The morning journal-courier. (New Haven, Conn.) 1907-1913, 1908-05-16
Saturday. May 10. zoos.
EMERGENCY CURRENCY.

"A step in the right direction, |
seems to be the general verdict upon
the passage Of the Vreeland bill by
the house Thursday providing for an
emergency currency. Probably the
republican delight is the greater in
view of the fact that 1t was generally
supposed the bill would not come up
this session or, II It did come up, that
the democrats, voting solidly against
Il and augmented by the insurgent re-
publicans. said to number thirty-slx,
with Representative Fowler, chair
man OF the committee on banking
and currency at their head. would be
able to defeat 1t easily. But the bill
was rushed through in remarkable
style The dramatic incident when,
at the critical moment, the official
copy Of the bill could not be found
and Mr.. Vreeland had to hustle over
to the printers and have new copies
struck off from his original. but
heightened the effect. When 1t came
to a vote, instead OF thirty-six repub-
lican insurgents voting against the
bill, there were only sixteen, and the
result was that It was easily put
through, twenty-nine contrary repub-
leans being necessary to defeat it
1t should be borne in mind at all
times that the Vreeand bill is essen
TALLY an emergency provision and, as
such. 1t would be capable of accom-
plishing more in q passive or negative
way than in an active or positive way.
That Is to say It's very existence upon
the statute books, even though 1t Is
not resorted to, would reassure the
whole country and keep public conf
dence above par. The country would
realize that the emergency currency
II provides for would be available at
any time; 1t would not think the
boarding of money necessary and
would act accordingly. Such condi-
lions would make unnecessary the Is
sue of the very emergency notes that
the bill provides for The Very knowl-
edge that there Is a remedy for muir
der, namely law providing for capt.
al punishment, keeps men from com
hitting It. In this case the very
knowledge that there Is a remedy for
D. money panic, namely an expansive
emergency currency, would keep men
from Catching the panic" In this
sense, then, the Vreeland bill pro-
vides for no sort of money imitation
since 1t makes impossible that which
It provides for. Certainly 1t can dc
no harm when 1t remains inactively
upon the statute books.
AS for the provisions of the bill
they are very simple. Under theil
terms any clearing house association
that has more than ten nationa
banks among its members may Issue
emergency currency upon the basis o
any security held by the banks, includ
ing commercial paper The tota
amount Of this emergency currenc,
that may be issued is limited to $500,
900 900. 1t Is made necessary that tn
directors of at least ten national bank
must agree that the circumstances a
any given time warrant such action
since each of the banks concerned be
comes liable to a certain extent
whether the notes were issued on 1t
account or not The rate of taxation
proposed for this currency will be s
high that there need he little fea
that advantage would be taken Of tn
law to get imitation. The bill proviao
FOR taxation at the rate Of per cen
per annum for the first month and fn
an increase Of / per cent for eac
succeeding month thereafter up to te
per cent.
The Vreeland bill will now go to tn
senate. 1t Is said that Senator Ale
rich will there Immediately call
meeting of the finance committee
consider It. Whether this commttc
will vote to amend it by substitutin
the provisions Of the Aldrich currenC
bill is a matter of conjecture. TT
effect of such a course would be thu
the amended bill would be passed
the senate and then the two measure
would go to conference. The Ne
York Herald hopes that this Will n
be the outcome 1t says THE hou
OF representatives had done wei
now. let the senate do Its duty v
hope that the senators who oppose
the Aldrich bill will join with Il
advocates Of an emergency curren