Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-12-03
CORTELYOU'S PLAN FAVORED
Leaders Of House Inclined TO Push
Currency Legislation.
TO HEAD OFF RUNS ON BANKS
senators' Opinion Not Yet Capitalized
on Financial ouestions---COm-
mittees WIN he
Changed.
CFrom a stan Correspondent.)


financial broth and too many recipes for
making the mixture congress will at
the coming session do something with the
financial legislation which has been talked
OF so much during the past three or four
years
Unfortunately there are at least dozen
men in the house. each with scheme of
bis own. and it always has been difficult
10 bring about anything like unanimity Of
action in the committee on banking and
currency, in which body the panacea for
financial ills must originate. But this time
It looks as though the leaders of the house
win insist upon the adoption in modified
form at least of the suggestions of Secre-
tary Cortelyou. That\ gentleman has given
a great deal of thought and consideration
to the outline Of a currency bill which
meets with the approval Of the financial
interests of the country as well Of the
president. This bill will be offered Just
as spon as the committees are appointed;
and It is understood to be the purpose
Of Speaker Cannon to change the per-
sonnel OF the committee on banking and
currency so as to assure less pickering
and fewer controversies in that sub-body
Of the house than has been the rule in
the recent past. Representative Fowler
OK New jersey VINO was GlAlIudNn VI AAlAH
committee in the last congress. openly at
tackled the action of Secretary Cortelyou
in authorizing the issuance Of Sl000OO,o00 of
treasury certificates. and his untimely crit
icism will. It is believed, result in his
elimination as a factor in the preparation
Of financial legislation.
Senators of Many Minds.
And yet while it is possible for the
leaders of the house to secure the early
adoption Of currency bill which will
meet with the approval Of the admins
tration, the outlook for the endorsement
OF the action OF the house by the senate
is by no means bright There is scarcely a
senator who has appeared in washington
thus far who has not given utteranoe to
views upon the financial situation, and
these views indicate that the divergence
of opinion among the members Of the up
per branch Of congress is as great as Il Is
among the members of the house. But
while the house can be controlled by the
committee on rules. there Is no olot1re In
the senate; and even though the speaker
should be able to get a financial bill
through the lower branch II will be months
before such action can be taken by the
senate.
In the meantime there are likely to be
number Of measures proposed. not only
for the cure OF the financial Ills from
which the country has suffered during the
past few weeks. but also with a view 70
making runs on national banks praotic-
ally impossible. and this viii BE done
by some sort OF an insurance proposition.
Senator Thomas H. Carter OF Montana
voiced the sentiment OF a number of mem
bers OF the senate in both political bodies
when he expressed the view that runs on
banks might be eliminated by a very SIM
pie process
To Avoid Runs on hanks.
During the forty years of the existence
Of national banks" said Senator Carter,
''the loss to depositors has amounted to
less than one-tenth OF per cent OF the
average deposits. II would seem, there
fore, that II a tax OF, say, one-quarter OF
per cent Of the average yearly deposits
should be assessed against the banks
holding national charters a fund would
thereby he created which would enablo
the comptroller Of the currency TO abso-
lutely insure depositors against loss, ana
with such assurance the depositor would
never become alarmed to a degree suf-
icieAt to induce him to start a run Con-
fidsnce in the national banking system
would by this means be so firmly estab-
lished that the conditions which have cz-
listed during the last month or six weeks
would never occur again. Thousands of
millions OF deposits have been withdrawn
and placed in safe deposit vaults, old
stockings and teapots, with the result
that the circulation has been materially
reduced. Now, II the depositor OF a ma
tional bank could be assured that his
funds were safe he would not be alarmed
] Iar-1.a d
rush to the bank to withdraw his cast
one-QuRreer OF per cent on deposit
would be sufficient 20 create a fund when
would be In the nature Of a governmental
insurance. and this tax could be reduced
as the funds accumulated In fact IL
would be easy to provide that the tax
should cease altogether when the surplus
In this insurance fund reached the stage
where further additions should be un-
necessary"
Provisions Are Higher.
While the housekeepers OF Chicago,
New York and other centers Of population
were eiated on Thursday morning when
they read that the price OF meats and
poultry had been reduced several cents
pound the people OF the city Of Wash
ington were cOrrespondingly depressed.
and tie reason Is easy to understand.
Some two or three weeks ago the press
dispatches from Omaha announced that
I the CudAhy Packing company had re-
duosd the wholesale price Of meats, ana
the following day the retailers OF wash
ington increased their price to the con-
sumsr. But now while It is reported that
Armour & Company have issued a circular
noting general reductions all along the
line in the price Of their products the
Washington housakeepsT fears Il means a
further increase 70 them Il Is a notori-
Gus fact that right here at the national
capital where the trust machinery is put
IN operation the ciizens and sojourners
are held up By the retail provision trust
and compelled TO pay higher prices for
similar goods than are paid by any other
city OF equal size in the United States.
ChFistnas Excurstoas.
Every year or two the commercial people
OF Washington take a splurge and decide
to branch out 70 capture trade from all the
surrounding country. This year a commit
| tee OF the Washington Chamber OF Com
mercs has been formed FOR the purpose OF
inviting the residents OF the towns and
hamlsts IN Virginia and Maryland 70 come
20 the capital for their christmas shop
ping. Columns and columns Of matter
has been printed in the local paperr In