Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-04-14
House Republicans Will Hold a
Caucus.
TO TAKE UP A NEW BILL
Measure introduced by Representa-.
tive Vreeland.
FEATURES THAT ARE FAVORED
Issues Based Upon Municipal Bonds
Clearing House Associations.

When the caucus of House republicans
* held next week Ia decide upon cur
renCv legislation II will consider bill
which was introduced in the House yes
torday by Representative Nreeland of
New York 1t was drafted by repubica n
leaders and embodies much of the AL
drich bill as they feel confident of and in
which is incorporated the amendments
agreed on As ii is now generally recog
niZeC that sentiment in the House in
favor of such a radical reform I'm he ma
tioual money system a change from a
bcnci-Secured to an asset currency is not
strong enough to uphold tho Fowler bill,
the question in the caucus will he simply
whether there shall he an amended Al
drich bill or no financial bill al all
If by tho time the caucus meets the
Senate has not enacted the promise of
senator 4ldrCh TO pass a CiIrrency-com-
mission bill such a measure will be
agreed on by the caucus and passed 10y
The House 1t is believed that il will go
through the Senate.
Issue of Currency.
In the hill introduced by Mr.. Vreelan nd
the Ndrich bill far as il appertans to
the issuing OF currency on municipal
bonds is left unchanged The section of
the Aldrich hill which changes the pres
eut Law of reserves is stricken out entire
~ This Is the section which has met
with the NEST objection from the banks.
boih in the country and the reserve cites.
The last clause of the Aldrich bill. com
monty called the Id Toilette amendment.
is stricken ont. These sections were
eliminated OIL the theory that neither ono
WAS necessary 10 purely emergency bill
on the argument that the bill should be
III.
Of providing simply for an emergency
currency: that ii not desirable at
this time tn go into 4. revision OF the
ranking and currency law, but that work
should he and would he taken up by A
comm SSion to he created before Con
crcss adiournS.
Handling Bank Assets.
In the Vreeland bill a section is added
tn the Aldrich bill to meet the objection
ut western and southern banks that they
own no bonds such as required for
security under the Aldrich bill. that they
don't feel able to divert their money to
tie purchase of such bonds. and that
Ali at their funds are required in the
needs of their business. The new section
cseatas an agency for the handling OF
ordinary assets Of banks. Including com
Inercidl paper. Under this section groups
nf national hanks not less than ten in
number and having an aggregate capita.
and surplus of at least S1o.H0.tDN may
form voluntary aSSoCia tions to he known
al national clearing house associations.
such an association shall have offices and
= board OF directors selected from the
representatives Of the banks composing
the groups. and shall be organized ana
governed according to rules TO be pre-
sCrihed- by the Secretary of the Treasury.
Any bank belonging to such an associa
ton may deposit and assign to the dsso-
ri
ing commercial paper may be satisfac-
tory to the officials of the association. The
association may thereupon make appliCa-
ton 10 the controller of the currency
in behalf OF the depositnG bank for au-
thority TO Issue additional bank notes 10
an amount not exceeding o., per cent of
tho cost value of the securities SO de-
posted.
Redemption of Notes.
The association is made corporation
for the purposes of the act only Upon
failure of any hank To retire its Circu-
lating notes the association can sell at
public sale the securities deposited. Ii
there should he deficiency after the sale
that deficiency is made "A. first lien upon
the assets of the bank issuing the notes.
If there should still be a deficiency the
assets of all the banks belonging to the
q association are made liable in the pay
nent Of the notes. All of the other pro-
visions of the Aldrich bill are made ap-
rlicsble far as they apply to this sec
ton
The methods Of existing clearing house
.Issociat o'is arc used as far possible
~ framing the provisions of the Vreeland
bill Ii has not been thought best to dis
a BILE existing clearing house associations
nor to exercise government control over
them. If This PROV sion for the creation
Of emergency clearinghouse associst lions
had been in force last October. said Mr..
Nreeland today. AN association could
have Eeen formed in New York in twenty
four hours to which S16l 9h,.0D Coulo
have been Immediately issued by the SEC
rotary Of the Treasury. ard eaua lly
speedy act'o could have been taken IN
ether cities similarly.