The Birmingham age-herald., 1909-12-24
MACVEAGH'S PLAN ID RAISE MONEY Secretary Proposes Graduated 1axen Bank Circulation QUESTION IS DISCUSSED Banking and Currency Commission Is Studying MscVeagh's Plan That
 May Be Used To Raise
 Canal Funds.
QUESTION IS DISCUSSED

Washington, December 23-Preliminary action in looking to the consideration of Secretary MaeYeaghs recommendation for graduated tax OH national bank circulation, secured by deposits of Unit ed States bonds. has been taken by the banking and currency commission
 Chairman Vreeland has requested and Secretary MacVeagh has prepared the amendments necessary in the enactment of the legislation in the event that the committee decides to act favorably on the recommendation. Thsse contemplate making the per cent bonds. authorized by the Payne tariff law for the expenses of the canal construction. payable in gold coin, and giving authorization for the appropriation incident to the issue of any bonds
 It was in consideration or these amend ments, together with n general discus- sion of the question of the issue of the Panama bonds that consumed the time ] of the conference at the White House , yesterday between President Taft Sec retary MacVeagh and Senator Aldrich
 Nothing final was determined upon, it - matter of any issue of new interest bear ing obligations of the government. There ] was desire 10 talk over the financial sltuation-not however it was explained as affected by the business conditions of the eountry-and to determine just where the treasury stood at this time.
 With the closing of the Year the work ing balance has been decreasing cons siderably. although today's statement shows a material improvement over yes- terdsy. receipts of all kinds amounting to s2,529,9os swelling 1t to s24. .ss5.S1s.
 Secretary MacVeagh. however does not view with any serious concern the losses in the balance which have occurred re- gently and Is not disposed to issue in- terest-bearing obligations unless it reaches a very low point.
 Secretary MacVeagh has at his corl- mand the privilege of issuing the Panama canal bonds should he feel disposed to do so, and also to put out per cent interest-bearing certificates to meet pressing obligations of the government. It is not considered likely that he will take the former course before Congress acts on his recommendation for grad udleu ldA DH Ddih ClFCOl2 liOu. He IS averse to doing so. under present con- ditions, for. as he pointed out in his annual report. the bonds, if issued at 8 per cent, would have much better cir culation privilege than the outstanding per cent. the tax being only 1 per cent, their issue, therefore, constituting & dis elimination against the 2s that the gov ernment could not justly contemplate. Concerning the certificates an issue is considered unlikely unless the imperR- tive necessity therefor arrives.
 The Payne law prescribed that the Panama canal bonds hereafter to be is- sued under it's provisions should bear interest not exceeding ger cent. This leaves some leeway in determining the character of new issues, the Secrtary of the Treasury having power to sell 21s per cents, a proposition which 1t is thought might be considered with some favor if they were marketable at sat isfactory figure that would make them attractive as Investments for deposits for circulation, and not form a discrimina tion against the 2 per cents.