Albuquerque morning journal., 1908-01-20
CURRENCY ACT
DRAFTED BY
BANKERS
Commission DeRouoces AL
Jdcb Measure as a Step
Backward, and Tending To-
ward Wildcat Money

nv Morainr Journal Special Leased Wirel
chicago. Jan ~ Tie resolutions
committee of The currency commia-
sim Of the American Bankers. asso-
station, tonight issued a fun report OF
Yesterdays meeting of the committee
The various asset currency plans now
before congress were discussed and re-
iectcd The report sumbmarilcs the
committee objections 10 the Aldrich
bill aud the present Fowler bill and
then prescnts a hill in thirteen see
tlons which the committee With the
backing VI the association VIII rec
ommend 70 congress
The Aldrich bin g declared te be-,
rimprueticable" and financially un-
sound" rbc Fowler bill according
10 the report Introduces schemes 50
far reaching Ia thcr scope and touch
ing so many collateral Interests moi
germane 20 the real solution Of our
currency difficulties, that We believe
ils passage would unsettle, rather than
improve financial conditions SiS
principal objections are urged against
the Aldrich bill
The FIRST asserts that the measure
would overthrow safe system Or
note issues which has been enjoyed
since the foundation Of the United
states system" ana the proposed Law
f. called step backward 10 the con.
dltlons which gave rise TO the wildcat
currency before the civil Wal
'It may be the entering wedge TO
the acceptance Of undesirable bonds
commission There are recent exam
pies tn the laWs of NeW York state
legallzing such bonds for saving
bnnks
In The SECOND place q II urged that
the bill would cripple the lending
power of banks Ia that Il would take
from the bank reserves Stoo,00n In
lawful money IN order that notes fer
10000 might be issued 'lf the
bonds behind these notes wore hor
rowed instead Of purchased i would
have the effect Of increasing ule liu-
bilites of Tie banks adds the report
which is wrong iu principle
IN the thlfd placc it is said thut tho
biz would tend 10 create hcuitous
bond market and thus load nu-
inequalities 10 enlarge their ublga
tions
The fourth objection Is that mc
technical requirements which the hil
provides must bc observed before
notes can be- issued would entail such
delays as 10 make the notes available
only after the emergency had pussad
The nfh objection has 10 do With
the taxing provisions of Tire Aldrlch
bin Those sections 10 declared
would result "a thc banks suffering %
net loss ~ per cent on the notes Doe
sued. whether thry were taken out
against purchased 0r borrowed bonds
The sixth objection asserts thHt the
cost of Hkng out the notes would bc
paid ultimately % tuc needy bor
ruNpfa who would be buduucd by Inc
creased rates charged ul "a Time OF
Year, usuully Ia autumn when he can
lu anord them After some general
criticism of The Fowler bin the com
mission sums ar the situation us lol.
low
Let us n0t bee unmindful ot the
furt tnal n response " tAc demands
81 thc people. unsound and radical leg,
islatiou has had its prccrdents ia our
monetary history Aflcr The panic OF
1878 congress passed q hll increasing
erecnbaok By Sti,opuooo. a protect
which was wisely vetoed hy President
Grant AFTER the panic at 1898 eun-
grrs- approved q measure providing
ror the coinage Of ta5,oOn.Uoo n slI-
Nur Whlgh WAS vetoed hy President
tgp,pIaud IN These tWu Instances Np