The Morning examiner. [volume] (Ogden, Utah) 1904-1910, 1910-07-17
PLAN NEW
CURRENCY
SYSTEM
Additional Bank Notes to Be Is
sued in Time of an
Emergency.
FORMATION OF MANY
CURRENCY ASSOCIATIONS
Secretary of Treasury MacVeagh
Issues Lengthy
Statement.

BULIN, NJ H.. July 16-A state
ment favorlng the formation OF cur
rency associations by national banks
under the Aldrich-VTeeland law Of
May so. 1908, was given out tonight
by Secretary of the Treasury Frank
lin MacVeagh at his summer home
here 1fr
After explaining that the Law pro-
vdcs for the issuance OF additional
bank notes in time of emergency.
either by individual banks upon de-
posit of proper security with the gov
ernment and payment OF interest on
such notes OF . per cent for the first
month and l per cent additional for
each succeeding month UP 10 ten; or
by the organization OF ten or more
national banks having capacity OF
five million dollars. the secretary
said
1T has been my feeling for some
time back that tho first impulse of
the national banks Immediately after
the passage of the Aldrich-VTeeland
bill was the correct one. That im-
pulse was TO form at once the ma
tional currency associations provided
for In the act The effect was to In
terpret the authorizations OF the AID
rich-Vreeland act as something that
should not await an emergency but
should be adopted when the financial
atmosphere was perfectly clear
Now that impulse toward the for
nation OF the national currency asso-
Citations was general throughout the
country. It. however. resulted Ia the
formation OF only one national cur.
rency association. to-wit, the one In
Washington, D. c. The reason why
THIS movement=halteda at-the time WAS
that the banks encountered. az they
thought, one or two serious difficulties
in the law. one Of which was that
there would he no provision for the
withdrawal of a bank after IT had
Joined the association, While the
matter was being considered In the
treasury department. and before IL
became evident that the objection
found by the bank could and would be
overcome. the impulse passed away
and interest turned toward general
banking and currency reform.
at Is true OF course, that the Aid
rich-Vreeland bill was only meant TO
operate ad interim until reform
banking and currency system should
he adopted. This reform seemed I'M
minent, and so the interest in the
national currency associations was al
lowed to diminish I have felt that
this movement should be revived.
While | am very hopeful OF an ulti-
mate and not too long deferred reform
of our banking and currency systems,
that reform is not as imminent as We
hoped it would be at this time
have thought that the intention of the
Aldrich-Vreeland bill should be car,
ried out. and that its powers should
he organized for the intervals before
the passage of a bill permanently re-
forming the banking and cnrroncy
system / have felt that this is fa.
yorable time.
II therefore recommended some
time ago the formation of these asso-
Citations TO some of the natlonal bank
ers. including a committee OF the
American Bankers association, who
came TO Washington to confer on
other treasury matters. Ny own view
of the national associations is that
they should be formed In such a time
as this when no one contemplated any
financial conditions which would re-
quIre the use OF their powers Pen
sonally I do not expect that any ma
tional currency association will ever
within the life OF the law have to