The midland journal. (Rising Sun, Md.) 1885-1947, 1908-01-24
WASHINGTON LETTER.

There are now two currency measures
all the chances of passing and the other
but little 1t is the more logical and
scientific of the two that seems to stand
the least show. The first is what is
known as the Alrich Currency Bill and
has been alluded to and described often
enough for most people to know in a.
general way what it is 1t is bill that
provides for the issue of national bank
notes based on the deposit of state, mn
nicipal and railway bonds in the Treas
ury, and aims to supply an additional
bulk Of currency to be called out when it
is needed aud subject to heavy enough
tax to force its retirement when the
necessity for it 20 longer exists. This
bill is now being discussed in the Senate
Committee on Finance, and several
amendments have been offered to it and
Professionally accepted. One of these
provides for the amount of additional
note circulation to be increased to
maximum of $500. 1000, 900 instead Of
$3.50, 900, 900 as in the original bill With
this increase in the amount Of the note
circulation it is proposed to have the
retirement tax based ON sliding scale
running up to 10 per cent instead of being
fixed at fiat six per cent, as in the orig
inal bill. The provision for the deposit
of municipal bonds also removes the
minimum limit of bonds from towns of
20. 900 inhabitants and makes any mu.
nicipal bonds available This it is said is
to remove the charge that the smaller
towns of the West were Disseminated
against.
OF course number of other amend
meuts will be offered both in committee
and after the bill gets on the floor of the
House and Senate. But they are NOT apt
to change the inherent nature of the
measure.
The other bill, which does not now
seem to have the backing of anyone
much except its originator, is the work
of Representative Charles Fowler, the
chairman of the House Committee on
Banking and Currency This bill pro-
poses a much more radical change in the
banking laws than the Aldrich bill. 1t
would call in all of the government 2 per
cent bonds now held by the banks and
place them in guarantee fund, return
ing the purchase price paid for them to
the legitimate channels of trade. where it
belongs. The government would hold a
guarantee fund of about $500. 900, 900 in
bullion of gold and silver and would issue
notes against this absolutely guaranteeing
the issue This would save the banks
from the loss that would come from the
shrinkage of values that would be sure to
follow any sort of war and would give
govern ment- guaranteed bank circulation
that would expand and contract accord
ing to the needs of trade and would
divorce the financial operations of the
government absolutely IRON commercial
conditions. AS has been said there is
not much hope that this radical measure
will pass, but it has a number of scien-
ti6c advantages over the Aldrich bill, and
an attempt will be made TO substitute ii
for the latter bill when that comes up for
however, that if it is SO substituted, the
whole matter will be amended and COM
promised in conference so that the final
bill will not bear much resemblance to
the simple scientific measure that is now
proposed.
~
Interest in the Treasury Department is
now divided between the personal course
of the Secretary of the Treasury aud the
response that he is making to the de-
mand on him for information about the
recent Panama bond issue. Secretary
Cortelyou denies that he has had any row
with the President or that he contem.
plates resigniug from the Treasury. Mr.
Satterlee of the Knickerbocker Trust Co.
of New York has modified his original
statement about the Presidency of that
company having been offered to Mr..
Cortelyou and says merely that it ''may
be offered to him" This change Of re-
port as to Mr.. Cortelyon's cabinet status
may be taken for what it is worth. At
any rate there does not seem to be any
immediate prospect of a change.
There is good deal of interest in the
report that be is preparing at the instance
of Congress as to the recent issue of
Panama Bonds. There was great deal
of criticism of the Secretary for his course
in issuing these bonds. 1t will be remem.