The Washington herald., 1908-05-27
CURRENCY REPORT
PLAN FOR TO-DAY
Continued from Page One.

CT House BILL The Aldrich or Senate
bill provided for a bond-secured cur
rency. After much discussion the con-
ferees agreed to retain features Of the
security provisions Of both bills. There
was much dispute over proposition to
limit the amount Of bond-secured cur
rency and asset-secured currency to 50
per cent In each case. A tentative agree
ment was reached yesterday that there
should be no fixed division OF that char
acter, and as the provision Is finally
drafted Il probably will provide that il
shall be optional with banks and clear
ing-house associations to offer either
bonds or commercial paper as security,
without reference to any proportionate
distribution. Il was the proposition TO
make the distribution half-and-half that
caused the split between the conferees
on their first attempt 20 get together.
In explanation of this agreement II was
said that If a panic should occur In a
community or section of the country
where financial banking" instead OF
commercial banking" was predominant,
II would be preferable 10 issue emergency
currency on the basis of bonds, and to
provide that bOnd-securcd currepcy
should be limited TO One-half of the total
issue authorized by the bill would be un-
wise.
banking Needs the Basis.
The e,planation was applied also 10
places where commercial paper would be
the preferable security for those desir-
ing TO issue emergency notes. In other
words, the needs OF the situation will de-
termine whether there shall be a greater
proportion of bond-secured or paper-se-
cured currency.
1t was said last night that the con-
.ferees had not quite reached an agree
ment on the question of fixing a yalua-
ton on the different classes OF securi-
ties provided for by the proposed legisla-
tion. The Aldrlch bill permits the ac-
ceptance OF State county. and municipal
bonds at 90 per cent OF their face value
as security for proportionate amount Of
circulation. All classes Of securities pro-
vided for in the Vreeland bill are TO be
accepted At 75,per cent OF their face value
The Senate conferees have been max
ing strenuous fight 10 have the House
conferees agree that commercial paper
shall be accepted at a much lower valua-
tion than the Vreeland bill authorizes
They sought even TO fix the valuation as
low as Is per cent, and made a strong
argument against going higher than 20
per cent. The House conferees stood out
against giving bonds such a high valua-
ton. and wanted all securities 10 be val
ued at 70 per cent While it was declared
after the last conference yesterday that
this matter would not be finally adjusted
until the conference to be held this morn
ing 1t was intimated that the value Of
commercial paper would be fixed at %
per cent and bonds at 80 per cent.
building Report Held Up.
Meanwhile the House leaders are hold
ing up the conferees' report on the popular
public building bill. in which nearly every
member IS interested. Il is realized that
II the conference report is adopted and
the bill sent to the President # viii be
impossible 20 hold quorum IN Washing
ton. so anxious are Representatives 10 get
back 10 their districts.
Representative Burke. OF Pennsylvania.
the acting Republican whip. has sent tel
egrams 10 all absent Republican members
to return to Washington az once TO help
put through currency legislation
Democratic Senators are not at all con-
vinced that u would be good politics 20
attempt 10 kin currency legislation by a
filibuster Their leaders have not reached
definite agreement as to a course Of ac-
tiOn. but the chances are that they will
content themselves with expressing dis
approval OF the asset currency feature
OF the conference measure and go 10 the
country on the issue that the Republican
bill is fun Of danger TO the nations fnan-
cial stability.