New-York tribune., 1907-09-27
FOR CREDIT CURRENCY.
AMERICAN BANKERS 1CT
4pmruc Commission Plan 4fte'
Lfcerv Debate an ConuentiOn.
rRr Telegraph 20 The Tribune. ]


vas taken in the convention. decided approve
the report Of the currency commission, reconnend-
!ng the plan of a credit currency. This extremely
Important action taken ar the close OF = dis
cussion in which both sides OF this long debated
question were heard. the principal speakers being
A r. Hepburn. president OF the Chase National
Tank of New York. VINO outlined the chief fea'ufeS
% the currency plan OF the commission. OF WhIch
he .s Chairman presented arguments for the plan
and replied to possible objections to II; Andrew j.
Frame president CT the Waukesha National Bank
of Waukesha Wis. who acted as spokesman for the
opponents of the measure. and congressman
Charles y. Fowler. of New Jersey, chairman Oh
the House Committee Banking and Currency
p'ho in exceedingly effective eEtempoTaleo'Is
speech replied to the several points made by MT
Frame.
The currency commission authorized by the
last annual convention Of the American Bankers
Association. at which the sentiment IN favor oil
credit currency far from unanimous Inc
rractjcal rnifcatfon cr that sentiment within the
last twelve months has followed a vigorous cam
rass7 os education Of the most e1ecuFe
features which has been the delivery OF an al
dress in advocacy Of the currency plan by some
member OF the currency commission at eaCil s'a'o
bankers convention held since the last meeting OF
the national body
Mr. Fowler said after adjournment i consider
.he action of the association to-day in putting
itself on record favoring the creuit currency
Echenoe TO be a tremendous victory for those or
us p=ho believe in the need of credit currency
The action OF the convention IS bound 10 nave ah
effect upon Congress-e profound effect congress
is COMPOSED of broad-Inindsd men who must DOW
70 the public demands. and the expressed sentiment
Of e body OF men such the American Bankers
Association must carry great influence
Mr. HEPBURNs SPEECH
Nr. Hepburn. who MAS the first speaker IN 'h9
currency discussion. said that he had been oeslreo
20 submit the convention the comnisslons re-
port which had been printed and widely cfrrn-
Far al An irre feature of the report ne
went en- was the proposed credit currency act
which had failed Of passage by Congress- out
which had led TO the passage Of the Aldrtch act a
measure enlbodying many OF the features pro-
posed by the commission
With the fling of the report the iabors OF the
commission terminated. Mr Hepburn continued IN
part follows:
The currency plan recommended by the cou1mis-
L any national bank having been actively doing
business for one year and having surplus iund
equal TO % per of its capital shall nave Slu-
1ority 10 Issue credit follows, subject TO
the rules and regulations 10 be determined oy uhe
Controller Of the Currency
1el An amount equal 10 90 per cent Of its bond
secured circulation, subject TO tax at the rate OF
Il. per cent per annum upon the average ailou'''
OBJ a further amount equal to 1913 per cent Of
its capital subject a tax at the RATE OF per
per aIsnurl upon the average amount oa'S 'io
ing In excess Of the amount first mentioned. To-.
% The same reserves shall be carried against
credit notes as are now required oy Id" ~ Oo "a"
+ pToTides per cent guarantee fund, from
IN fhs notes OF OeIaulllIS
81 provides numerous redemption CITES e,d2
located IN various parts OF the country a siluy
OF the statistical history Of the national paI1lis
svsten rom its inception will leave no doubt in
the minds Of candid men as 70 the soeolasS % '
BY basing the amount OF the proposed S Issue Of Of
credit currency upon the bond seeuso now So So
largely owned by the banks. is preserved anu Pr
size nor radtcai: Il seeks to engraft upon existing
laws simple changes which viii ADMIT OF ilcreasi ili
demands OF business which accompany, I'eTloos OF
business actiyt3-Tiness the crop mems ~ scb CIR
cIliaiion with the abatement Of such demands. ~
The issuing nans: & I siso by Convenient points OF
whenever the demand which called the same lnto IL,
being has been satleq g11r low rate of interest
there would be less feeling OF constTaint TO iorce
T convsient lent points @ Of redemption The c95stand
ing period Of such notes would be limited I'M e ne ne
issue the more expensive It would be.
CERTIFIED CHECK IN NEW YORK
The Stock Exchange Produce Exchange. Gotten
Exchange all the exchanges dealing in commodl-
have currency of their oU-n-the certined check-
AGal % unR1oa IR2oy OT In t city q Of New York IN any
transaction except Of a retail character. The nanH
check performs the function OF payment ana u
the amount reaches into the thousands the check
IS certified II is perfect currency II ls eiaT sT
Gated upon the credit Of the parties TO the trans
II is not subject to governmental interference. il
% absolutely responsive TO the demands OF trade
ana s a9 m o,,asssss. IS and except for supbIving the
answers every purpose The proposed currency
would not be usable between banks in the city OF
New York. Balances at the Clearing House in
that city be settled only in gold or silver or
their representative. and legal tender money. The
present bank notes are available for such pur-
pose. Whenever the present bond secured bank
they send them to the United States Treasury for
redemption and receive in exchange legal tender
money. which counts part of their reserve.
call attention TO these facts and eirctst ances IN
interest in the proposed note issue than almost
point. the currency system of country can Fest
he administered through the instruIuentality of
created central bank of issue and provided that
ing banks shoad revert to this central bank Of
issue whenever for any cause the various banks
should surrender or forfeit the same. tinted Ger
many has taught US the same lesson closely fol-
lowing the example of England. but greatly i'm
elasticity and ability commercial interests
traliza.ion with tine popular and growing demand
that all corporations, national in their scope and
re1t is not logical and fair assume + at pub
ernueTt's receipts and disbursements shali he
made through central hank. thereby keeping
fht embarrassment and injury which result from
te absorption cf funds and the SUBSEQUENT deposit
the practical working SubTreasrrrv system:
rspd that onr currency-the l,sebood Of all indus
try-te regulated and controlled throu@h the treru-
ulen'aiitv Of a government controlled central bank
% Issue?
a very different note struck by the next
speaker Henry ". Yates. president OF the Ne
f,raska National Bank. Omaha, who in a vehe-
meat and rapidly delivered address denounced the
plan as revolutionary and declared that the ques-
ton involved was \ political question
When Nj Yates resumed his seat there were
c-gfs Of from all hail, and MT