The Washington herald., 1908-01-05
BILL NOT YET READY
Currency Measure. However,
Slowly Taking Shape.
SOME NOTIONS STILL CLASH
Conferences and Compromises Nee
essary Before Hueh-desfred Meas
ure Can Be Reported TO Congress.
Local Currency Tendency Not 40 BE
TOIerated-Cannon's western Trip.

On the eve Of the reassembling Of Con-
gress the legislative leaders find them
selves ready TO proceed with conferences
having for their purpose an agreement
upon the terms Of financial bill
Up to this time. however, no draft has
been made of q measure which is likely
to have the approval OF the leaders, and
it is evident that there must be much dis
cussion and some compromise in the Sc
clusion Of the conference room. before d
bin can be put in shape that it will have
a fair chance Of being enacted into law.
Whatever idea there was in the begin
ming Of legalizing the issue Of clearing
house certificates has been abandoned,
apparently In the minds Of some Of
those whose opinions viii count in the
final adjustment Of the currency problem,
It might be well to utilize the clearing
house machinery to carry the prospective
currency act into effect, such as having
the clearing house determine whether
bank should be permitted 10 issue emery
ency notes, and TO what amount.
1t is suggested also that no clearing
capital, in banks for which it clears, of
less than a specified amount say three
millions or four millions Of dollars, should
have the right 70 guarantee the issue Of
emergency notes. But there is doubt
among those who viii have a prominent
part in framing the proposed legislation
whether there can be this utilization Of
Clearinghouse machinery. and It would be
far beyond the fact 10 say that the mat
ter has a good chance Of being adopted.
Money Must BE Reliable.
To those leaders who are showing an
active interest in financial legislation, the
main feature Of the proposed emergency
currency must be that it convey ALSO
lutte assurance to the country that it has
all the strength. legality, and stability
OF United States and national bank cur
rency. There seems to be general agree
ment that il must not differ IN size or
appearance from the present paper cir
culating medium, and that il must not
be open 10 suspicion that it is not as
good as the paper money which comes
from the United States Treasury. It
must also be as acceptable In San Fran
cisco as it would be in Chicago or New
York. according TO the view Obtainable in
the best informed quarters, and not have
a merely local valuation, even by sugges-
ton. such as is the case with clearing
house certificates.
The statements that the currency bill
would provide for a tax upon the new
circulation as high as per cent is wide
OF the mark. There is a feeling that such
a high tax might have the effect Of cur
failing or preventing necessary issues In
times of financial stress, and this, OF
/ course, is exactly what the legislators are
/ anxious 10 avoid.
Cannon FavoTs Quick Action.
/ One Of the questions which is bound
+ to give considerable perplexity to the
/ trainers Of the proposed legislation, a.
cording to statements made yesterday,
/ IS the determination of the character and
scope of the securities which viii be
/ acceptable for the issue OF emergency
! currency. Certain state bonds. il is as
/ sumed, viii be satisfactory, but to what
extent municipal OF railroad bonds VIII
4 be regarded by the trainers Of the les1s-
/ lation as sufficiently stable is a long
/ way from settlement, although the indi-
/ cations are that their use in this Connec-
ton will be authorized by the bill. which
! viii represent the concrete thought Of
/ Congress- leaders.
! Speaker Cannon, who before the holiday
1 recess appeared TO look cOldly on any
! financial legislation, has returned from
/ the West in a different state OF mind. He
/ is now favorable to the passage Of cur
/ rency bill, and would like 10 see it placed
/ upon the statute books as early as pos
I sthie