Albuquerque citizen. [volume] (Albuquerque, N.M.) 1907-1909, 1908-05-12
HALF BILLION FOR
EMERGENCY MONEY
All but Sixteen Republican Mem
berS Support Bill as Prepared
by Special Committee and II
viii be Considered In Con-
greSS In Short Time.

Washington, May 12.-The Repub-
lican members in the House met last
night and by a vote of 1913 to 16
agreed on an emergency currency
bill, which was drawn UP by COM
mittee appointed by a similar confer
ence held last week. The committee
consisted of the following members:
vreeland of New York, Burton OF
Ohio, Weeks of Massachusetts,. Nc
Kinley of Illinois, and Knowland OF
California.
The conference also drew up a plan
of procedure which will be placed In
the hands of the committee on rules,
and by which the will of the major
ity, as expressed at this conference
will prevail.
The bill ratified provides for an
issue of emergency currency not to
exceed $500, 100000, obtainable for
circulation through the national
clearing house associations scheme
The bill was adopted in exactly the
form as presented by the conferences
committee with the exception of two
minor amendments.
Among those voting against the bill
were Representatives Cooper (Wis-
consin), McMOran (Michigan), Muir
dock CKansas), Darragh (Michigan)
Campbell (Kansas), Cushman wash
ington), Waldo (New York;, Kenne-
dy and Keifer (Ohio). and Fowler
(New Jersey). representatives Prince
Gllinois) and Hayes California; quit
the conference shortly before the vote
was cast.
The chief points of the bill are set
forth in the following synopsis and
statement made by Mr.. Vreeland:
Following the instructions of the
conference the committee used the
previously introduced Vreeland bill as
working basis for the new act. Sec
tion l of that bill provides that banks
not less than ten in number, with an
aggregate capital and surplus of at
least 100000, may form voluntary
associations to be known as clearing
house associations; that if the needs
Of the country for currency are so
pressing that in the opinion of the
secretary of the treasury an addition
al issue of bank note circulation is
necessary, the banks belonging to a
clearing house association may de-
post securities, including commercial
paper, in quantity and amount ac-
ceptable to the association. The as
sociation may thereupon appeal to
the secretary of the treasury and he
may issue an amount of additional
currency not to exceed rs per cent
of the securities so deposited. The
changes made in that section In con-
structing the conference bill are that
the clearing house associations must
be formed In contiguous territory:
that not more than one shall exist In
any one city and that no bank can
belong to two associations.
THE conference committee further
provided that the capital and surplus
of each bank belonging to an associa-
tion shall be Jointly and severally LA
Bile to the government for any defi-
cheney in the amount necessary to pay
the circulating notes from the sale
of such securities so deposited in case
the notes are not redeemed
"a further change IS that a nation
al bank need have but 40 per cent Of
its capital in bond secured circulation,
instead Of so per cent as a condition
precedent to taking out additional cir
culation through an association. An
additional provision was added that
banks must keep a reserve in gold or
lawful money against such additional
circulating notes, as Is now provided
by law against deposits.
The committee reduced from
$3.50, 900 900 to $5OO,OO0,OOO the limit
of additional circulation which may
be taken out for emergency uses"
Mr.. Vreeland commented dsap-
provingly upon the action OF Chair
man Fowler Of the banking and cur
rency committee, who is the leader
Of the Republican insurgency on the
currency question, in sending a copy
of his own most recent currency bill
and letter in relation thereto and 10
the new Vreeland bill. 10 six thou
sand bankers throughout the country.
Mr.. Vreeland said:
The parts Of Mr.. Fowler's letter I'm
which he praised the currency bill
which he has introduced are right
and proper. Some glaring and i'm
portant misstatements OF fact, how
ever, were made in relation TO the ef-
fects of the new Vreeland currency
bill"