The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1910-07-19
{By the Associated Press.)

(By the Associated Press.)
Dublin, n. H, July ia statement
favoring the formation of a currency
association by National Banks under
the Aldrich-Vreeland law Of May 80,
1908, was given out tonight by Sec
rotary of the Treasury MacVeagh at
his ummer home here. After ex-
planning that the law provides for
the issuance Of additional bank notes
in time Of emergency either by indi-
vldual banks upon deposit OF proper
security with the government and pay
ment Of interest on such notes of 5
per cent, for the first month and l
per cent additional for each succeed
ing month up to ten; or by the or
s~anlzatlon of ten or more national
banks having a capital of five million
oollars the Secretary said:
1t has been my feeling for some
m back that the first impulse Of the
national banks Immediately after the
passage Of the Northumberland bill
was the correct one. That impulse
was to form at once the National Cur
rency Associations provided for in the
act. The effect was to interpret the
authorizations of the
land act as something tina should not
await an emergency but should be
adopted when the financial atmos-
phere was perfectly clear"
Inc secretary states that while thai
lmpulse was general toward the form
alton of National Currency Assocfa
tionss it resulted in the formation ot
one such association that in h
toh' II. Z. The secretary explains that
one OF the reasons why this move
neht matted was that the banks en-
countered, as they thought, one or two
serious difficulties in the law. one OF
which was that there would be no pro.
vision for the withdrawal of a banl
after 1t had Joined an association.
I have felt hat his movement
should be revived continued Score
tary MacFeagh. "While I am yer,
hopeful of an ultimate and not to,
Ion deferred reform of our bankin,
and currency systems, that reform i
not not as imminent as we hoped j
would be at this time. have though
therefore, that the intention of tn,
Aldrich-Vreeland bill should be car
rled out, and that it's powers SHOULD
De Oganlzed for the interval bef0r,
the passage Of a bill permanently re
forming the banking currency sys
tenn. l have felt that this is a favor
dDlt line.
Il therefore recommended some
time ago the formation of these asso
Citations to some of the national bank
ers, including a. committee of tn
American Bankers Association, VIII,
came to washington to confer as t,
other treasury matters. Ny own view
of the national association is that the
should be formed in such a time a
this when no one contemp plates an
financial conditions which would re
quire the use Of their powers. Per
sonally, [ do not expect hat any ma
uOnai currency associations will eve
within the life of the law have t
avail itself of it's powers with respec
to the issue Of currency. Indeed,
think hat the very formation and ey
astence of these associations woul
strongly tend, perhaps effectually an
finally tend, to prevent the need Of tn
exercise Of their powers. I therefor
minimize the uses of these association
in emergencies and magnify the I'm
portance of their influence in prevent
Ing emergencies. They are associate
IN my mind with times of fnancis
peace and quiet rather than with time
OIL confusion and conVulSiOn.'