Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-11-18

should be taken, some favoring the asset
system. under which the banks would be
allowed to use their property AS the basis
Of credit. and others the bond system un-
der which the bank issue could be en-
larged only upon securities such as ml-
nicipal bonds. with the requirement that
they should be approved by the Secre-
tary Of the Treasury.
The general idea seems to be that the
margin of fexibility should not extend
beyond 25 per cent of the banks capi-
tai, and that in any event the enlarged
issue should be so heavily taxed as to
drive 1T back when the emergency is
passed.
One reason for believing that there will
be comparatively little difficulty in reach
ing an agreement on some basis is found
In the fact that the so-called conservative
element In the republican party Is in COM
piete accord with the administration in
the opinion that some form of relief is
absolutely necessary in the present emer-
gency, to say nothing of possible future
conditions of the same character. The
only practical difficulty which presents
itself at this time is an agreement on the
form of Legislation. At the same time it is
not expected that anything will be ac-
complished without much discussion, es-
pecfalY In the Senate, where there is un-
limited debate and where there are many
opinions as to what should be done. There
will also be found there some disposition
to critiCiSe the present conditions.
There will also probably be some polit-
ical discussion. 1t Is not believed, how
ever, that the democrats will offer any
stubborn opposition, but will rather con-
tent themselves in stating their position
and throwing the responsibility for action
on the party in power.
Views of Six Republican Senators.
AS indicative of the state of mind in
Congress it may be stated that in a gath
er.ng of six republican senators, Messrs
Foraker, Lodge, Warren, Scott, Bulkeley
and Warner, all of them expressed the
decided opinion that some financial legis-
lation is necessary and will be enacted
during the apprOac ching session of Con-
gress, but there was much variance OF
opinion as to what could or should be
done. No democratic senators We're pres
ent, and consequently there was op-
portunity of securing the democratic
view at that time. In the House there is
a disposition to demand that the finan-
ciers reach an agreement before asking
Congress to act. The general impression
there, as in the Senate, is that there
should be legislation, but more is made of
the difficulty of arriving at an agreement
as to the form it should take.
Senator Long of Kansas believes the
President has done all in his power to re-
store confidence in the action taken yes
terday, and that the result will meet eX-
pectations.
Approved by Financiers.
Treasury officials and others most con-
versant with national finances and the
currency conditions throughout the colln-
try are almost a unit in the opinion that
Secretary Cortelyous announcement that
he would issue $1OO, 600 eco in Treasury
certificates and $jO,OOO,OOO In Panama
bonds is a complete solution of the pres
ent money problem. kilograms received
this morning at the Treasury Department
from leading tinanciers in the great money
centers indicate that this view is general
and the opinion is expressed that very
large proportion of the money which has
been Withdrawn by timid depositors VII
now be speedily replaced in the banks
and normal conditions be reached, so far
as an adequate money supply is con-
cerned in a very few days.
The law comforting upon the Secretary
the right to issue Treasury certificates is
found in section 81 of the Spanish war
revenue act, approved June 10, 1898.
The authority conferred by this act was
not made use of during the Spanish war
but it's legality in the present situation is
not questioned by the law officers of the
government, who have, during the last
several days, given the matter their clos
est study. The Panama canal bonds are
now in the Treasury vaults, and will be
ready for distribution Immediately upon
the acceptance of bids after Saturday, No
vember 80. The Treasury certificates will
not be printed. and the ink sufficiently
dried to admit of their being handled for
some time, but temporary certificates will
be ready for distribution within day or
two.
Will Make Money Circulate.
1t is claimed that the effect of the issue
of certificates will be to increase the
available money in circulation. 1t is as
serted that people who have their funds
in cash, and in places where they get no
interest, will be glad to get Or their nom
interest paying currency a government Sc
curity which yields per cent.
A certificate issued by the government,
having behind it the immense resources
of the government, will be recognized as
having a better value than actual cash,
for the reason that it is just as available
as cash, and in addition renders to the
holder 3 per cent per annum. In addition
| to drawing out money from places where
| it is earning nothing and restoring 1t
again to the channels of business it Is
nla a i'm cd fhat two hapafifs will apcrIa ono