The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-11-25
MANY TINKERS
APPEAR WITH
NEW PROJECTS
Administration Struggling With
Plans to reform" the FL
nanCiaI System of Country.
CENTRAL BANK SCHEME
FINDS SOME SUPPORTERS
TAsSET" CURRENCY URGED BY
CHAIRMAN FOWLER AND Ma
TiONAL ASSN. OF BANKERS.

Washington. Nov. 24-Details of
many new projects for improving the
currency are being submitted to the
president and Secretary Cortelyou and
are receiving such attention as the 9TH
er exigencies for the financial situation
permit. Secretary Cortelyou is a good
listener, and usually digests quickly
the essential parts Of the various plans
which are submitted to him. Measures
relating to the currency which are be-
ing discussed among bankers and in
coming members of congress may be
roughly grouped under four heads, a
central bank of issue, central organ
ization of the existing national banks
the issue of additional circulation
agains various classes Of bonds other
than United States bonds and the is
.s+ue of circulation upon general assets
with the security of a guaranty fund.
Central Bank Idea.
The project Of a central bank based
upon the general outlines of the Bank
of France or the Imperial Bank of
Germany has apparently been attract
ing more attention of late than any
previous time in recent years. Senator
HansbrOugh of North Dakota, who is
a member of the finance committee,
has announced that he will introduce
f bill for such an institution. Mr..
WeXler, vice president of the Whitney
Central National bank of New Orleans,
is openly in favor of a centHll bank.
and says that the New Orleans press.
taught by the strain of the cotton sit
uation, is generally with him.
Those who favor a central bank
point to the recent crisis as the best
evidence of the aid which it could have
afforded had il been in operation. Their
view is that the national banks would
have been able to rediScOunt their pa
per at such an institution and obtain
its notes to any amount necessary TO
relieve the strain. IT 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 a
general credit currency for the exist
ing banks. The utterances of Mr.
Ridgely are not however. considered
TO commit the administration. since
Treasurer Treat has a different plan
which he is advocating whenever he is
invited to deliver a public address on
the subject.
Difference of Opinion.
1t is so long since a central bank ex-
I'm the United States that there is much
difference of opinion as TO the details
of the organization. Those who advo-
cate it generally insist, however, that
The secretary of the treasury and the
comptroller of the currency should be
ex-officiO members of the board of di-
rectors. and that the president should
appoint or approve the selection of the
head Of the bank. The provisions of
IL.
circulation finds n good deal of favor
that after a certain fixed limit of cir
r culatiOn additional issues which are
not covered dollar for dollar by gold
should be taxed at the rate of per
cent. Others, however, prefer the
greater freedom of the French system.
where the volume of note issues is
practically under the control of the
bank and where the accumulation of a
large reserve permits the bank to Sc
renely maintain a rate of discount
much lower than that of the Bank of
England or the Bank of Germany.
while other countries are in the throes
of Industrial CONFUSION.
Combination of Banks.
The project of combination among
the national banks through their clear
ing house committees or otherwise. to
guarantee a special circulation in case
of emergency, is embodied in several
plans which have been submitted TO the
secretary of the treasury. While these
plans are declared by experts to have
some degree OF merit, 1t is feared that
they are too complicated 10 receive
serious attention I'm congress. So far
Continued on Page 2.
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