Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1910-07-19
CURRENCY ASSOCIATIONS
FAVORED BY M'VEAGH

DUBLIN. ". h. July IA statement
ravorfng the formation OF currency as
sociations by national banks under the
AIdrich-vreelsnd bill OF May. lsos. was
given out tonight by Secretary OF the
Treasury Franklin Macveagh at his
summer home here. After explaining that
the law provides for the issuance OF ad-
ditional bank notes IN times Of emer-
eency. either by individual banks upon
deposit OF proper security with the gov
srnment ana payment OF interest on such
notes OF per cent for the first month
and 1 per cent additional for each sue
ceeding month up TO ten, or by the or
SANITATION by ten or more national banks
having a capital OF 100000, the secre-
tary said:
1T has been my feeling for some time
back that the first impulse OF national
banks Immediately after the passage of
the Aldrich-Vreeland bill was the cor
rect one. That impulse was to form AZ
once the national currency associations
provided for in the act. The effect was
to interpret the authorizations OF the
AIdrich-vreeland act as something that
should not await an emergency, but
should be adopted when the financial at
mosphere was perfectly clear.
ONLY ONE ASSOCIATION.
THAT impulse toward the formation OF
the national currency associations was
general throughout the country, but II
resulted in the formation OF only one
national currency association. to-wit: the
one in Washington. d. C. The reason
why this government halted AZ this
time was that the banks encountered as
they thought. one or two serious diffi-
utilities in the law, one OF whiah was
that there would be no provision for
the withdrawal Of a bank after IL Joined
an association While the matter was
being considered IN the treasury de-
partment and before IL became evident
that the objections found by the BANKS
could. and would. be overcome, the i'm
pulse had passed away and the interest
turned toward general banking and cur
rency reform
1T is true. Of course. that the Aldrich-
vreeIand bill was only meant TO opeI-
ate al interim until q reform banking
and currency system should be adopted.
FAvORS REVIVAL.
This reform seemed imminent and SO
the interest IN the National Currency as
rociation was allowed TO diminish /
have felt that this movement should be
revived. While ] am very hopeful OF an
ultimate and not too long deferred reform
that reform IS not as imminent as we
hoped Il would be At this time ! have
thought that the intention OF the Aid
rfch-vreeland bin should be carried out
aud that its powers should be organized
for the interval before the passage OF a
bill permanently reforming the banking
and currency system I have felt that
this Is q favorable time
Il therefore. recommended sometime
axo.the formation OF these associations
TO some OF the national bankers. includ-
ing a committee OF the American Bank
ers' association who came to Washing
ton 10 confer as 10 other treasury mat
tiers
Ny own view OF the associations Is
that they should be formed at such a
time as this, when no one contemplates
any financial conditions which would re-
CURE the use Of their powers. Person
ally I do not expect that any national
currency association will ever within the
life OF the law. have TO avail Itself Of its
powers with respect 20 the issue OF cur
rency. Indeed. / think that very forma-
ton and existence OF these associations
would strongly tend. perhaps efrectualy
andn finally 10 prevent the need of the
exercise Of theid powers I therefore.
minimize the uses OF these associations
IN emergencies and magnify the import
ance OF their influence in preventing
emergencies. They are associated in my
mind with times Of financial peace and
quiet rather than with times of confusion
and CONFUSION"