The morning journal-courier., 1908-05-12
Emergency Measure of the Conference Committee Accepted by Vote
 of 138 to 16.
YREELAND BILL REFORMED
Provides for Emergency Circu lation Based on Commercial Paper-Many Alterations Criticism of Fow-
 ler's Action.

Washington, May 11.-By vote of l5S to IS the republican members of the house of representatives tonight agreed to an emergency currency bill drawn by the special committee appointed by the same conference last week, and consisting of Representative Vreeland, of New York: Burton, of Ohio Weeks, of Massachusetts; Mckinney, of Illi- nois, and Knowland of California. By an equally decisive vote the confer ence placed in the hands of the repub- lican members of the committee on rules the determination of the pro- cedure by which the will the majority, thus expressed shall be carried into effect in the house. A resolution to re- quest the banking and currency com ] mittee to bring In a report on the AL 3drich bill to give the house parlia- mentary basis for the substitution of 1.-the conference committee bill was de- feated.
 4 The rules committee has a choice of Efmethods of putting the conference bill < Through the house. The committee can sfbring in rule dlscharging the bank ling and currency committee from fur 'fthur consideration of the Aldrich bill For the Fowler currency committee bill, Ibr the Williams currency bill Anyone .of these measures will then be before sSthe house for action, and the procedure Sswould be to strike out all after the en- rhcting clause and under a one amend If8,aanf npttt r,yta nett t,,fa fa, ha oJ,, sbf the bill, the conference bill
 The chief points of the bill are set orth ia the following synopsis and tatement made by Mir. Vreeland before ' ne conference met.
 !. Following the instructions of the . conferences, the committee used the <, Previously introduced Vrecland bill as 2 working basis for the new act. Sec ;afion of that bill provides that banks q ot less than ten in number, with an \ ggregate capital and surplus of at n east s5,000.000. may form voluntary \ ssociations to be known as clearing .f ouse associations; that if the needs ,sf the country for the currency arc 10 pressing that in the opinion of the dFecretary of the treasury an additional ~fssue of bank note circulation $ nec- ssary, the banks belonging to q Bearing house association may deposit Xfcurlties, including commercial pa Her, in equality and amount acc ,ptabe esb the association. The association AAay thereupon appeal to the secretary Bf the treasury and he may issue an slnount of additional currency not to RNceed seventy-five per cent of the Jfcurlties so deposited. The changes ade in that section in constructing 1Ae conference bill are that the clear g house associations must be formed contiguous territory; that not more an one shall exist In any one city; Ind that no bank can belong to two [ I sociations
 \ The conference committee further 1 fovided that the capital and surplus
 each bank belonging to an associa- N ,n shall be jointly and sever4,ly lia- \ to the government for any defc- 1ncy In the amount necessary to pay
 e circulating notes after the sale of Il curities SO deposited, In case the N tes are not redeemed.
 Fl IA further change Is that a national
 Ink need have but forty percent of
 capital In bond secured circula ton, Fl stead of fifty per cent. as condl.
 In precedent to taking out addition
 circulation through an association.
 additional provision was added
 Tt banks must keep reserve In gold
 lawful money against such addition
 Circulating notes, as Is now provided
 law against deposits.
 Tie committee reduced from sT50 Hp,o0o to s5)0,oOO,OoO the limit of ad- r ional circulation which may be talk out for emergency uses"
 Commenting upon the action of
 airman Fowler of the banking and
 erency committee, who is the leader
 the republican Insurgents" on the
 trency question, in sending q copy of
 own most recent currency bill and
 letter relating to 1t and to the new
 eeland bill to 5000 bankers through
 the country, Mir. Vreeland said
 Many members of the banking and
 rercy committee are not pleased
 h tho action of Chairman Fowler
 using letterheads on which are
 1ted the names of the members of
 committee to convey his personal
 liors upon currency matters to the
 ikers of the United States"