New-York tribune., 1908-05-05
CTRRENCY LEGISLATIOA.

Three or four new amendments to the Nree-
land currency bill are announced, ana IL Is
expected that several more will result froih
the Republican conference. Apparently IL VIII
be altered 10 suit any group of members VINO
will promise their votes for it in consideration
of such amendments. That may be the way
to get the bill through the House, but 1t Is not
the way TO reform the currency. The process
makes If look as if the House leaders cared
not what sort of measure they finally paSsed
provided only that something gets through, pc
cause they do not expect the Dill WHICH VIII
finally come out of the joint conference coih
mittees to bear the slightest resemblance 10
the bill passed by the House. The apparent
intention is to put some proposition through, ~
that the Senate and House can come tosethel
and agree on measure acceptable TO both
branches.
That is at present the real danger to cur
rencv reform. The Senate has already voted
for q bond secured currency, and 1t is expected
that whatever form the Nreeland bill hnaily
assumes in the House the Senate VIII pracu-
caly substitute the Aldrich BILL linen, When 1t
comes to a conference, with the Senate CONFER
rees standing firmly for bond secured cur
rency and the House conferrees 1ndinerent hs
70 what kind of currency is provided ior' TIC
Aldrich bill will finally get upon the statute
hooks. If that is the result of the present Ell
of currency legislation to stand before the
country Oh they will probably have cause 10
regret il for they will have TO apologize all
through the campaign for providing something
which hardly anybody wants and almost every
body distrusts.
As for the Vreeland bill itself. the best that
may he said in its behalf is that while there Is
no evidence of any demand for it. there is also
no evidence of any strong hostility NO banh-
massage but il has not encountered such gen
GRO, ond outsnoken opposition as has the Al
drich bill 1t cannot be said to he III the III
terests of Wall Street or of any group of hond
sneculators nor can it be said to be distinctly
,nfriendIv 70 any section or to any CLASS Oh
hanks. unless it turns out that the 'iearins
House provision is ,unworkable TOT pahhs III III
small communities Unless the Aldrlch OH
should be grated upon it in the end, lt pronaDis
| would not prove TO be dangerous measure III
campaign. z,.,
leaving ont of consideration the cruultleS
in which il ahounds and which its author rec
| oonizes-fo- he had hardly introduced the bill
| hnfore ba began offering amendments-it pro-
vidas no satisfactory measure of currency re-
| form To go to its fundamental faults, 1t fol
! lows no tried system for the issue of bank CIT
/ cuIatfon Two methods have been used III
! other countries with success, and the Nreeand
{ hill instead of accepting one OF these INTRO
! duces a new and untried plan. One method IS
/ IN LET tha individual banks of the country take
ont circulation based upon their general assets
The other way is TO have central natlonal
hank to rediscollnt the choice commercial paper
! of the individual banks. the central bank issu-
| ing IFS notes based on its general assets COM
J nosed of this rediscounted commercial paper
| The yreeland bill follows neither Of these
nIans h11t Drovides for clearing houses TO seq
| oregste' the assets underlying note issues NO
| one knows how this would work, and no one
! can see why in so delicate matter as the cur
rpncv the lessons of experience should not be
| followed Other nations have found 1t neces-
/ arv moreover to provide machinery for the
! redemption of bank circulation The Nreeiand
hill here again neglects TO profit by the expert
| ence of other countries and leaves redemption
70 the United States Treasury, system which
| Is working badly with the present national
/ bank notes.
It is confessedly an emergency measure
| of a temporary character, and If II is passed
| the country will not long be satisfied with It.
| If will not give TO the United States such an
elastic currency system as foreign nations
| have. and the business interests of the United
States will not be content until they are as well
| proyided for as are rival interests abroad
| Whether the Vreeland bill passes or not, there
should be provision for the creation of
tboroughIv representative currency commission
NOT one that would be obviously controlled by
| Congressional leaders against real currency re
| form but one which the country would accept
as promising broadminded solution of the
problem.