Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-01-02
Finance Committee Will Frame
Currency Legislation.
DECISION OF THE LEADERS
Dissatisfied With the House Com
mittee.
MEASURE ALREADY PLANNED
Many Details Remain to Be Settled.
Senators Aldrich, Allison and
Hale in Charge Of Matter.

Hale in Charge Of Matter.
The House committee on banking and
currency-appointed by Speaker Cannon
soon after the convening of Congress for
the purpose of framing emergency finan-
cial legislation-has become unmanage-
able. and republican leaders at the Capt.
tol have determined that the financial re-
lief bili-pressing necessity for which is
admitted by both parties in the two
branches Of the national legislature-shall
originate in the Senate. The big three of
the Senate finance committee-Senators
Aldrich of Rhode Island, Allison of Iowa
and Hale of Maine-have been intrusted
with the task of preparing financial bill
designed to prevent recurrence of ma
tional money disturbances of the nature
of the recent stringency, and have al
ready made good progress, the general
plan having been mapped out, although
there yet remain many essential details
to be decided upon.
Additional Bank Currency.
Although none of the senators named
will discuss the pending bill for publica-
tion, 1t is understood that the general
plan in question provides for additional
banking currency of substantially the
same form as that now in circulation. and
backed by the guarantee OF the United
States government. One of the details
which has not yet been worked out is
with reference to the limitation to be
placed upon the amount issued by each
national bank-whether this limit shall be
up to the full extent of the banks capi-
tai or just what proportion of the capi-
tai. 1t seems pretty well settled, how
ever. that the relief bill will not be an
asset currency measure, and that 1t will
taken as a tentative legislative indorse-
ment of clearing house certificates.
To Restore Confidence.
In view of the many reports that have
been circulated concerning the attitude of
the leaders of both Senate and House
with reference to financial legislation, this
decision OF the republican leaders at both
ends of theN Capitol to have the necessary
bill originate at the Senate end with
view to early action by Congress
as a whole Is peculiarly interesting. The
republican leaders clearly recognize that
some thing must be done to restore conf
dence-inancial. as concerns the mass Of
the people, and political, as concerns the
mass of the voters.
This recognition Is by no means belated.
There have beeh no misapprehensions as
t6\the situation so far as the republican
leaAersl in Congress are concerned. But
SIdA H1coherenty as seems to have afhict-
ed ne situation, legislatively,, has been
due in great measure to a cautious CROP
ing foA the best meaps to attain the de-
stted>end. The early appointment of the
banking and currency committee of the
h House was purely objective. Speaker
Cannon had no delusions on the subject.
Chairman Eowler's personal views on
necessary changes in the national none
|, tary sysftem do not coincide with the views
.sf majority of members of the House
and there are, besides. several members
of his committee who hold rather radical
onnions. But. twas thought that pos
SHY the exigencies of the present situa-
tidh and the admittedly imperative need
lines might serve to produce a tempo
rarily serviceable If permanently question
able financial measure, which would in
foke the eficient If unenthusiastic support
Of a majority of both houses and be put
on Ats passage with minimum of friction
and aratorical disturbance.
SG4ate Committee Preferred.
This view appears to have been entirely
too optimistic. Up to date the House
banking and currency committee has
shown few symptoms of a desire to pre-
pare a relief measure along the lines
desired by the party conservatives at
words Of the plainest, got its feet, col
lectively and individually, over the traces,
and there is little hope that measure
prepared by its subcommittee and IA
vorably reported by the entire member-
ship would have even a fighting chance
of approval by both Houses Consequently
IL has been decided to have the bill orig
mate in the Senate finance committee and
be passed by the upper House, where the
organization
chieftains promises a comparatively speedy
perfection of the mea sure with as little
friction as possible. Opinions differ widely
as to just when action will be obtained
by the Senate ON the financial measure
now in preparation. The bill, it is un-
derstood will be introduced soon after
the reconvening of Congress, and will be
given almost immediate consideration But
IL Is. of course, impossible to foretell when
final approval will be giver and the meas
ure sent over to the House for considera-
tion.
To Provide Emergency Relief.
One of the three senators mentioned as
having charge of the preparation of the
bill said recently that the main idea fol-
lowed in framing the relief legislation
would be to provide for some emergency
relief in which the people as a whole
would have confidence and resort TO when
necessity arose. Whatever additional
banking currency is. provided for un-
doubteoly will be in such volume as effec-
lively to meet conditions similar to those
which have recently prevailed. 1t is
thought. moreover. that provision will also
be made for the creation of fund, to be
raised by the imposition OF small tax
either upon government deposits in ma
tional banks, or upon existing circula-
ton, which will guarantee the United
States against loss. Ii is also considered
inevitable that another provision will be
made for the retirement of this additional
circulation at the passing of the emergency
which called II forth-and this provision
may be along the lines OF the recommen-
dation of Secretary Cortelyou in his most
recent annual report, in which he sug-
gests that Congress vest the Secretary
with discretionary powers in this matter
OF excess circulation retirement
Commercial Paper Not a Basis.
1t is considered rather improbable, by
those in a position to know, that the
financial bill in preparation will au-
thorize the acceptance of even the
most gilt-edged commercial paper and
real estate mortgages security foI
national bank circulation. as this would
be an innovation of the most radical
sort. and would defeat the very prop
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