The sun., 1908-05-27
CURRENCY AGREEMENT TO-DAY
ALL ESSENTIAL POINTS OF DIFF.
FERENCE ARE SETTLED.

senate--LAw May ne Limited to Three
Years. Compromise ON the Security.
WASHINGTON, May 2e.-All essential
POINTS OF difference between the Senate
and tho House conferess on the emergency
currency legislation disappeared to-day
and it is now practically assured that they
will report an agreement tomorrow. Fur
iher than that there IL general Under
standing that the report will be adopted
by the House tomorrow afternoon, and in
spite Of some gossip with little substance
that the Democratic Senators will talk
the bill to DEATH a hopeful feeling pre-
walls that there will be no protraoted fili-
buster and that vote will be had in the
Senate on Friday or Saturday.
The Republican members Of the confer
ence committee. Senators Aldrich, Hale
and Allison for the Senate and Representa-
tives vreeland, Burton and Weeks for the
House, had two conferences to-day, and
when the second ended this evening it was
admitted that the compromise bill to be
submitted as part OF the conference report
was well on it's way to completion.
The Republican conferees will have
another meeting at $3.50 tomorrow morning
and afterward will call in the Democratic
conferees to pass on the report which the
Republicans wih have ready. 1t is ex-
pected that the report will 60 to both housee
shortly after each assemblies. As a privi-
legged matter the report will be called up
in the House at once and will he voted
on after forty minutes debate. A canvass
OF the House Republicans is said to insure
the adoption Of the report.
Republican Senators are inclined to
doubt that there will be Democratic
filibuster at their end of the Capitol. The
Democratic opposition in the Senate will
he general, but nobody has been found
vet who will stand sponsor for the intention
10 prevent vote by the time honored
practice OF talking against time. The
Democratic Senators are opposed partic-
ularly to the provision for the acceptance
Of commercial paper as security for emer-
gency circulation.
that there are one or two points Of differ
ence yet to be adjusted. the agreement
is complete to all intents and purposes.
The amount Of the issue Of the emergency
circulation authorized is $500. 900, 900. The
fund to be held In the United States Treasury
as an additional guarantee Of the redemp-
tion OF the notes is to consist Of 10 per cent.
Of the amount of the issue.
The bill is to be in force for limited
period only, and while 1t was said by the
conferees that this point was yet to be
adjusted, 1t seems assured that the period
will be three years. Within that time
Congress will endeavor to enact a permanent
revision of the currency laws.
The main point Of difference between the
two houses involved the use Of commercial
paper as security for emergency circulation
as provided in the Vreelnnd or House bill.
The Aldrich bill provides for bond secured
c,hrenoy. After much discussion the con-
ferees agreed to retain features OF the
security provisions Of both bills. There
was much dispute over a proposition to
limit the amount Of bond secured currency
and asset secured currency to SO per cont.
in each case. A tentative agreement was
reached to-day that there should be no
fixed division Of that character and a. the
provision ID drafted finally It will provide
probably that it shall be optional with
banks and clearing house associations to
offer either bonds or commercial paper as
security without reference to any proper
tionate distribution. II was the proposition
TO make the distribution half and half that
caused tho split between the oonferees on
their first attempt to get together.
In explanation Of this arrangement It
was said that II financial panic should
occur in a community or section OF the
country where financial bankin& instead
Of Commercial banking was predominant
it would be preferable to issue emergency
currency on the basis Of bonds. and to pro-
vide that bond secured currency should be
limited 10 one-half Of the total issue author
lied by the bill would be unwise. The ex-
PLANTATION was applied also to places where
commercial paper would be the preferable
security for those desiring to issde emer-
gency notes. In other words the needs Of
the situation win determine whether
there shall be a greater proportion Of bond
secured or paper secured currency.
1t was said tonight that tho oonferees
had not quite reached an agreement on the
question OF fixing valuation on the differ
ent classes Of securities provided for by the
proposed legislation. The Aldrich bill per-
mits the acceptance 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
provided for In the Vreeland bill are to be
accepted at rs per cent. Of their face value.
The Senate conferees have been making
a strenuous fght to have the House oon-
ferees agree that commercial paper shall be
accepted at much lower valuation than the
Vreeland bill authorizes. They sought
even to fix the valuation as low as rs per
cent and made a strong argument against
going higher than 30 per cent. The House
conferees stood out against giving bonds
such high valuation and wanted all securi-
ties to be valued at rs per cent. While, It
was declared after the last conference to-
day that this matter would not be adjusted
finally until the conference to be held to-
morrow morning, 1t was intimatsd that the
value Of commercial paper would be fixed
at rs per cent. and bonds.at 90 per cent.
Meanwhile the House leaders are holding
up the conference report on the popular