The San Francisco call., 1908-05-27
CONGRESS IO.PASS
A CURRENCY BILL
Compromise VIII Be Made by
the Welding of the Two
Measures

WASHINGTON, May Z6.-The senate
and house conferees on the currency
bills held three meetings today and at
the third. which did not adjourn until
$50 o'clock, reached a tentative agree
ment on which will be based the COM
promise agreement which the repub-
licans of the conference hope to reach
at an adjourned meeting tomorrow
forenoon. At the conclusion of the
final meeting tonight the probability
OF the reporting of compromise bill
TO the two houses of congress was
much stronger than at any previous
time this session. Indeed. it was con-
eidered certainty.
Following are the main points of the
understanding that has been reached;
The reserve provisions in the Vree-
land bill, calling for retention of %
per cent in central reserve cities and
IS per cent in other reserve cities. is
reduced to a straight 10 per cent re-
serve without reference TO classified
ton Of cities.
A higher rating is given to state and
municipal bonds than to other seeuri-
ties upon which emergency currency
may be taken out by banks That is
TO say, county. state and municipal
bonds will be valued at not TO exceed
20 per cent Of their market value, both
without regard to whether they are Of
1ered as security for additional circula-
ton under the national clearing house
plan or under the individual bank bond
security plan.
The amount of circulation issuable
upon q commercial paper basis is lirn-
1ted to 40 per cent Of the capital Of the
applicant bank, instead OF 100 per cen1
as provided in the vreeland bill
The redemption fund requirement OF
per cent under the present law is in
creased TO 10 per cent for all emer-
gency currency taken out.
The total amount of emergency cur
rency issuable is confined within q
maximum of s5oo.000.0O0 as provided
by the Aldrich bill.
A time limit of three years is placed
upon the life Of the bill
WELDING OF TWO BILLS
In this preliminary and purely tenta-
tive welding of the Aldrich and Vree-
land bills into a modified measure COM
prising the principal features of each
and making 1t possible TO obtain an
emergency currency under two distinc,
and radically different forms of appli-
cation and security, several of the
minor details OF financial machiner,
are not yet fully settled. They will be
sition when ii has become a settled
fact that a bill is to be reported By
the conferees. Meantime the working
draft of the compromise bill, as out.
lined in the foregoing paragraphs, will
be printed tonight at the government
printing Office, so that the republican
conferees may have the text before
them when they meet ct $3.50 tomorrow
morning TO decide upon the attitude
they will take and maintain in the ful
conference to be held immedfatels
afterward, and in which the democratic
members of the conference will fol
the first time participate.
If a bill is reported out of the con
ference tomorrow 1T will be passed b,
the house tomorrow. Notices were sen
out tonight by order Of Speaker Cannon
for every republican member to be IL
his seat at IL O'Clock. when it is ex'
pected the compromise bin will be re
ported.
Intimates of Speaker Cannon assert
ed today that in the event that a bill
along the lines of the proposed com
promise is brought in ii could be passed
by the house after an hours debate
This remark is interpreted to mean tina