The Birmingham age-herald., 1907-12-01
TENTATIVE PLANS GIVEN
Law Is Proposed By Which Banks May Increase Circulation Upon Deposit of Securities Approved By
 the Government.

Tn the city or senator Aldflcn, cHhlrlildH of the finance committee of the senate. Senator Hale of Maine, and Senator AL lison of Iowa. This triumvlrate practical ly dictate affairs in the senate.
 Almost immediately upon arriving in the city these senators went into conference. They did not visit the White House, but it Is understood that Secretary Cortel- you was in consultation with at least one member of the group. They were also in communication with Speaker Cannon and secured his views.
 It may be stated that the tentative draft of a currency bill is in the hands of Senator Aldrich. This bill, it is under stood. bears the Endorsement of Frank "A. Vanderlip and the National City bank. This bill it Is believed with a few al- terations will be the bill offered for pas sage in Congress.
 Rush on the Bill.
 1t is considered probable that the ad- ministration forces will get behind the bill and try to jam 1t through before the holi- days. There Is general belief, however. so widely apart are the republican lead CTS upon what Is best to remedy the ills of the country, that only months of talk, wrangle and arbitration will finally frame compromise bill that can be put on the statute books.
 It is known that for the last ten days. Senators Aldrich, Hale, Allison and Speaker Cannon have been in communca- ton by mall about the proposed bllls, When they reported here, their mind tnro .raH .lnar. A the preliminary conferences, it is undet- stood. had practically assured concerted action among the leaders The hor Si committee on banking and currency wfIs.lSl will have charge of this measure will be appointed by Speaker Cannon early In the week. This committee will be asked by the speaker to back him up in whatever he purposes. It is considered probable that whatever delay and objec- tions to the bill develop will came from the senate. If the bill can be forced through there 1t is pretty certain that the speaker can fulfill his end of the contract and get a favorable reply to the com- mittee on banking and currency and jam the bill through the house.
 Proposed Legislation.
 Briefly stated tn legislation which had been agreed upon by the leaders in the last AS hours purposed to grant authority by law for the issuance by national banks of circulation based upon securities approved by the Sec retary of the Treasury of the class which are now accepted as security for deposits.
 These securities will be accepted by the Secretary of the Treasury at mar ket valuation. but never above par and the circulation issued upon them shall not be in excess of 75 or 80 per cent of such valuation.
 Such circulation shall be subjected to tax of or per cent. The tax may be graded, beginning at per cent and increased according to the volume of circulation taken out. The law Will be so framed that this emergency crcula- ton can be retired at any time the banks issuing 1t desire.
 This will mean further amendment of the existing law. as under the present statutes only $9.0O0,O00 of national bank circulation can be retired in any one month.
 It is purposed that retirement may be secured by the deposit of any lawful money in the treasury of the United States, by the bank desiring to contract its issue and from the time of such de- posit the heavy tax shall cease. It will then be the duty of the treasury de- partment to retire the identical note currency issued by the bank as it is forwarded from different banks in the parts of the country in which 1t has been distributed.
 --~-~-~~~~-~~--~---- ----~>----~-~-~--~~-~-- ury of the United States to be held as d separate and special fund.
 If upon the failure of any national bank the amount realized from the collection of it's assets, and the assessment levied upon it's stockholders. shall not be suffi- cient to pay depositors and creditors Tn full of the face value of their claims against said bank, then the Comptroller of the Currency shall certify said amount of deficit as ascertained by him. and the Treasurer of the United States shall pro- ceed to draw his warrant upon such fund for the amount so certified and pay able to the receiver of said bank to be used in settling the balance of said de- posits or other proper claims
 When the fund created by the provisions of this act shall aggregate s10,0c,00O, the Comptroller shall cease to levy such tax until the amount of the fund shall, In his judgment, require further collections in order to maintain a minimum of such amount of Si0,000,0OO.
 Upon the liquidation of any bank con tributing to the fund herein authorized the Comptroller shall ascertain if any portion of the fund contributed by said hquidating bank shall be returned to said bank after ascertaining it's proportion of losses sustained and expenses properly chargeable to said fund. and if any bal ance is due said bank he, shall certify the amount to the Treasurer, who shall draw his warrant for the amount so certi- fled in. favor of parties to whom such amount is legally payable ". s,