Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1908-01-09
EHE ALDRICH BID.
ne Financial Measure Likely 70
Receive Committee IndOrsement
Introduced IN Senate.
AN EMERGENCY CURRENCY
An Issue, subject to Tax Of 9 Per Gent,
Not to Exceed $25o,0oo,O0O, May
Be Based on Other Than
Government Bonds.

b 4 ! .
Washington, Jan. 8.--The financial
bill which has for some time been In
preparation by leading republican
members Of the senate committee on
finance, was Tuesday printed and civ.
en- to the public.
The bill provides for an additional
issue OF bank circulation which shall
at no time exceed s250,0OO,0OO on
bonds other than those issued by the
government, including state and mu'
nicipal bonds in approved cases. The
comptroller Of the currency is given
discretion in the Issuance OF the pro
posed currency and is authorized to
decide as to the time and amount to
be awarded to any banking institution.
1t Is provided that the increased cir
culation shall in no case exceed IS
per cent OF the value Of the bonds
deposited.
The measure provides for an emef'
gency currency issue, subject to a
tax Of 6 per cent. The object Of this
tax Is to retire the emergency cur
rency whenever It has served the pur.
pose for which II was Issued The tax
Is placed purposely high so the cur
rency proposed will be purely an
emergency one, and not be used for
permanent imitation of the circulating
medium. With view to making GER
tain that the volume of currency in
the country will not be unduly per-
manently inflated, limit Of $250,00O- |
900 Is placed on the amount which |
can be outstanding at any one time.
With a view to expanding the retire
ment Of the circulation whenever its |
purpose has been served, there is pro-
vision increasing the amount that can |
be retired over and above the present |
limits Of the Aldrich act, which pro
vides that not in excess Of $4,000, 900
can be retired in any one month. This
Increase applies to the emergency cur
rency.
OF far-sweeping Importance and rev.
olutionary In character is the proposal
Of the bill that state, county, munich
pal and railroad bonds shall be &C.
cepted as security for the circulation.
The railroad bonds will only be &C.
cepted where they are first mortgage
securities. In making this provision
for accepting outside securities, the
national congress follows the savings
banks laws Of Massachusetts, and New
York, which have long been con-
Iidered the most conservative Of their
kind in the country. 1t is also pro-
posed a. further safeguard to the
national credit to assure the absolute
security Of the proposed emergency
currency, that the bonds SO accepted
BhaIl not be received for more than
rs per cent Of their par value.
The passage Of the bilf Is expected
10 materially improve the present sit
nation, not only In that 1t will give
assurance to the banks Of the country
hat they can get plenty of circulat-
nc medium whenever necessary, but
/ will Increase the value Of the bonds
d the character mentioned as &C
,eptabie as basis for circulation.
4 IL admitted that such use Of the
,onds not only eases up the banks
ind widens the scope OF their sphere
4 possible activity, but also widens
he market for these bonds and gives
hem stability and value, which they
AVE not possessed up to this time.
me opinion Of many who have studied
he question Is that the bill in no way
veakens the stability Of the circulat.
ng medium Of the country.