New-York tribune., 1908-04-14
NEW CURRENCY BILL
CAUCUS TO PASS ON 1T.
ur VreeIand Introduces Substitute
for 4ldrich Measure.
TFrom The Tribune Bureau. ]

washington, April 13.-The House leaders
have set on foot a move in connection with
e,sncial legislation which is keeping every one
.,essing but Speaker Cannon and his associates
= maintaining their own counsel and the
.bers are at liberty indulge in as much spec
.5..ion as they please. First. the Speaker has
:, IN motion the machinery for party caucus
conference on Thursday evening, for the pur-
&c Of considering financial legislation. Sec
I'd he has apparently sanctioned certain
ssrges from the AIdrich measure which include
,-oyision for an asset currency; and finally,
psn-esentative Vreeland of New York, with
re approval of the Speaker and his associates,
.a-5sv introduced a substitute for the Aldrich
-, which the caucus Will be asked TO approve.
-,s Vreeland measure follows substantially
.s text Of the Aldrich bill. but provides that in
s5,-jon 10 bonds as security for emergency cir
-,.-ion ten or more banks may form clearing
ho,ss associations. each representing aggre-
ate capital and surplus OF not less than $40.
ooa oa0 and that the certificates of such asso
,is,ions or commercial paper approved by them
- he deposited with the Secretary of the
-a.s,,-, who is authorized to issue thereon cir
,rlsrion 70 the amount OF - per cent Of the face
,slue O. the securities.
The Vreeland bill omits the Johnston amend
,-sr, recurring banks to keep not less than
.othi-ds of their legal reserves in their own
vsuIts and permitting them to keep One-third
q. ,be securities stipulated in the bill. It also
,,s the la Toilette amendment prohibiting
,osns 10 any concern in which the directors or
.a7,s-s of bank are financially interested.
This amendment is regarded as likely 10 work
.s-;oue hardship on bankers in small towns,
,ao are generally interested in every financial
.,,srprise Of Importance in their communities.
i5a in, n bfs
commission 70 prepare plans for general revi-
s,or Of the currency system. but he will sub
nit such provision. in the form Of an amend
-,srt 70 the conference on Thursday.
Inst what the purpose Of the Speaker is in
..,,-io-fng the vreeland measure is not known
ss ne has been told that no form Of asset cur
-ercv will be approved by the Senate, and il is
r-e5ic-ed that should the House conferrees
f-zist on this provision the measure would die
IN conference II Is regarded as probable, how
eve- that = is the Speakers purpose, first 70
obtain the approval of the majority for the
T--eelard measure, and later TO instruct the
House conferrees 10 yield on this provision.
provided the Senate will yield on the others,
which the Senate would probably cheerfulIy do.
Z IS regarded as irnproba bic that the Commit
-eA N Banking and Currency will report any
measure although II may report the Aldrich bill
adversely. Il is understood that Representative
Burton. OF Ohio. will lead the fight on the floor
FOR the Vreeland measure. or such modification
. il as may be approved by the caucus The
desire for an early adjournment is being used 70
promote the financial legislation plans of the
leaders. II being plainly intimated that the
President will not consent 10 adjournment un-
less some measure providing for emergency
currency is sent 70 him for signature
II the provision for the creation of eunemgencl,
clearing house associations had been in force
LAST October" said Mr- Treeland to-day an as
ISOLATION could have been formed in New York
in tTerty-four hours 10 which S161 900 O0sD could
have been Immediately issued by the Secretary
q the Treasury and equally speedy action could
have been taken in other cities"