Daily press. [volume] (Newport News, Va.) 1896-current, 1907-11-21
President Roosevelt Puts His Cur
rsRcg Idea IN Specific Plan.
SOUGHT ADVICE OF MANY OTHERS
Believed Tina, He viii Follow the
General Recommendations Of the
American Bankers Association
Made at Recent Convention.
(Ry Associated Prcssl

Wy hSSOCldlPu TTcSSl
WASHINGTON -. c.. Nov. 90
President Roosevelt has completed
the final draft of his message to the
first session OF the Sixtieth Congress,
including recommendations as To f.
nancial legislation and it is in this
hands of the printer. IL is n matter
of surprise that the Presidents cur
rcncy ideas have taken definite shape
and have been embodied in Il specific
plan. Ii was thought that ne was stlll
seeking advice about the best remedy
for the currency troubles. and that
tons until the last moment and then
send them To Congress in special
message.
Sought Advice of others.
The President consulted in person
and by letter with some Of the lead.
ing members of the Senate and
House. Senator Allison had advised
him. aud II is assumed that Senator
Al1rich. the most influential member
of the Senate in financial legislation
had done SO also. Members of the
Presidents Cabinet were consulted
as well as certain prominent bankers
from various parts OF the country. The
President sought the views of Spes L.
or Cannon, but it is understood he
Speaker was not ready To submit suG
sestions. foa lie has not yet replied
definitely.
The Probable Plan.
administration officials are still re.
ticent regarding the details of the
Presidents plan for currency lcgisla
ton. There is reason to believe
however that 1t follows the general
recommendation of the American
Bankers Association at it's recent
convention. This Association. which
Is the most influential and represcn
tative Of the banking interests. las
Endorsed general plan of credit cur.
rency Briefly 1t is as follows:
ANY national bank having a sur.
plus fund equal to 90 per cent of it's
capital may issue credit notes 10 an
amount equal to 40 per cent of its
bond-sccurcd circulation. subject TO n
tax at the rate of > 10 per cent per
annum upon the average amount ont.
standing. a further amount NAV be
issued equal to II ~ per cent. Of
It's capital. subject to tax Mt the
rate of 5per cent per annum upon
- ~ N'"tNt siiitOuit III IlfUllOlltu.
The same reserve shall he carried
against credit notes as is now no
Quired by law to be carried against
deposits.
The same plan provides for n 3 per
cent. guarantee fund form which to
redeem the notes of any defaulting
bank
This is understood to be the plan
which the administration is ready to
fav' although there may be changes
regarding the amount OF tax and fur.
Their limitations upon the amount of
issue. Such law would provide an
increase of something like S200,000.-
oUu TO the present stock of currency
administration officials admit that
the simplest law possible must be
drafted consistent with furnishing
greater elasticity in the currency sys.
tenn. Care will be taken to keen
away from intricate or experimental
FEATURES which might shake the foun.
dation of the present system
Postal Savings Banks.
The President will also heartily re.
commend the establishment OF Gov.
erhment postal savings banks. II Is
already apparent that no currency
legislation will be able to get through
Congress without much opposition
and perhaps long delay. Speaker
cannon is understood to be inimica!
10 most every plan that has been
suggested. He is backed I'M by many
western Senators. The West is ex.
pected TO he against the foregoing
plan OF credit currency. Some. OF the
statesmen from that sac;io, dooJaco
that it Is scheme To further tho
the East.