The Washington times., 1908-08-26
BANK LAW REVISION
. IS STRONGLY URGED
Monetary Commission Fin
iShes Its Work of IN
quiry in England.
BETTER SUPERVISION
FOR NATIONAL BANKS
Aldrich-Vreeland Bill Is Given At.
tention-NO Imports ut Amend
ments Likely.
By J. C. WELLIvkR.

!
this country, has caused sO1neS surpris-
ed inquiry as TO what the commission
is likely 10 recommend 10 Congress the
coming session.
Since The AIdrich-VreeIsnd bill passed
Congress, IL has become widely known
that that measure included a good many
| crudites. While 1t was under consider
alton on the floor of the Senate the
suggestion was made that 1t was Inn
perfect IN an important respect. II was
pointed ont that while there was ample
/ provision for a bank getting into a nG-i
tional currency association. there was
no arrangement for il getting out. THIS
objection was suggested 10 gentlemen
in charge of the bill
80, that's an administrative detail"
they replied. When that GENES to the
Comptroller, let him use his discretion
and make a rule 70 cover il"
And so the question OF getting oUt
was left TO discretion OF an admins
trative officer. Recently shis very ques-
tion has come up 10 plague banks and
bankers in organizing such associa-
tions. The authorities have been indis-
posed 10 exercise their discretion %
the extent OF providing a rule for such
I
in unless such a rule were provided
So there has been grave difficulty about
completing the organizations,
Bank Notes to Look Alike.
One important provision OF the new
currency bin has been complied with
already. That IS the requirement that
all classes of bank notes should bear
the same appearance. The trainers OF
the new law recognized that If "em-
erRency currency bils Too - 1iherout
Z from other blrk nc es. the rGbIic would
AT once suspect the bank whose name
was connected with the emergency bills.
and there would be danger Of a run.
So the new law provides that ali bank
notes shall look alike.
The old-fashioned bank aote bore "A
legend that it was secured by Govern
ment bonds deposited with the United
States Treasury. The other day a man
in New Orleans got a bank note which
didn't read right He didn't recognize
its language. II said:
Secured by Government bonds or
other securities deposited with the
Treasury Of 1he United States"
The man who got tie note hurried
around to the editor Of a newspaper,
and asked what IL meant.
The editor studied Il and hshed out Of
his own pocket a bank note OF the old
regime, which ne CHANGED 10 have on
his person. lie compared them care
fully.
I Sec" he said at length. This IS
the new emergency currency. I viii
learn about this"
And promptly he telegraphed TO his
correspondent in Washington. saying
that the new emergency currency was
appearing in Louisiana. and asking what
il meant
The Treasury authorities explained
that the bills would all read alike here
after; they would all say they were
secured by United States bond or
other securities deposited with the
Treasurer of the United States" The
New Orleans sensation was spoiled.
Millions of New Currency.
The fact is that about s21600o.Oo0 of
the new currency has been prepared,
and plates have been made for use in
the cases of all new national banks,
with the new formula. Moreover, any
national bank heretofore organized,
whose currency Is sent in for redemp-
tion. will receive bills of the new issue
and style. Consequently, any bank is
liable TO have both kinds of bills out
standing at the same time This acct
dent may cause the same inquiry which
took place in the case of the New Or
leans bank. But It win mean nothing
whatever
The authorities of the Treasury say
positively that not a dollar of emer-
gency circulation has been issued under
the new law. More than that, some of
the wisest of them doubt whether a dol
lar ever will be issued under IT,
The AIdrich-Vreeland bill was hurried
to passage without great consideration
of details. Many features of IL were
criticised by the currency experts. But
the managers Of the bill, insisted on get
tins, II Dassed; begged that these should
not be unduly urged Too many de-
tails at this time will be fatal" they
urged And so the bin passed.
The question now IS whether the Aid
-Vreeland bill shall be amended at
lief IS that II viii not be, more than
this the impression is growing fast
that there viii be no need this year tC
issue any emergency circulation II Is
pointed out that If such circulation were
going to be needed, - would be ordered
bv this time. None has been ordered. 4
The crop moving rush Will be over by
November ]; money VIII by that time
have carried over the first stress Of the
autumnal urgency. and VIII be flowing
back again to the lroney centers.
Before the monetary commission
went away to Europe, however, il con-
s;dered its task and decided that some
thing ought to be at least proposed at
the coming session of Congress Tari-
ous matters were considered. II was
finally decided to propose no general
REORGANIZATION Of the country's money
system at this time. Rather. 1t was
thought best to accept present ,ondi-
fions for the time being, and iaereIv
10 look about and see if improvements
could be made in details. Accordingly
the Aldricil-Nreelen measure got some
attention II was agreed that an amend
ment to 1t should be undertaken at
This time for the reason that the bin
was still too newly ir the public mini
and - open up a discussion about II
would possibly make trouble
Then f. was concluded that as some
thing ought to be attempted, the gem
lcontRusd 0a sixth Pagel