Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-11-25
MANY PLANS TO
IMPROVE THE
CURRENCY
CENTRAL BANK PROJECT
FINDS MANY FRIENDS
HanSborough Announces lnten-
ton of Introducing Bill for
Institutions Comptroller of
Currency Approves Measure,
IBy Morning Journal Special Leased WIRE

| IBy Morning Journal Special Leased wire.1
| Washington. Nov. 24.-Details of
many new projects for improving the
currency are being submitted to the
president and Secretary Cortelyou.
are receiving such attention as the
other exigencies for the financial sit
uatOn permit. Secretary Cortelyou
| is good listener and usually digests
quickly any essential points of the
various plans which are submitted to
him. Measures relating directly to the
currency which are being discussed
among the bankers and incoming
, members of congress may be roughly
grouped under four heads. a central
bank of issue, central organization
of the existing national banks, the is
sue of additional circulation against
various classes of bonds other than
United States bonds and the issue of
the circulation upon general assets
with the security of a guaranty fund.
The project of central bank
based upon the general outlines OF
the Bank of France or the Imperial !
Bank of Germany, has apparently
been attracting mere attention of late
than at any previous time in recent
years. Senator Hansbrough, of North
Dakota, who is a member of the fin
ance committee, has announced that
he will introduce a bill for such an
institution. Mr. Wexer vice presi-
dent of the Whitney Central National
bank of New Orleans. is openly in fa
vor of central bank, and says that
the New Orleans press, taught by the
strain of the cotton situation, is gen.
orally with him. Those who favor a
central bank point to the recent crisis
as the best evidence of the aid which
1t could have afforded had il been in
operation Their view is that the ma
tional banks would have been able TO
re-discount their paper at such an in
stitution and obtain its notes to any
amount necessary to relieve the strain |
II Is considered somewhat significant |
in some quarters that Mr.. Ridgely |
the comptroller OF the currency, has |
just declared for a central bank of /
issue after having In previous reports
recommended only general credit
currency for the existing banks. The
utterances of Mr.. Ridgely are not,
however. considered to commit the
administration since Treasurer Treat
has a different plan which he is ad-
vocating whenever he is invited to de-
liver a public address on the subject.
1t is so long since a central bank
existed or was even seriously discuss
ed in the United states that there is
much difference of opinion as to the
details of the organization. Those
who advocate il generally insist. how
ever. that the secretary of the treas
ury and the comptroller of the cur
rency should be ex-officio members
of the board of directors and that the
president should appoint or approve
of the selection OF the head of the
bank. The provisions of the German
bank charter i'm regard to circulation
finds a good deal of favor, that artef
"A certain fixed limit of circulation adj
ditional issues. which are not covered
dollar for dollar by gold, should be
taxed at the rate of per cent. 9th
ers. however. prefer the greater free
dom of the French system, where the
volume of not Issues is practically un-
der the control of the bank, and where
The accumulation of a large reserve
permits the bank to serenely main
tain a rate OF discount much lower
than that of the Bank Of England or
The Bank of Germany. while other
are in the throes of finan-
cial convulsion.
The project of combination among
The national banks through their
clearing house commission or other
wise TO guarantee a special circula-
lion In case of emergency, is embod-
ed in several plans which have been
to the secretary OF the
Nnllt NHtHt Dlhth Hit uttidl-
I'd by the experts to have some de-
gree of merit. IL is feared that they
are too complicated to receive serious
attention in congress. SO far as the !
plans require voluntary action by the
banks this might be difficult to OBJ !
ain. so far as they compel action by
aw It Is felt by some that such a ]
policy would be drastic il not uncon- .
'titutional in compelling the banks to !
make use of their assets which they !
night not desire TO make.
Most OF the plans presented at pre- u
Tious sessions OF congress have dealt =
With the question of increasing the u
elasticity Of the circulation issued by I
banks by permitting issues 7
m other security than United States
ponds. There is a radical difference j
" opinion, however. between the two n
chools OF thought as TO the nature Of
hese additional issues. The plan pro- C
'osed by Representative Fowler, o
hairman of the house committee on z
,anking. provides for an issue upon =
he general credit OF the bank. with e
PROVISION for a guaranty fund raised a
" taxation on circulation. shis ?
guaranty fund IS to be employed when 9
lecessary to redeem the notes Of fall II
a banks. II is the contention Of Mr.. q
Fowler and others who favor this plan y
hat a tax OF about one-tweifth Of one 4
'tl 1fhA nRNi Att itftuid- I
ion would meet all losses. but in or Is
er 10 insure absolute safety they pro- u
lose that the tax shall be very much q
8rger than this. Il
The principle OF the Fowler bill Is in a
armOny with two other measures. u
rhich attracted coneidera Bile attention II
year ago. the bin OF the special ci
Of the New York cham ber
commerce. which was indorsed
by the chamber in 1895.
nd the plan Of the special commit
Re Of the American Bankers associa- Il
on. which was endorsed almost IN
az the annual convention Z,
4 the association at Atlantic City ia n
eptember last. The plan Of the n
hamber Of commerce proposed 10 - ID
ae from the general credit OF the @
anks 20 the amount of 5 per cent Of m
he capital under each Of the rates OF b