The Washington herald., 1908-01-01
CURRENCY BILL SOON
Aldrich Hopes to Report One
This Month.
FOR EMERGENCY MONEY ONLY
Temporary Relief Issues by National
Banks to BE Provided For, PrOba-
bIy with state and Municipal
Bonds as Securfty-Tax to Secure
Retirement May Be Per Cent.

currency reform bill viii be reported
| TO the Senate about the middle Of Janu-
airy. That is the present plan of leaders
Of the Finance Committee, who have had
the subject under consideration during
the holidays They hope 10 have it COM
| pleted during the second week Of Janu-
airy that Congress is in session Much
will depend upon the diffleulty of bringing
the advocates OF various schemes into
accord with a harmony plan.
When the Finance Committee meets.
which will probably be next week. an
effort will be made to convince the sup
porters of the central-bank idea, chief
of whom is Senator Hansbrough. of
/ North Dakota, that il is not feasible at
/ this time. A similar effort will be made
with reference TO those who want the
government 20 guarantee deposits IN ma
tional banks AS soon as Senator Aid
rich, of Rhode Island. chairman Of the
committee, returns, he will try to per
suade the Senate Democrats to cooperate
toward the enactment OF a simple meas
ure Of relief. Mr.. Aldrich is more sue
| cessful, perhaps, than any other man in
the Senate In conducting diplomatic ne
gOtiatiOns with the Democra ;.
Only for Stringency Relief.
The bill will comprise little on nothing
beyond provision for an elastic currency,
to be Issued by national banks in time
Of financial emergency. At first 1t was
intended that officers Of clearinghouse
associations should be the judges as to
what banks should issue extra circula-
tion and in what sums. Objections were
found TO this. chief Of which was the
fact that clearinghouse officials are not
legally recognized by the Federal govern
ment. Accordingly il has practically been
decided that the subtreasureTs shall be
the advisers Of the Treasury Department
/ about the issuance OF emergency cur
rency. There are eight subtreasuries.
The heads Of those institutions are neces-
sarily quite familiar with the banks and
with financial conditions in their own
/ immediate territory. As a rule they are
( fairly capable men
I Under this plan il is proposed to divide
/ the entire country into eight sections and
/ give each subtreasurer authority in his
own section with reference to applica-
tions for extra currency. The bill will TX
a limit to the total amount Of emergency
circulation that can be used. but the ex-
act amount has not been determined.
Neither has the rate OF taxation. but II is
certain TO be quite high probably as high
as : per cent.
Security BlRReSt Problem.
The greatest problems the Finance
Committee leaders have in framing the
bill concern the kind Of bonds 70 be ac-
cepted as basis for the emergency cur
rency. II is believed that the committee
eventually viii restrict the securities,
other than government bonds, whiciS the
Secretary Of the Treasury may sccebt, TO
State and municipal bonds. Many fnan-
ciers are urging that this is the only safe
plan II is claimed that the amounts Of
such bonds outstanding would be ample
for currency purposes. and that no COM
plications in which the government could
be a loser would be likely 10 occur.