Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-12-04
LOOKING TOCURRENCY
Six Plans From Which a Law
May Be Made.
THE SENATE AND HOUSE
Committees to Work Together to
Perfect q Bill.
ALL HAVE SOME OBJECTIONS
Perhaps, However, Out Of the Lot
There May Be Ideas ON Which
Agreement Can Be Made.

Congress has settled down to an at
tempt to solve the currency problem.
The House committee on banking ana cur
rency was appointed yesterday by speaker
Cannon, and the Senate committee on
finance held it's initial meeting. nara
work is ahead Of both committees, ana no
man can foretell what the outcome VIII
be--nor when.
There are SIX general propositions LOT
the relief Of the currency situation wnlcn
have been advanced from various sources.
Among them q choice will be made-per-
haps There are a score of other sus-
gestions, and undoubtedly more will be
forthcoming as discussion in Congress
and the press proceeds. The six Leading
plans which have been advanced may De
summarized popularity as follows;
The Central Bank Of Issue.
This is a suggestion which originated
with the New York Chamber OF Com
MERGE and has the Endorsement OF mat
body 1t is favorably entertained by
some prominent senators and representa-
tives, and will be freely discussed. II
bank Of issue. capitalized at not less tna9
sac. OOO, 900, which will carry large golo
reserve. This bank will be CUSTODIAN OF
the government reserve OF metal ~ WIN
act as the governments agent In re-
deeuaing all kinds Of money and as IT'S
receiving and distributing agent. 1t Will
perform the functions now delegated to
the subtreasur1es. The bank Is 10 be
owned in part by the government, by other
banks and by private stockholders, out
the government is to have control and abb
solute management
American Bankers Association.
The plan which has been indorsed by
the American Bankers Association con-
templates an emergency credit. cur
rency. 1t permits any national bank
which has been going for a year and
which has a surplus Of 20 per cent OF its
capital. to issue additional circulation
notes in amount equal to 40 per cent OF
its bond-secured circuIation. This is to
be done without putting up security, but
the issue is to be subject to tax Of "a
per cent per annum on the average
amount outstanding. If necessary. It
may issue further amount, up to i'm
per cent Of Its capital. subject to tax OF
per cent.
The Asset Currency Plan.
This Is also a Recommendation of the
New York Chamber Of Commerce. It
provides that any national bank whose
bond-secureds circulation equals 30 per
cent Of its capital stock may issue addi.
its capital, subject to tax ranging from
per cent to q per cent.
Mr.. Shav's Proposition.
Mr.. Leslie NJ Shaw. former Secretary
of the Treasury and now president OF the
Carnegie Trust Company In New York.
favors an emergency currency circula-
ton. He would authorize national banks
to issue additional circulation up to 50
per cent Of their capital, without deposit
OF security. IN order to assure its re-
demption when the emergency which
called 1t forth had passed he would Inn
pose tax Of S per cent upon the issue.
Treasurer Treats idea.
This is opposed to the credit currency
system 1t contempiates bond-secured
emergency notes. It would authorize
national banks to issue 50 per cent OF
their circulating notes on security other
than government bonds. This circula-
ton would be regarded as emergency
circulation and would be compulsorily re-
tired In four and ak months from Sep
tenrber of each year. after the crop
moving demand had been satisfied
+ The Credit Currency System. .
This would authorize national banks to
issue additional circulation with their
credits" as security. That is, to con-
vert bank book credits or deposits sub
ject to checks into credit currency.
The foregoing are the essential prop
ositions for currency reform over which
the lawmakers differ Each plan has Its
advocates. and in the opinion o. OPP
ers themselves are wide apart in optn-
ions and there Is wrangling and dissen-
sion among them over the extent to
which conservatism ought to be exercised
and the amount Of laxity which might be
permitted without endangering the sta
bilty Of the national bank currency.
Bankers Widely Divided.
A very striking illustration OF the d.
versity OF views among bankers is fur.
nished by the Wall Street Summary. a
financial publication. which is making a
poll of the banks of the country on thei.
choice OF these proportions for currency
| ed replies from 2S8 banks. scattered all
over the country. The answers were d.
vided as follows: For the central bank,
| 90; for the American Bankers plan. 81;
for the asset currency. ~; for the Treat
plan. IS: for the Shaw plan. 81; for the
| credit currency. 4; declined to answer, "a.
| In addition to the foregoing, sixteen
''other plans were suggested by the
| bankers. And the polling has just be-
| gun.
Meeting Of House Committee.
! The House committee on banking and
currency met today for the first time
since its reorganization. Before the COM
| mittee was called to order Chairman
Fowler stated that the only object Of to-
days meeting was to permit the old men,
| bers to get acquainted with the new ones
and possibly to briefly discuss the situa-
ton in an informal way. He declared
| that he had no financial bill In prepara-
| ton
| Contrary to general expectation. Sena-
tor Aldrich, chairman OF the committee
| on finance Of the Senate, will not intro
duce a currency bill His plan Is to re-
ceive all suggestions for currency lekisla-
| ton. to lay them before his committee
| and to have them fully discussed. In or.
| der that the committee itself may frame
q bill which may be reported to the Sen
! ate.
| The House committee on banking and
currency. which was appointed by Speaker
Cannon yesterday, was in session for