The Washington times., 1908-06-04
CURRENCY CHANGES
MAY BE RADICAL
Rep. ]. w. Weeks
Commissions Report Not
Expected Until Sixty
first Congress.
BILL AS ADOPTED
HAS GOOD FEATURES
Present Measure, 1t Is Thought,
Will Create Feeling of
Security.

Congress should not expect thor
ougflv comprehensive report from the
Finance Commission appointed under
the provisions of the AfdrIch-Vreeland
hin until the first session Of the Sixty
first Congress. according to an opinion
EXPRESSED today by Representative John
q Nv. NIeeks, of Massachusetts, member
{ of the commission.
Mr.. weeks Is a practical banker. being
vice president OF the First National
Rank. of Boston, is a member Of the
3 House Committee on Banking ana Cur
rency, and was one Of the conferees
which finally adopted the currency
measure. Mr.. Weeks says that person
ally he would like TO devote six months
+ to a study of the subject
Only a Thorough Examination Wanted
IT shall not be satisfied until We can
make a thoroughly scientific report to
. Congress- said Mr.. Weeks today. The
> authorization for the commission is
broad and suggests radical changes.
For instance. the commission will be
fully empowered TO consider the desir-
ability OF establishing a central bank
4 OF issue, similar to the central banks of
! foreign countries; the desirability Of es-
tabGshing branch banks, the desira bility
: Of changing the location Of reserves;
limiting or extending the character OF
loans which national banks may take,
and the Whoe question of rearTanging
our currency system.
II am personally very friendly TO the
. credit currency. To my mind II presents
d. most desirable policy, but abrupt
, changes in such a delicate subject as
4 currency are not desirable. That was
the most serious objection to the bill in
; troduced by Mr.. Fowler, chairman of
the House Committee on Banking and
Currency which, barring the provision
q for guaranteeing deposits and the radi-
cal character OF the changes proposed,
was an excellent bill.
4 can readily see how the result OF
the work of the commission might be
p of little use On the other hand, the
commission may. as a result of its in
Vestigations, suggest legislation which
. viii be of as much Importance TO the
business interests OF the country as
any that has been passed by Congress
IN a decade.
Has Great Confidence in Report.
II have great confidence in the sound
ness OF the conference report adopted
by Congress. If the bill ho been in
operation last fail, II would. in my
judgment, have prevented the breaking
down OF our exchange system. This
breaking down has been. more effective
in bringing about the present dull times
than any other factor.
The very fact that the Aldrich-Vree-
land bill is now on the statute books
viii create q feeling OF security, and
# the law is called into use within the
next six years I confidently predict that
It Will be found workable and useful. -
Mr.. Weeks was asked If he had any
comment to make on the criticisms Of
Senators La Toilette, Gore, and others
to the broad terms of the bill permit
ting ANY securities" being put up for
emergency currency. thereby letting in
railroad bonds.
Such criticisms OF that particular
feature of the bill" said Mr. Weeks,
ARE due to prejudice and lack Of knowi-
edge, rather than to sound business
reasons. In taking out clearing house
I certificates IN the past, banks have al
. ways hypothecated their best securities.
Such - step Is nothing more than or
dinary, sound business prudence. and
there is no reason why that Lolicy
should not be followed in future.
Many Differences of Opinion.
There is a radical difference OF opf,-
ion as to whether the Government rr
banks should Issue circulating notes. &"
+ continued Mr.. Weeks. ''Ti4~t IS natural.
but don't know OF any other country
in the world where the subject Oh a
6 national currency system Is considered
from partisan standpoint. The AL
I dTtoh-Vreeland bin would not have pre-
vented the panic last fall It would
/ have prevented the distress which fol-
5 lowed the panic No system in the
WoTl4 will prevent a collapse when TOD
much capital is tied up IN fixtures, or
when credit has been worked to the
breaking point. A good currency sys-
tenn VIII prevent the deplOrable results
I following every panic, but the consider
! alton OF such a system should be dis
+ cussed and perfected entirely from a
F non-parusan standpoint
ABSURD ALL AROUND.