Omaha daily bee., 1907-09-21
FIGHT ON UNSECURED PAPER
Issue Before Convention of American
Bankers at Atlantic City.
YATES WILL OPPOSE IT TO LAST
Luther Drake One of Few western
Bankers For IL and W. II.
BucholE, Third Omaha
Delegate, with Yates.

The great question which will come be-
fore the American bankers convention will
be that of accepting the report OF the cur
rency committee said Henry w. Yates,
president of the Nebraska National bank
and delegate to the convention, which
meets next week in Atlantic City. This
committee was appointed two years ago
end after pursuing extensive investigation
and spending much money 1t reported in
favor Of giving the banks authority to
issue paper without security. This report
was made at the national convention in
st. Louis last year Our state convention
met Immediately after that, and Nebraska
bankers were almost unanimously against
such a measure.
1T is likely the measure will receive
strong support from eastern bankers be-
cause they want more money back there
Wall street wants II for it's operations
The measure will receive support also from
the bankers of the south. In the west we
are almost unanimously against IT. In a
country like this paper money is not
needed. We have ample assets; we are roll
ing in wealth. Only poor, impoverished
countries need paper money.
Report May He Adopted.
THE report of the committee may be
adopted and congress may be asked to
pass measure authorizing banks to issue
such unsecured paper in times OF financial
stress. The president and congress have
promised their cooperation II the bankers
agree that such a measure is expedient
IL there is strong and determined tight
against the committees report 1 do not
believe the president and congress will
authorize such a radical step in banking.
1 shall fight it with all my strength
Mr.. Yates will leave early next week for
Atlantic City, where the convention meets
At its close he will go to Richmond, Va
to attend the general conference OF the
Episcopal church, to which he is also a
delegate.
Luther Drake, president of the Merchants
National bank, is one of the few western
men who are in favor of this measure. He
was member of the committee which
made the report. He is also a delegate to
| the convention in Atlantic City.
w. H. Buchoiz cashier Of the Omaha
National bank, is the other Omaha dele
gate to the convention.
Calls IL Balloon Money.
THE report of the currency committee
recommends what l consider balloon
money" he said. 'It is the desire of
every banker to have currency which
Will expand in times of financial stress and
thus prevent panics. That was what the
committee set out to find, but in my opinion
it failed utterly. The plan advised would
give an expanded currency. but It would
be expanded all the time and would not
contract in healthy manner at the proper
time
Whether or not NehYaska is to have a
new member on the executive committee
will be an important question. ]. T.
Trenery of Pawnee City was our repre-
sentative on that important committee, but
he has removed to st. Joseph. The con-
vention may hold that his removal from
the state does not constitute vacancy
If there Is a vacancy S. II. Burnam, presi-
dtnt Of the First National bank of Lincoln
will be candidate for the place.
There will also be hard fight for the
position OF secretary, which is highly hon
orable and lucrative This place has been
held for some years by Colonel r. B.
Branch of New York. but this year there
will be several other candidates each deter
mined to get the plum"