Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1909-10-05
From Washington.
I Correspondencs Of the Alexsndris Gazette
Washington. Oct. 8.

worked out in all Of its minor details it
is now possible to give the outline of
the proposed Central Bank OF the United
States, the, establishment Of which will
be recommended by the monetary COM
mission to Congress. 1t is to be essen.
TALLY bankers bank, or agency, to do
business with and for the other banks.
1t is not to receive deposits from the
public nor TO do any general banking
business. It's main function will be to
act as the fiscal agent OF the govern
ment and. through its large note issuing
capacity, limited beyond a certain point
by taxation, to come to the aid Of other
banks In times of emergency. Organ
izlng with capital Of, say, slC0, 00O,.
900, the stock is to be apportioned to
the several national banks, and perhaps
to the state banks also, on the basis Of
their capital, with provision makiog 1t
impossible for any individual bank to &C.
quire voting rights in excess Of Its quota.
rOese stockholders are to elect board
of directors by territorial districts. In
this way every section Of the country
would have q representative OF its OVID
choosing on the bosrd. There 10 also to
be another board, composed Of govern
meut directors, of which the leading
officials of the treasury are to be the
members, designsted by the president,
the secretary of the treasury and the
comptroller of the currency. This sf-
fords the joint private and government
control which has proved 60 successful
Ia the Bank of France and the Bank of
Germany. The active officers of the
bank are to be selected for life, or good
behavior, by joint action of these two
boards. This is designed to eliminate
politics and is an additional safeguard to
prevent any syndicate or clique from
obtaining undue control. The two boards
sre to cooperate in tbs manage.
ment of the bank, jointly deciding
questions of policy, etc. All gov
etument moneys are to 90 into
this bank and it lie to make government
disbursements. 1t Is to have branches
in each city where there is now a sub
treasury, replacing them, and in such
other cities as necessary to give adequate
service to all parts of the country. The
Central Bank is to issue It's own notes
which, IS the present United States
bond-secured national bank circulation
is retired, are to gradually supplant
them. Oenlrsl's notes are TO be secured
by a large gold reserve and By gilt
edged commercial credit or paper rep
resenting an sexual transaction In
business between solvent concerns.
This will ensure elasticity because the
notes to be issued by the bank in times
of stsingency would automatically con-
tract and be retired from circulation
when the transaction creating the credit
had been completed and the credit paid
No loans are to be made, or discounts
accepted, on bonds or stocks, real estate
mortgages, or any speculative security.
Tue operations OF the bank are to be
confined strictly to the commercial field,
handling paper based on staple commod-
tiles on their way to market; good, live
bills receivable as collateral, or re-dis.
counts endorsed by the stockholder bank.
Officers of the army signal corps are
busy today preparing for the coming of
Wilbur Wright who will begin his task
Of schooling the younger officers tomor-
row or Thursday in the art OF of flying.
The army aerOplsne will be moved to
the aerodrOme at College Park, Nd,
iust outside of Washington, which has
been cleared aud made ready for the
practice flights. LieulensntS Lshm,
Dickinson and Humphreys with several
enlisted men of the corps will remain at
the serodrome until they have qualified
as aeroplsne pilots. The flights will be
open to the public bat no time hiss been
desigusted by the War Department as It
will depend entirely upon the condition
Of the weather and the inclination of
Wright and the student officers.
A large amount of vaccine virus be-
longing to a Philadelphia firm was de-
stroyed about year ago by the surgeon
general of the public health and marine
hospital service because 1t was infected
with the foot and mouth disease. Now
the firm comes forward with q demand
for $l4, 696 in payment for the destroyed
virus. The comptroller of the treasury,
who wss appealed to by Surgeon Gen
ersl Wymsn, says that there is "nothing
doing" in q decision rendered today.
BE Gays that the destruction was neces-
sary ia the interest Of the public health
and that there is no Law requiring pay
for virus destroyed under such condi-
tious. '1f 1t WAS not rightfully Or
dered condemned" he continued, "your
order to that effect was without force
and effect, and the action Of the COM
pany 10 destroying 1t was 3 voluntary
me and created no liability on the part
of the United States.
Word was received at the State De-
psrtment today of the death ct Pekin Of
Chang Ohih Tung, grand councillor of
the Chinese empire. Chang had been
suffering from cancer for some time, and
only yesterday sent his resignation to the
government. This was refused, but he
was granted an indefinite leave of SD.
sence, and decree was issued confer
ring upon him additional hopors. He
was controller of the HsnkoW -Sgschusn
railroad, and took a prominent part re.
Gently 10 the negotiations for the Chi
nese loan with foreign nations. Until
the State Department took hsud and
protested directly to the Chinese foreign
Office, Chang opposed the participation
of American interests 10 the loan.
Complaining that the rates on grain
from points 10 South Dakota, Minnesota