New-York tribune., 1908-05-12
AGREE ON CURRENCY
HOUSE CONFERENCE ACTS,
Bill Prepared by Treeland Commit
tee adopted, 129 to IS.
From The Tribune Bureau.

| From The Tribune Bureau.J
| Washington, May 1.-THE difficult task Of
| drafting a currency bill satisfactory a major
| ty of Republicans in the House has been ac-
| complished by the special currency committee,
and the conference tonight adopted measure
| which will be passed under a rule within a
| week. The vote on the new measure was
| 12S to 16, which insures a safe majority for
| the bill in the House. twenty-five amendments
| being proposed in the conference but aside from
| three. which made the language more exact, no
| others were adopted Bearing in mind the reso-
| luton recently adopted by the conference, the
! committee held to the underlying principle of
| the former Vreeland bill. making the recognition
of commercial pa per a basis for the circulation
| of emergency currency.
The adoption of the new bill was accom-
| plished with a minimum of friction the only
| opposition coming from those who do not wish
| the government to give the guarantee provided
| for. Among these We're Representatives Hayes
| and Prince, who left the conference.
The measure differs in several particulars
| from the first Vreeland bill. but each change
met with general approval The most i'm
portant changes that there shall not be
more than one Clearing House Association in
| each city. but that the several members of such
associations shall be taken as nearly as con-
venient. from a territory composed of a state
part of state contiguous parts of
or more states.
Another change makes II impossible to exclude
any bank legally qualified from a clearing house
association. while each bank in such associa-
ton is held Jointly and severally responsible 70
the aggregate amount of its capital and surplus.
The new reserve feature makes IT necessary
for each bank TO have on hand at all times in
gold or lawful money at least 25 per of
additional circulation. 1t limits the amount of
emergency circulation TO s500000,000, and al
lows each bank to take out emergency currency
to the amount Of its capital and unimpared
surplus
The conference placed in the hands of the
Republican members of the Committee Rules
the determination of the procedure by which the
will of the majority shall be carried into effect
in the House. A resolution to request the Bank
ing and Currency Committee to bring in
port on the Aldrich bill. in order to give the
House preliminary basis for the substitution
of the conference committee BILL defeated
The conference met at o'clock. Representa-
tive Sherman. of New York, presided. Repre-
sentative Vreeland. of New York, chairman of
the conference currency committee, presented
the bill which the committee had perfected late
in the afternoon.
SYNOPSIS OF THE BILL
The chief points of the bill set forth in
the following synopsis and statement made by
Mr. Vreeland before the conference met:
Following the instructions OF the conference.
the committee used the previously introduced
VreeIand bill as a working basis for the
act Section of that bill provides that banks,
not less than ten in number. with an aggregate
capital and surplus of at least s5.o0o0OO. may
clearing house associations: that If the needs
of the country for the currency are so pressing
that in the opinion of the Secretary OF the
Treasury an additional issue of banknote clrcu-
lation is necessary the banks belonging to a
clearing house association may deposit secur1-
ties including commercial paper, In quality and
amount acceptable to the association. The
sociation may thereupon appeal to the Secre-
tary of the Treasury and he may issue an
amount of additional currency not to exceed rs
per cent of the securities so deposited The
changes made in that section in constructing
the conference bill that the clearing house
dissertations must be formed in contiguous ter
ritory, that not more than one shall exist in any
one city and that no bank can belong to two
associations.
that the capital and surplus OF each bank be
longing to association shall be Jointly and
severally liable to the government for any de-
fciencv In the amount necessary TO pay the
circulating notes after the sale of securities 80
deposited in case the notes not redeemed
A further change is that a national bank
nod have only 40 per cent of its capital in
bond secured circulation instead of 80 per cent
as condition precedent to taking out additional
circulation through association. An addi-
tionaI provision was added that banks must
keep reserve in gold or lawful money against
such additional circulating notes, is
provided by law against deposits
The committee reduced from $3.50, 900 900 TO
s5on 600 900 the limit of additional circulation
which may be taken out for emergency uses.
Discussing the construction Of the confer
ence bill, Mr.. Vreeland said:
Seyentv-fve members of the House replied to
the questions submitted by the committee in a
letter of inquiry sent last week. To the ques-
ton, would you favor $3.50. 100000 the au-
Ihorized limit OF emergency circulation" about
$500 900 900. To the question. Would you
favor the requirement that banks obtaining
in a clearing house association |
should be located in contiguous territory" the |
answers were practically unanimously in the |
affirmative and they also favored the proposal |
At least four-f1fths Of the answers favored COM
DuIs0ry ioint and individual liability of consttu-
ent banks for all notes issued by constituent |
of association.
VREELAND CRITICISES FOWLER.
Commenting on the action Of Chairman Fow- |
Ter of the Banking and Currency Committee |
who Is the leader Of the Republican "insur- |
gents on the currency question in sending q |
copy of his own most recent currency bill and |
a letter in relation thereto and TO the new Vree-
land bill 10 six thousand bankers throughout |
the country. Mr.. Vreeland said:
Many members of the Ranking and Currency |
Committee are not pleased with the action OF |
Continued second page