Waterbury evening Democrat., 1908-01-01
SENATE FINANCE LAW
Emergency Issue of S100,0 ,000,-
 900 With Big Tax Predicted.
SPEAKER CANNON FAv0Rs IT
Most Difficult Feature Of Measure to Be Determined Is Scope of Securities Which Shall Be Taken as coIIsteral For Proposed Circulation.

Washington, Jan. 1.-Finapeial legis-
 lation is assuming tangible form in the ] minds of those members of the senate l committee on finance who are working
 to that end and they now hope to be able to lay the draft of measure be-
 fore the committee at one of it's first
 meetings after the holiday recess. It l Is even expected that the measure can l be reported to the senate in the third week in January While it is assumed
 that there will be considerable debate, l it is believed it can be sent over to the house without any undue delay. The chief feature of the bill will be the emergency currency already de- scribed in these dispatches. a national
 bank circulation secured by approved bonds heavily taxed and the total is sue to be limited to a given sum. It is the present intention of the leaders to submit to vote of the committee cer- tain features not so much to ascertain the views of the conmittee, which are already pretty well known. as to satis- fy the advocates of what may be termed collateral provisions
 The present indications are that the emergency currency will be made sub
 ject to q tax of per cent with view to insuring it's retirement as soon as the actual emergency has passed and that the total issue will be limited to $100.000 GOO.
 A question which is being seriously considered is the adyisability of in cooperating in the measure a provision that each of the eight subtreasurers of the United States shall act as adviser to the secretary of the treasury in de termining what banks shall be permit ted to avail themselves of the priyi- lege of issuing the emergency currency authorized. This idea was first embed jed in proposition to make the yari- ous clearing houses advisers of the secretary. but inasmuch as the clear ing houses are not recognized by law and have therefore no legal status the proposition has now been altered to make the subtreasurers the secretary's advisers. This feature involves the division of the United States into eight banking districts. in each of which the subtreasurer of the United States shall be the arbiter regarding 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 securities which shall be ac- cepted as collateral for the proposed circulation. The necessity of extend ing the scope beyond United States bonds is unanimously recognized. Nat urally the next step is to include state, county and municipal bonds under proper restrictions.
 A strong effort Is being made by cer- tain interests. however. to have the list of acceptable collateral include long line of industrial securities. The more conservative senators are oppos- ed to this. and the final solution of the problem may involve an earnest argu- ment. followed by vote of the com mittee. although 1t is generally admit ted that the influence of the interests which are seeking this end Is quite likely to result In limiting the accepted securities to the public bonds enumer- ated-state. county and municipal.
 Information from the house is to the effect that when the senate has adopt ed measure along the lines indicated ii will receive favorable consideration and reasonably prompt action in the lower chamber.