The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-05-27
ACKNOWLEDGEMENTS

Washington, May 26-The senate and
house confeTees on the currency bills
held three meetings today, and at the
third. which did not adjourn until $50
o'clock. reached a tentative agreement.
on which will be based the compromise
which the Republicans of the conference
hope TO reach at an adjourned meeting
tomorrow forenoon. At the conclusion of
the final meeting tonight the probability
of the reporting OF compromise bill 10
the two houses OF congress was much
stronger than at any previous time this
session. Indeed, il was considered GER
tainty.
The Main Points.
Following are the main points of the
understanding that had been reached:
The reserve provisions in the Nreeland
. bill, calling for retention of . per cent
} in central reserve cities and 10 per cent
IN other reserve cities. is reduced TO
straight 10 per cent reserve without ref
erence TO classification of cities.
4 higher rating is given to state and
municipal bonds than TO other securities
upon which emergency currency may be
taken out by banks That is to say. cOun-
~, state and municipal bonds will be val
ued at not TO exceed 80 per cent of their
market value, and all other bonds at not
10 exceed 20 per cent OF their market
value. both without regard to whether
they are offered as security for add
tional circulation under the national
clearing house plan or under the indi-
Vdual bank bond security plan.
Limited to 20 Per Cent.
The amount Of circulation issuable up
on commercial paper basis is limited TO
a. per cent OF the capital of the appli
=. cant. instead OF 100 per cent, as provided
in the Nreeland bill.
The redemption fund requirement of D
per cent under the present law IS in
creased to 10 per cent for all emergency
currency taken out.
issuable Is confined within miXimum Of
$50 0o0,oOo as provided b ythe Aldrich
~. g. u,, =, tho. ,..... :. ,,...a
upon the life OF the bill.
Not Entirely Patched Up.
In this preliminary and purely tentative
Welding of the Aldrich and Vreeland bills
principal features Of each and making II
possible 10 obtain an emergency cur
rency under two distinct and radically
different forms of application and secur-
itN. several OF the minor details of fl
nancial machinery are not vet fully set
tied. They will be taken up for cOnsid-
Grafton and disposition when IL has be-
come a settled fact that a bill is 10 be
reported by the confeFees. Meantime the
working draft Of the compromise bill, az
outlined in the foregoing paragraphs, will
be printed tonight at the government
printing office. so that the Republican
conIerSes may nave the text DeIOft lnen
when they meet a $50 tomorrow morning
10 dctde upon the attitude they sill take
and maintain in the full conference TO
be held Immediately afterward and in
which the Democratic members of the
conference will for the first time par
ticipate.
The Party Lash.
If a bill is reported out of tfhe con-
ference tomorrow il will be passed by
the house tomorrow. Notices were sent
out tonight by order Of Speaker Can
non, for every Republican member TO be
in his seat at II O'Clock. when it is ex-
pected the compromise bill viii be re-
ported.
Intimates OF Speaker Cannon asserted
today that in the event that a bill along
the lines of the proposed compromise is
brought In. II could be passed by the
house after an hours debate. This re-
mark is interpreted 10 mean that the Re-
publican majority OF the house is pre-
pared 10 accept whatever the conferees
NAV recommend. but 1t is not believed
that the Democrats Of the house will be
denied the privilege OF some expression OF
their views.
Different in the Senate.
The conditions are so different in the
senate that another situation may be en-
cOuntered there. Still. tOdays develop
ments have been such as To Justify the
statement that the bills will not be held
up In the sente for so long a time as
seemed probable when the compromise
first began TO receive attention. Then the
fear was that the measure might be
talked TO death
Strenuous representations as To the Dos
sible effect on business OF a failure by
congress 10 enact financial legislation be
fore adjournment has had the effect Of
causing several Democratic senator's to
agree not TO discuss the bill at length in
Continued on Page 2.