The Birmingham age-herald., 1908-05-12
Conference of Republicans Has
 Come to Conclusions
EMERGENCY PROVIDED FOR
MT. vreeIand Explains the Fine Points of His Compromise Bill, Which Will Be Brought Up In the
 House Committee.

Washington, May 11.-By vote of 138 to 160 the republican members of the House of Representatives 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 Illinois and Knowand of California; By an equally decisive vote the conference placed in the hands of the republican members of the committee on rules the determination of the procedure by which the will of the majority thus ex- pressed, shall be carried into the House.
 The rules committee has choice of methods for putting the conference bill through the House. The committee can bring in a rule discharging the banking and currency committee from further con- sideration of the Aldrich bill or the Fow- Ter currency commission bill or the Will Hams currency bill. Either one of those measures will then be before the House for action. and the procedure would be to strike out all after enacting clause and under a one-amendment-only rule substi- ute for the body of the bill the confer ence bill.
 The bill ratified tonight provides for an issue of emergency currency not to ex- ceed s5OO, 100000 obtainable for circulation through the National Clearing House as- sociation's scheme.
 vreelands Statement.
 The chief points of the bill are set forth in the following statement made by MT. Vreeland:
 Following the instructions of the con- ference, the committee used the previous ly introduced Vreeland bill as a working basis for the new act. Section one of that bill provides that banks not less than ten in number with an aggregate capital and surplus of at least s5,OOOOO0 may form voluntary associations to be known as clearing house associations:' That if the needs of the country are so pressing that in the opinion of the Secretary of the circulation is necessary the banks be- longing to a clearing house association may deposit securities, including com mercial paper, In quality and amount ac- ceptable to the association. The associa- tion may thereupon appeal to the Secre- tary or the Treasury and he may issue an amount of additional currency not to ex- ceed 75 per cent of the securities so de- posted. The changes made in that sec tion in constructing the reference bill are that the clearing house association must be formed in contiguous territory, that no more than one shall exist in any one city, and that no bank can belong to two associations.
 "The conference committee further pro- vided that the capital and surplus of each bank belonging to an association shall be jointly and severally liable to the government for any deficiency in the amount necessary to pay the circulating notes after the sale of securities so de- posted, in case the notes are not re- deemed.
 "A further change is that a national bank need have but 40 per cent of it's cap ital in bond-secured circulation, instead of 50 per cent, as a condition precedent to taking out additional circulation through an association. An additional provision was added that banks must keep a re- serve in gold or lawful money against such additional circulating notes as is now provided by law against deposits.
 "The committee reduced from S75O OOO, ,O0O to $500,0 ,000 the limit of additional circu- lation which may be taken out for emer- gency uSeS''