New-York tribune., 1908-01-01
FINANCE Law. IN SIGHT
SENATE CURRENCY PLAN.
Emergency Issue of 500. 900, 900
s9'th z Per Cent Tar, Predicted.
IFrcm The rrrhun. Rur.au1

tFfom The Tribune Bursau.l
Washington. Dec. 31.-Ffnancial legislation is
assuming tGngiole :orm in the minds of those
members o: tie Senate Committee on Finance
"no are vorSing to that end. and they now hope
10 De able to lay the draft o. a measure before
The committee 1T one OF it's first meetings after
N1e holiday rc~cSS. It Is even expected that
Nhc measure can b. reported to the Senate
IN the third seek In January While it Is as
sunIed that there will lie considerable debate It
IL believed Il hc sent over to the House
without any undue delay.
Ihe chief fec turc of the bill will be the emcr-
gency currency already descriha1 in these dis
patches--a national hank circulation. secured
oy approved bonds. heavily taxed. and the total
Issue TO he limited TO a given sum It is the
present intention OF the leaders to submit to a
vote OF the committee certain features not so
much 20 ascertain the views of the committee.
which are already pretty we'll known. as to sat-
iSfy the advocates of what may be termed ccl-
lateral provisions
PROSPECTS ON LEGISLATION.
The present indications that the emer
Eency currency will be made subject to a tax
of q per cent. with a view insuring it's re-
tireInent soon as the actual emergency has
passed and that the total issue will be limited to
$1OOOO0On0.
a question which is being seriously consid-
cred is the advisa biity Of Incorporating in the
measure 4 provision that each OF the eight sub
9 treasurers of the United States shall act as
adviser to the Secretary of the Treasury In
determining what banks shall be permitted to
avail themselves Of the privilege of issuing the
emergency currency authorized. This idea was
first embodied in a proposition to make the
various clearing houses advisers of the Secre-
tary. but inasmuch as the clearing houses are
not recognized by law. and have therefore no
legal status. the proposition has now been
tary's advisers, This feature involves the
division Of the United States into eight bank
ing districts. in each Of which the Sub-Treasurer
OF the United States shall ne the arbiter re-
garding the issue of emergency currency by the
several banks within his district
The most difficult feature of the measure
yet 10 be determined is the scope of securi-
ties which shall be accepted as collateral for
the proposed circulation. The necessity of ex-
tending the scope beyond United States bonds
is unanimously recognized. Naturally the next
step Is 10 include state, county and municipal
bonds under proper restrictions
A strong effort is being made by certain
interests. however to have the list OF accent
able collateral include long line OF indus
trial securities. The more conservative Sen
stors are opposed to this. and the fnaI solu-
ton Of the problem may involve an earnest
argument, followed by vote Of the committee.
1iuence OF the interests which are seeking this
end is quite likely 10 result in limiting the ac-
oepted securities to the public bonds enumer-
ated. state, county and municipal.
There are in the Senate numerous advocates
OF FEDERAL guarantee OF deposits in national
banks-a sufficient sentiment, probably To in
sure q vote on the proposition In the Ffnance
Committee-Dut there Is no doubt that il such
q vote is had the proposition will be uneoutvo-
cally rejected 1t Is entirely possible tbst .b.
proposition to establish q central bank of is
sue also will be pressed by some members of
The committee, but should that be done IL will
be permitted to come to a vote and eunhat
ically voted down. That done the decks will
be clear for the serious consideration Of the
measure II is purposed to enact
HELP FROM SPEAKER CANNON.
Information from the House is to the effect
that when the Senate has adopted a measure
along the lines indicated it will receive <ayora bio
consideration and reasonably prompt action In
the lower chamber The subcommittee Of the
Committee on Banking and Currency is null
ing some form of financial legislation" to
quote Speaker Cannon, but that is an occupa =
ton which the Speaker regards as wholly in
nocUous and even somewhat profitable as +:
affords pleasant employment TO Chairman Fow-
Ter and his sympatfIizers on the committee.
That the result of this ''mulng" is certain to
be the old Fowler bill. perhaps In a new dress
is a foregone conclusion, and that no form of
the Fowler bill will receive the serious attention
Of the House is equally certain
When the Speaker finally appointed the CON-
mittees OF the House it will be remembered he
transferred two members OF Banking and Cur
rency and assigned two members to that
committee. Il is his belief that the COM
rnittee is now organized IL will prove amenabIe
to any suggestion from him that it report favor
ably such Senate action may meet with hIs
approval quite Irrespective OF the we'll known
procIivities OF IFS chairman But should the
Sneaker find himself mistaken in this belief he
Will not hesitate again 20 reorganize the COM
njttee so that no fear need be felt that the
House will fail TO take that action which is re-
garied by the Senate and the Speaker In the
interests Of the country at large.