The Birmingham age-herald., 1907-11-25
FinancisIs Want Great Insttu- lion like Those Of Eng-
 lad And France
MANY OTHER PLANS ARE
 SUBMITTED BY BANKS
Congress Will Take Up Matter at Com. ing Session and Some Plan Will Be Agreed Upon to Settle
 Financial Affairs.

Washington, November 24.--Details of many new projects for improving the currency are being submitted to the President and Secretary Cortelyou and are receiving attention such as the other eXigencies of the financial situa- ton permit. Measures which are being discussed among bankers and members of Congress may be roughly grouped under four heads central bank of issue; a central organization of the ex- isting national banks, the issue of ad- ditional circulation against various classes of bonds other than United States bonds, and the issue of circula tion upon general assets with the se- 'curity of a guaranty fund The pro ject of central bank based upon the the general outline of the Bank of France or the Imperial Bank of Ger many, has apparently been attracting more attention of late than at any previous time in recent years. Senator Hansbrough of North Dakota. who is a member of the finance committee, has announced that he will introduce bill for such an institution. Sol WeXler vice president of the Whitney Central National bank of New orleans, is openly in favor of a central bank and says that the New Orleans press is generally with him.
 Great Central Bank.
 Those who favor a central bank point to the recent crisis as the best evidence of the aid which it could have afforded had it been in operation.
 Their view is that the national banks would have been able to rediscount their paper at such an institution and obtain it's notes to any amount nee inAary to relieve the strain. It is con .bA bred somewhat significant in some i. .EArters that MT. Ridgely, the comp ' Syoller of the currency has just de- NSEiared for central bank of issue after having in previous reports recom- mended only a general credit currency for the evisting banks. The utter ances of MT. Ridgely are not, however, considered to commit the administra- ton since the Secretary of the Treasury also has a plan which he is advocat- ing.
 It is so long since 8 central bank existed or was even seriously consid- cred in the United States that there is much difference of opinion as to the details of the organization. Those who advocate it generally insist, however, the the Secretary of the Treasury and the comptroller of the currency should be ex-offcio members of the board of directors and that the President should appoint or select a head of the bank.
 Combination of Banks.
 The protected combination among the national banks through their clearing house committees or otherwise, to guarantee a special circulation in case of emergency, is embodied in several plans which have been submitted to the Secretary of the Treasury. While these plans are decided by experts to have some degree of merit, it is feared that thev are too complicated to receive serious consideration at the next Con gress.
 Most of the plans presented at the previous session of Congress nave dealt with the question or lncreas- ing the elasticity of the circulation issued by national banks by permitting ,t to he issued on other security than United States bonds.
 Fowler's Plann.
 The plan proposed by Representative Fowler chairman of the house committee on banking, provides for issues upon the general credit of the bank. with provision for q guaranty fund raised by taxation upon circulation. This guaranty fund Is to be employed when necessary to re deem the notes of failed banks. It Is ,he contention of Mir. Fowler and others who favor this plan that tax Of about one-tWenfth of one per cent annually unon the circulation would meet all losses but in order to insure absolute safety they propose that the tax shall he very much larger than this.
 The principle of the Fowler bill Is ,r harmony with two other measures yrhich have attracted considerable atten- tion for a year. These are the special nlan of the New York chamber of com ,narce which was indorsed unanimously ,, ,he chamber in November, 19p6, and tbe nlan of the special committee of +na American Bankers association which was indorsed almost unanimously Ut the annual convention of the association at Atlantic City in September last The ,,Ian of the chamber of commerce commit taa nronosed issues on the general credit of the hank to the amount of five per cant of capital under each of the rates of taxation two. three and four per cent and the amount of ten per cent of capital of each of the rates Of i've and aix ner cent This permitted total is- a,,es to the amount of B per cent of canital or about s2s0. .00000o. but 1t was contended that no more than half of this, taxed up to the rate or four per cent could be kept in circulation under ordi- nary conditions. The plan Of the bank CTS association provided for issues to the amount of 25 per cent of capital un- der a tax of oh per cent and 121s per cent of capital under a tax of five per ecent The bankers plan, therefore, per 1nitted larger issues upon an average lower rate than the chamber of commerce plan. Both these proposals are discovered by the advocates to be very conserva- tive.
 New Types of Banks.
 Both plans require certain percent age of bonds to be held by national lnauk In order to obtain the additional