The Norfolk weekly news-journal., 1907-10-18
WEST MONEY CENTER NOW
THIS TENDENCY SHOWN AT MA.
TioNAL CONVENTION.
THE EAST WANTS ELASTICITY

! II is the West Today That is Standing
Pat on the Money Question, Says
G. D. Butterfield, Just Home From
Atlantic City.
The apparent movement to the west
of the center of financial stability and
worldly ailluence was one OF the ten
denotes of the day that impressed
| George -. Butterfeld while in the east
on visit from which he has just re-
| turned to Norfolk 1t Is now the west,
Mr.. Butterfield found, which is stand
! ing pat" on the money question and
the east which is reaching out for an
elastic currency which will meet the
changing demands of business.
The American bankers association,
to which Mr.. Butterfield was one of
| Nebraska's delegates, held a session
full of constructive work at their At
lantic City meeting. The act Of chief
public moment was the adoption Of the
associations special commissions re.
port proposing a plan for a credit
currency" closely akin to what is gen
orally known as asset currency" In
| brief the report approved would per
NIT national banks in addition to their
regular note issue to issue additional
bank notes in amount not to exceed
! % per cent of the capital stock and
secured not by government bonds but
! by the mass of the banks assets. The
new notes could not be issued in eX-
cess of forty per cent of the national
bonds held and would be taxed at a
! rate of two and a half and five per
cent, the proceeds of the tax to consti-
( tute guarantee fund as protection
to the holders of this sort of currency.
! The new note issue would be classed
with deposits in fixing the amount of
the cash reserve.
"The west generally seemed salts
fled with the present financial situa-
ton and western bankers opposed to
any change in the present currency
situation" said Mr.. Butterfield in com.
menting on the action of the bankers
convention. THE east on the other
hand was eager for the change con.
templated in the report adopted. 1t
is the east of course that has been
most affected by the money stringency
Despite many alarming reports in
the press, one finds no great dread in
the east of tide Of hard times or be
lief in an approaching crisis.
"A visit east three months ago would
have found more noticeable feeling
of strain but a spirit of pessimism Is
far from having settled over eastern
financial centers. The east like the
west is in prosperous lines with the
difference that the east being in late
center has been affected by the recent
money stringency.
81 do not think that the money strin
gency affecting the eastern money
market Is to continue severe. Amer
lean shipment of commodities over the
sea will probably be bringing foreign
gold to American shores by Christmas
There is one possible amendment
to the report adopted that would com
mend itself. refer to higher tax or
the proposed bank note issues, tax
that would fix a very definite sphere
for the proposed issue and make then
a profitable issue only in times with
a money stringency puts forth cal
for funds strong enough to bring about
a high interest rate, higher than the
tax on the notes. Not banking profit
but means of relief in times Of money
stringency is contemplated in the pro
posed plan, as | understand it."