The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-11-21
CURRENCY PLAN OUTLINED \
BY A WESTERN FINANCIER
BELIEVED TO BE FEASIBLE
Scheme Involves u. S. Depositores in Every City With
Regulated Interest Rate and Federal
Director as Supervisor.

Chairman Fowler, Of the House Com
mittee on Banking and Currency, has
received an outline Of a new and inter
esting currency plan. prepared by one
OF the leading lawyers and bankers OF
the Southwest, which contains some en-
tirely new ideas The plsa is believed
by students &C currency problems TO
be practicable and TO open the way to
a possible agreement, in Congress, on
some aspects which have heretofore been
the subject OF sharp and seemingly in
eradicabIe differences of opinion
The proposal was developed by B. p.
waggener. OF Atchison. Kan. Mr..
Waggener is president Of one of the
large banks of the Southwest, at Atchi-
son; is the legal representative Of the
Gould interests in the Southwest, and is
a member OF the Kansas State senate.
He is a lifelong Democrat and ranks
as lawyer. legislator, and banker among
the leading men OF his section. His plan
is considered certain to receive attention
during the coming Congressional dis
cussion Of currency, and to be very like
~ TO influence the conclusions of the
committees.
Mr. Waggener is one OF those finan-
ciers who believe that as. the Govern
ment is hopelessly in the banking busI-
ness and has no prospect Of getting
out. 1t ought 10 make itself more efrec-
lively and usefully felt. He. therefore.
proposes, in a letter 10 Chairman
Fowler:
Mr.. Waggener's Plan.
In al
10000 or over. one or more national
banks shall be designated as Govern
ment repositories. In each bank so
designated a Government director
shall be appointed. whose tenure OF
Office and duties shall be prescribed by
law. and his salary to be paid by the
bank Of which he Is a director. Each
such bank shall be prohibited from re-
Ceiving any interest on general de-
posts in excess of 2 per cent except
In a savings department, the deposits
in which department shall not be sub
ject to check; rates Of interest 10 be
allowed as may be fixed by the act
authorizing such department.
The Government funds to be deposited
in such designated banks on the requisi-
ton Of the Government director. sub
lect 10 the approval OF the Secretary
Of the Treasury, and without any Sc
curity TO the Government, except as
hereinafter stated. All Government de-
posts 10 draw per cent interest on
daily balances, and the interest on such
deposits to be placed in the United
States Treasury to the credit Of bank
guarantee fund and used only for the
purpose Of protecting the deposits 10
such designated banks Taking the
present Government deposit in national
banks as a basis, In a very short period
OF time the per cent interest on such
funds would establish an enormous
guarantee fund.
In Case of Suspension.
In case Of a suspension OF a desig-
mated bank, the Government to pay
from such guarantee fund all Of the
deposits in sucn bank, including the
amount Of the Government deposit; upon
such failure or suspension, the Govern
ment director of the bank, by virtue of
his office. to become the receiver 10
wind I'D It's affairs, under the direction