New-York tribune., 1908-05-08
THE CrRRENCY CONFERENCE.

II is reasonable to expect that the committee
anpofnted by the conference Of Republican Con
cressmen upon currency legislation will prepare
a better bill than the Nreeland bill. while al
herring generally to the lines of that measure:
for the conference did not vote approval or tue
NrpeIand bill. as was at first proposed anu
moreover members are not bound by the action
of the conference If those who hold views On
the currency which are. see the question.
essentially sound do not like the bill which the
committee prepares they will be at liberty TO
vote against it. and as their votes Will be
needed for the passage of any measure II Is
likely that the bill will be drafted in the light
Of their criticisms Of the Nreeland proposition
While such believers in currency reform VIII
hardly accept any measure prepared III conform
ity with the conference resolution final So
luton of the problem. il is possible under that
resolution TO draft hill which will meet most
of the serious objections raised against The
Vreeland bill and which Will be acceptable as
temporary expedient guarding against emer-
gencfcs. especially if II is accompanied by the
appOintnlent of a representative currency com
mission giving promise Of a courageous and
broad minded consideration of the whole prob
lem. One grave defect of the Nreeland blll
which we hope will he remedied in the meas
ure soon 10 be offered is the lack of proper
provisions for the redemption of the proposed
circulation Representative Burton. who is "A
member of the conference committee and who
will doubtless have considerable influence IN
shaping its work. as said that redemption pro
visions are indispensable in currency legislation
His nresence on the committee and the fact that
the bill Will need the votes of men who believe,
as he does. that provisions for retiring emer-
gpncy' notes once they are out, are fully as ill-
portant as provisions for getting them out. NAV
he accepted as a guarantee that this defect Of
10
not difficult for the clearing houses which take
charge Of the issue of the new notes may also
assume the responsibility for their redemptlr".
Another defect that should be renedied is the
lack of any requirement for IL reserve to lie
maintained by banks against their notes. The
experience of bankers in other countries which
have An elastic. currency and the judgment 'f
experts the world over dictate the requirement
of such a reserve. The reason for it is obvious.
\ banks tote is Il claim against bank just rs
much as a depoStor's account is. 1t IS liable 10
he presented for payment, and. with proper re
dcmpton facilities, soon VIII be presented for
payment and the same principle that comprs
Il bank TO have on hand certain per cent il
cash to pay its depOsitors requires il 10 keep
reserve against its outstanding notes. The issue
of circulation without redemption facilities and
without a money against it tends toward
imitation.
The recognition 10y the conference that com
mercial paper is safe and proper basis for the
issue Of banknotes is great stride forward
toward the sort OF currency reform for which
the business Of the country eagerly looks. Ii
nothing more is accomplished the years dis
cusSion and agitation will not have been
wasted. Such degree of education has been
ACCOMPLISHED that future discussions will start
from that proposition a basis. The ros-
pects Oi legislation at this session some
what unpromising, for the Senate is committed
10 one proposition and the House Ia another,
and il seems unlikely in the face of the result
0s the conference that the Aldrich bill in any
degree of diution can be put through the lower
branch But as We have said before, we believe
the country cares little whether any "emer-
gcn.y' bin is enacted not. If Congress
passcs now Il satisfactory currency commission
bill. that will he generally accepted by the
business interests Of the nation giving prom
ise Of satisfactory solution of this question.