALI the advantage and relief to the currency wnch
is afforded by the of checks in ordinary ousi-
ness transactions is thus lost and federal uansac-
tions invariably operate to deplete the bank re-
serves.
II is easily seen that under the proposed system
a bill for customs could be paid to the government
bv check and the government might IN turn pay OH
an indebtedness Of the government with checR,
and the transactions would involve no drain on the
bank reserves which would have remained intact
throughout.
AS the Secretary OF the Treasury has already IN
dicated his favorable attitude toward the PROPOSED
reform It is reasonable assumption that II the
resolution is adopted by both houses or
Congress the new method will be promptly insti-
tuted.