The Washington times., 1908-01-05
CURRENCY LAWS
WILL BE RUSHED
Members Return Convinced
Country Wants Legisla-
ton Immediately.
Cannon Prefers to Let the
Senate Frame and
Pass Bill.

The outlook for currency legislation,
which was bad when Congress ad-
iourncd for the holiday recess, is vastly
better. and is Improving hourly as the
trains bring in statesmen VINO have
been home visiting their constituents
and learning the foro5 . public demand
for relief.
The leaders of the majority in both
Houses have rsa ched the conclusion
that it is up to che Republican party
TO make good. ard to do it at once;
to pass some legislation, and legisla-
ton that will improve financial condi-
tions. The country, according TO the
declarations Of the badly worried Con-
sressmen who are arriving In town. viii
nave no patience with debating or with
iltbUstering. 1t wants legislation, and
il VIII bs hostile II that legislation does
not produce results
At the same time, the consensus Of
opinion is that the problem has been
somewhat simplified in the last month
Members from al parts Of the country
declare that their banks at home are
in shape TO restore normal business
conditions if only the situation in the
big Eastern centers we're eased.
Want Money Subject to Call.
The country banks nave money
enough. but don't dare let IL out TIL
they are assured that effective steps
have been taken TO remove the danger
that as soon as released the currency
viii flow OF to the Eastern financial
centers and refuse 10 return when
needed.
The most significant straw pointing
to legislation is the news that Speaker
Cannon is convinced Of the absolute
necessity for It, When the session
opened he took little interest in the de-
mand: didn't believe conditions really
necessitated It, and thought there was
not enough pressure to force Congress
TO agree or anything But after being
out West for the holidays he comes
back to assure close friends that there
must be a currency bill. and it must be
passed quickly.
Cannon Defers to Senate.
The Speaker is willing that the IegIs-
Iation should be shaped by the Senate
first. Indeed, he believes that II the
initiation OF the measure were left to
the House there would be small chance
Of passing anything. because the House
Banking and Currency Committee is
badly split and hopelessly unmanage-
able. The cool heads in the Senate
Finance Committee therefore are TO be
allowed, by general consent, to pre-
pare a Dill. bring 1t out. and pass Il
through he Senate; then the Speaker
IS confident, according 10 reports. that
he can force it through the House
Reports that any bill has been agreed
upon by the leaders exaggerate the
facts. The Senate committee managers
have Indicated that the bill likely to
meet their approval Will provide for
the issue of currency based on ap-
proved no1gOvernment securities-that
iss State, county, municipal, and rail-
road bOnds-and also high-grade com
Tcrcial paper, running not TO exceed
three months Small interior banks do
not own bonds. and could not get them
for currency purposes, so the necessity
for using commercial paper arises
This currency viii be heavily taxed
70 per cent being suggested as a proper
figure. This repT esents q tax OF 2
cents per day on each 500 issued.
There will not necessarily be any grad
uatiOn Of the tax, though this may be
added later.