The Washington herald., 1908-04-15
CAUCUS ON CURRENCY
House Will Decide on Finan-
cial Measure.
MAY AMEND ALDR1cH BILL
VreeIand's Propositions May he i'm
Final Proposal Placed Before the
HOuse-CharIes G. Dawes Approves
of Rhode Island Senator's Measure,
Edmund d. Fisher Opposes 1t.

Hearings before the House Committee
on Banking and Currency on the Aldrich
currency bill viii be concluded to-day
Whatever the action Of the committee on
the measure the House itself viii finally
decide Just what kind Of currency IegisIa-
tion shall be enacted at this session. The
programme may be made in a Republican
caucus. The indications are that a caucus
to determine the exact form OF currency
legislation 10 be passed at this time viii
be held this week.
The House leaders are agreed that the
Al6rich bin should be passed with certain
notifications that have been proposed
since the measure has been up for con-
sideration before the Committee ON Bank
ing and Currency.
The important amendments TO be in
corporated IN the Aldrich bill. according
10 House leaders. is that proposed in a
bin introduced by Representative Vree-
land. OF New York II provides for the
creation Of clearing house associations.
which shall be authorized 70 issue notes
upon commercial paper. as well as upon
government, State, municipal, and county
bonds. as provided In the Aldrich bill
as IT passed the Senate
Dawes FavOrs Measure.
Charles G. Dawes. of Chicago. and Ed
mund D. Fisher, the latter chairman of
the legislative committee of the New
York state Bankers Association, were
the principal speakers before the Com
mittee on Banking and Currency yester-
day. Mr., Dawes spoke in favor of the
Aldrich bill. and Mr.. Fisher in opposi-
tion 10 IT,
Mr. Dawes appeared, as he expressed IT,
as "a practical banker" He declared that
emergency currency legislation should be
passed in order TO forestall probable fnan-
cial distress in the fall
The country demands protection. f" said
Mr. Dawes. such protection from a
money famine, and consequent business
depression. as IS afforded in the Aldrich
bill
IF this remedial legislation does not
go through st this time the country must
be prepared --o experience another season
OF trouble and excitement, and the re-
sponsibllty for it if it comes. must be
placed upon the shoulders Of the OBJ
structionists in Congress-
Mr Dawes said that it appeared i'm
possible for the financial doctors TO unite
upon any general plan of banking aud
currency. We are confronted by a senti-
ment which makes it impossible for anv
radical change TO be made In our bank
ing laws, he added
Is Duty OF Congress.
"In these circumstances it is the duty
Of Congress 10 pass a bill that win pro- |
vide an abundance of currency. for times
Of emergency" Mr.. Dawes suggested
that the bin should be amended so as to
provide that a hank of issue shall be re-
quired to take up the emergency notes In
lawful money.
Mr.. Fisher denounced the AIdricb hlu /
lie wanted a bill framed on scientific /
lives. Mr.. Fisher closed his argument by /
presenting a scientific basis" for a cur /
rency bill, as follows:
Retain bOnd-seeured notes. but tav then,
20 such an extent that they VIII Rradu-
ally be retired Authorize cre5it or asset
currency notes under the guarantee fund
ana quick-redemption plan provided bv
The Fowler bin. These notes TO bear
lesser tax than bOnd-secured notes so
lhat the new issue will AUTOMATICALLY he
substituted for the old.
The government to exchange . Del. cent
bonds for new per cent bonds. so that
there may be no breach of faith on the
part OF the government toward national
banks or other holders Of per cent
bonds
To Retire Notes.
The government each year 10 retire a
percentage of United States notes green
bdcks). making payments from surDlus
revenue until all are finally redeemed
The government TO deposit current re-
ceipts IN national banks, but to retain
appropriate reserves in gold for outstand-
ing notes
Government deposits to be secured nv
United States bonds. The government al
WAYS to maintain q gold fund fnr -