The morning journal-courier. (New Haven, Conn.) 1907-1913, 1908-05-21
NO CURRENCY LAW
WILL BE ENACTED
Senate and House Unable to
Agree on Compromise
for Respective
Measures.
ARE H0PELESSLY AT ODDS
appointment Of Currency Commits
sion Provided for In BIZ 10 BE
Introduced by Aldricl,
To-day.

washington, ID, -, May 20,-lne ap-
pointment o; currency commission to
be composed OF nine senator's and nino
members Of the house will be provided
for in bill which Senator Aldrich will
introduce In the senate tomorrow, and
IL this Is passed by congress 1t will
comprise all Of the financial legislation
that will be enacted at the present ses-
sion. This course was decided upon
today by the conferees on the Aldrich-
Vreeand currency bill at final con-
ference which demonstrated beyond
question that there Is no hope of get
ting an agreement between the senate
and the house on an emergency meas
ure. Undoubtedly this decision means
that leaders In congress are determ-
ined upon final adjournment of con-
gress next Saturday.
The sentiment Is such that In either
body there appeared to be no chance of
compromise, and II Is said that If con-
gress were to stay In session a week
longer neither could be induced to
yltlhs III NlNh VI ali llitSt vi AullT
stances the conferees reached the opin-
ion that 1t would be better to pass
bill providing for a commission. 1t Is
not expected that either the senate or
the house will discharge its eonferees
and II no report is ready from the com
mission at the next session Of congress
an emergency measure might then be
agreed upon II there is need at that
time for immediate action.
Mr. Vreeland, leader Of the house
managers in the conference today made
the following statement for publica-
ton:
"The conferees on the part OF the
house and the conferees on the part of
the senate, held today what will prob
ably be their last meeting during the
present session. We have been unable
to agree upon reconciling the bills
passed by either house. The situation
will remain in statu quo until next
winter.
THE senate bill provides that state,
municipal and district bonds shall be
the basis for emergency circulation to
the extent Of 300OO0,00O All Of the
national banks In the United States
hold, not to exceed sixty, or at the
outside, seventy million dollars worth
of these bonds which could be used for
circulation. The great cities of New
York, Boston, Chicago. and St. Louis
together hold less than s20,000,000 OF
these bonds. If, then, these bonds are
to be used as basis for emergency
currency, the national banks Of the
United States would have to divert
more than $i0O,0O0.O0O from commercial
channels and tie them up in bonds FOR
which they might never have any use
and which, the worst, would only be
used once in 10 or 10 years. The
bankers Of the west and south partic.
ularly say that they do not own these
bonds and could not afford to divert
to tie them up In this class Of securi
ties. The bankers. hundreds of whom
have either appeared here or writer
here, are almost unanimous in sayint
that they could not afford to and would
not purchase these bonds. Therefore
1t seems that the remedy offered b,
the senate would be useless in case o
panic.
IAN agreement might perhaps hav'
been reached had the house conferee
consented to require 80 per cent. o
the securities put up with the clearing
house associations in trust. to be bonds
In the opinion of the house conferees
this would offer the banks a remed
which they could not and would no
use.