The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-11-24
Roosevelt Will Urge
Heavily Taxed Emer-
genCy Issue by Ma
tiOnal Banks.
NebraSkan FaVorS Ma
tiOnal Guarantee for
All DepositorS.

President Roosevelt discussed curTen-
cy reform on Friday night Win J. Pier
pom Morgan, and on Saturd8 talked OF
the same subject with William Jen-
nings Bryan
The President frankly presented to
both OF his distinguished callers the out
la3e Of his general plan for lettering the
CuTre1Cy situation. and found himself
IN the gratifying position Of being able
10 rike hands with both as TO essen
tials.
\ more remarkable meeting Of minds
could hardly be conceived than this sub
staLtial agreement Of the President, the
I'a-er of New York finance, and the
hesd Of radical Democracy. Likewise
a more convincing augury Of success
IN the effort to put an end 10 present
unsatisfactory conditions would be DIFF
hcult To imagine. All three Of the con-
ferees We're greatly pleased with their
discussions OF the paramount issue Of
the hour.
idr. Morgan and George F. Baker.
president OF the First National Bank Of
New York. came TO Washington ex-
pressly TO see the President The ap-
poinJment for their reception by the
President was not made until $50 IN
the evening. The interview lasted until
near midnight. and II is understood that.
aside from the matter OF currency re-
lief legislation, there was some c0nsid-
Grafton OF other matters likely 90 come
before Congress-specihcaI the Presi-
dents policy Of establishing firm Federal
control over the great corporations en-
gagged in interstate commerce.
Success for Program.
It IS believed that the prospect Of sue
cess for the general program OF the
Administration. involving both currency
and corporation questions. has remarza-
bly, frightened as a result Of these in
terviews- The President is willing and
anxious that necessary currency legisIa-
ton shall pass, and 90 this he finds him
self IN agreement with the leaders OF
the most conservative business and the
most radical political sentiment OF the
country
Likewise the President is anxious Cor
the execution Of his program Of Fed
eraIzation Of great corporations. either
by the process OF a Federal license sys-
tenn or Dy national Incorporation. and
thOrity, there is every reason 70 believe
substantial agreement IS in sight.
The great corporate interests have
come TO view Federal control more leni-
entity since their experience -Hi-h forty
five kinds of State regulation. A Fed
eral control that would supersede State
Interference with their concerns would
look 10 many OF them like emancipation.
Is Hra# r~Hra4. ed
tion which Is likely 10 be effective In
helping crystalline into statutes an i'm
pcrtant share OF the Administrations
program at the coming session OF Con-
gress.
Indeed there Is reason for the belief
that the accidental conjunction Of this
trio Of first magnitude stars in the
armament Of affairs viii later prove to
have been an event of the utmost sig
nificance.
High Tax on Emergency Issue.
President Roosevelus currency reform
plan. as it was laid before his two noted
ee!lers and viii go 10 Congress, involves
The idea CT issuance Of emergency cir
U>.1atiOn by national banks against the
5cc~rity Of segregated assets Of ap-
proved character. The President does
not fancy tie idea OF circulation based
OF the general responsibility of a bank.
He does believe in emergency cfrcllIa-
ton, but is very definite III the opinion
that It must be so restricted that it shall
be emergency circulation only. and
shall be automatically retired when the
emergency IS past
Ia order 70 attain this end, it Is said
by persons IN position to know the Pres
dents views, he wants the emergency
circulation taxed at a high enough rate
&c assure that it viii become unprofit-
able when the emergency which called
II forth shall have passed. He does
not believe that a 3 per cent tax, such
as IS proposed by the Fowler plan,
would be sufficient 10 assure prompt
retirement Rather, he fears that a tax
Of per cent or less would serve as a
constant temptation to imitation. Circu-
laTIOn would be issued on the strength
ef emergencies, more or less imaginary
and would not be retired simply because
there would be possibility Of prOfitably
leaning 1t under ordinary business CON
ditions.
Consequently, as the Presidents plan
is understood, It would involve impOsi-
ton OF tax Of 5. 6, Z, or per cent,
ptODdol5 increasing III proportion 10 the
volume issued. the first issue going out
at the lower rate, and the tax being
increased as the amount OF issue be-
comes larger. This, II is DELI eyed, would
remove the temptation 10 Imitation, and
assure that in normal times the banks
would not issue more than was really
r-eded, while IL would leave a margin
sui within the limits of safety, which
might be covered by further issues in
times of real monetary stress
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