Daily press. [volume] (Newport News, Va.) 1896-current, 1908-01-08
TO MAKE CURRENCY
MUCH MORE ELASTIC
Senator A|dr|ch Introduces His
Emergency Currency Measure
In The United States Senate.
SIX PER CENT TAX IS SCHEME
State, County and Municipal eonde to
be Security for Increased CT cuIa.
ton, With Heaviest Tax-Bankins
Laws OF New York and Massaehu-
sets Used as Models.
(Ry Assoclntcd Prcss. J

WASHINGTON. d. c., Jan. 7.-Sen.
ator Aldrich, chairman of the Finance
Committee. today introduced in
the Senate un emergency currency
measure the text of which has been
approved by Republican leaders.
The bill was referred to the FL
nance Committee for consideration
and report, II is declared to have
the support of Speaker Cannon and
Administration Republicans provides
for IN emergency currency issue. sub
Ject to per cent. tax the object of
the tax being to retire the currency
when emergencies have passed and the
measure has served its purpose. The
tax is greater than that proposed In
any former measure. and Is declared
to nave been made high purposely to
maintain the currency as purely of an
emergency character, ana TO prevent
Its becoming permanent or initiating
the, currency volume.
The amount that may be outstand>
ing Mt any one time Is limited ia
S2500O0.000. With the avowed view
OF expediting retirement of cIrcula.
ton When the emergency currency
shall have served Its purpose, there
is provision increasing the amount
that may be retired over and above
the present limits Of the existing Aid.
rich act, which provides that not over
s9,oOo.oO0 may now be retired in any
one month
An important and revolutionary pro.
vision of the measure Is one making
State, county. municipal and railway
bonds acceptable rs security. railway
n0nnG nnlV uhnr..
gage securities. This provision fol-
lows the savines.bank laws of New
York and Massachusetts. which are
considered conservative. As further
safeguard the bonds so accepted are
not TO he received for more than as
per cent of their par value.
The LII has from to 10 sections.
including one making the Secretary
of the Treasury. the Comptroller and
the Treasurer n commission TO pass
upon the character of the securities
to be offered for circulation. While
this Is the only mention of advisers
in the bill. there was some discussion
between Mr.. Aldrich and his col
leagues of proposition to make the
various subtreasurers advisers to the
Secretary In passing OH securities and
determining what banks he permitted
TO increase their circulation.
the provision making State, NUM-
cirai. county and railway bonds nc.
ceptable as security for circulation
Will. If enacted into law, sanction n
roiicy which has grown up under the
last two administrations in the Treas.
ury. Secretary Shaw began that poli
cy, and II was attacked in Congress
as unlawful. Is
The Aldrich bill is expected by Re
publican leaders to improve the f.
La cial situation. to enable banks to
get Increased circulation to increase
the value of bonds within their scope
OF activity and enlarge Their market.
Republicans claim the bill will not
weaken the stability of the currency.
1t Is understood to be the intention to
refer the measure to the Banking and
Currency Committee of the House
when 1t reaches that body. also not
to shut off debate By a rule. Senator
Aldrich assumes responsibility for
getting the bill through the Senate at
an early date.