The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-05-12
ADOPT CURRENCY BILL
Republicans Agree to Measure and Pro-
vide for Getting II Through House.

vide for Getting II Through House.
WASHINGTON, y. c.. May 1t.-By
vote of 13s to Is the Republican mem
.hers OF the House of Representatives.
tonight agreed to an emergency cur
rency bill, drawn by the special COM
mittec appointed by the caucus last
week, and consisting of Representa-
itives vrceland, of New York: Burton,
OF Ohio; Weeks. OF Massachusetts; Nc
Kinney, of Illinois, and knowland. Of
California. BY an equally decisive vote
the conference placed in the hands of
the Republican members of the COM
mittee on Rules the determination of
the procedure by which the will of the
majority, thus expressed, shall be car
ried into effect in the House.
The Rules Committee has a choice
of methods for putting the conference
bill through the House. The committee
can bring In rule discharging the
Banking and Currency Committee from
further consideration of the Aldrich
bill or the Fowler currency commission
bill or the Williams currency bill.
Either one OF those measures will then
be before the House for action, and the
procedure would be to strike out all
after the enacting clause and under a
one-amendment only rule substitute for
the body OF the bill the conference bill
Inc Dill TdIlIleO lO-ulSuL
for an Issue of emergency currency
not to exceed s500.O0o,0o0. obtainable
for circulation through the National
Clearing House Associations scheme.
The chief points OF the bill are set
forth in the following statement made
by Mr.. vreeland:
Following the Instructions of the
conference the committee used the pre-
viously introduced Vreeland bills as a
working basis for the new act. Sec.
ton Of that bill provides that banks
not less than ten in number with
an aggregate capital. and surplus OF
at least $5,000000 may form voluntary
associations. to be known as clearing
house associations: thatif the needs OF
the country for currency are so press
| ing that II in the opinion of the Sec.
rotary of the Treasury an additional
issue of circulation Is necessary, the
| banks belonging to a clearing g-house
association may deposit securities, IN
cludings commercial paper. in qualit.
and amount acceptable to the associa.
tion.
The association may thereupon ap-
peal to the Secretary of the Treasury
and he may issue an amount of addi-
tional currency not to exceed rs per
cent. of the securities so deposited.
The changes made in that section in
constructing the conference bill arc
that the clearing -house associations
must be formed in contiguous terri
tory; that not more than one shall
exist in any one city: and that no bank
can belong to two associations.
The conference committee further
provided that the capital and surplus
of each bank belonging to an asso-
citation shall be jointly and severally
liable to the government for any de-
iciency In the amount necessary to pay
the circulating notes after the sale OF
securities so deposited in case the
notes are not redeemed
A further change is that national
bank need have but 40 per cent. of It's
capital in bond-secured circulation. In
stead of Is per cent. as condition
precedent TO taking out additional cir
4 culatton through an association. ~
i additional provision was added tina
ba nks must keep a reserve In gold .
j lawful money against such additiona
circulation notes as is now provides
by law against deposits. The commit
tee reduced from s75o.ooo.o0o to $500.
| ono,o 900 the limit of additional circull'
ton which may be taken out for emer'
| gency uses.