The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1907-11-08
WILL CONFERON
THE CALLING Of
THELEG|SLATURE
Mayor, Bankers and Cover
nor to Discuss Finan-
ciaI Stringency
EXTRA SESSION PLAN
Gillett Opposed to It Unless
Found Absolutely
Necessary
ENACTMENTs SOUGHT
One to Defer Tax Payments,
the Other to Circulate
City Money

AT conference to be held in Sar
Francisco at noon today with Mayor
Taylor, state and city officials ano
leading bankers of the state, Governor
Gillett will reach decision as to the
advisability of an extra session of the
legislature to solve the problems
created by the financial stringency
Governor Gillett expressed himself
yesterday as opposed TO an extra ses-
sion unless it were found to be abso-
lutely necessary. Great pressure will
be brought to bear upon the governor
by local bankers. many of whom be-
lieve that the situation demands spe-
cial legislative action. The conference
will be held IN the mayors office and
those present Will include Governor Gill
lett, Mayor Taylor, members of the
board of supervisors, State Controller
Nye. State Treasurer Williams, George
Peltier, president OF the California
bankers association, and Homer s.
King, president of the San Francisco
clearing house.
SEEK NEW ENACTMENTs
The request for an extra session has
been made on the ground that 1t will
be impossible in the present condition
/ of the money market to collect the
first instalIment of taxes which will
fall due November 25. The bankers
who advocate the special session will
ask for two specific enactments; one to
defer the date on which taxes become
delinquent, and another to empower
the state and county treasurers to de-
posit the money entrusted to them in
the savings and national banks of the
state. Amendment No. adopted at
the recent election was designed to
permit of such deposits By the city
treasurer and legislative ratification is
desired by the bankers
It is furthermore the intention of
the bankers, as explained yesterday by
W. E. Palmer. secretary of the Savings
Banks association, to have a definite
enactment by the legislature which will
remove all doubt as to the rights of
savings banks to these state and rnuni-
cipal deposits.
AS the law now stands, Attorney
General Webb has held that these de-
posits may not be made in the savings
banks. Palmer said yesterday that 1t
would be to the advantage OF the state
and cities OF California as well as to
the savings banks to modify the law.
Palmer pointed out that this would
create demand upon the part of the
savings banks for municipal bonds to
be deposited with the treasurer as Sc
curity for the cItys coin, and would
thus operate to the beneht of the NUM-
cipality. The banks, moreover. would
be required to pay interest at the rate
Of per cent on the city money. By
this process. said Palmer. coin paid in
as taxes would not be boarded in the
city treasury, but would at once begin
to circulate.
At present the city treasury contains
| $4,000, 900 and it IL held by the bankers
that this amount, II put in circulation.
would relieve the situation to a ma
terisl extent.
TO SOLVE TAX QUESTION
Several methods of solving the tar
question have been submitted The two
which have met with the greatest sup
port propose either that the date on
which taxes become delinquent be post
! poned from November 25 to April a.,
1908, or that the penalty for delin-
Quency be reduced from 10 to 4 per
cent. The entire matter will be thrashed
out at the conference today.
The United Railroads notified the tax
collector yesterday that it was unable
to procure any coin at the bank to pay
its taxes. The Spring Valley water
company, the San Francisco gas and
electric company and other large cor
porations are in the same predicament.
A more optimistic feeling prevailed
yesterday in banking circles The new
clearing house certificates in sums of
! 81 and $40 were prepared The $40
certificates are in two colors More
gold is arriving every day, and 1t is
believed that next week will see a
/ golden stream pouring across the conti-
nent to the Pacific coast. The sub
treasury paid out yesterday ss45.o
Most Of II went to the San Francisco
banks and portion to the northwest
and the interior
W. C. RaIston, assistant United States
treasurer received dispatch yesterday
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