Show II CI IJA LAW W JI hll Corrects I Er r rune Concerning It h Washington March view ot ol the recently expressed apprehensIon UI at atto to tn of at certain features of tho thit new financial law the following state statement mint ment was made today b by Chairman ot of the House committee on bankin anti all and one of at the thc House conferees es on an the financial bi huh The apprehensions IP expressed UM In many quartets that under the banking tea fea tunes ture of the finanCIal bi bill reent recently passed there wi will be some Inflation I Ido Ido do not doubt has ha some ground It I wi will willbe be unfortunate I If there Was as not for tor we need ned mars mor currency I have no doubt that there her wi will be 1 a Increase In our attn to tn met inset the require meats or of trade It must be considered lii In connection wih wIth this subject that there ar are three natural chek checks upon ex Isue Issues ot of bonk bank currency under the tho new law First I It is II to b be noted that under the operatIon ot of ton ion an considerable Int of bank banknotes banknotes notes would cause au e them to be sent nt Into the tle for redemption In lar large e amounts and th the banks would amount have hae to put UP the lawful money mone for forthe forthe the purpose which would deplete their In the s second nd lae 1 any great reat Il tie mand for or bonds to E for the tho Z I Iper per rents cents would advance the price be ond he limit which would make mako It profitable to ule use them for tor banking purposes pur purO poses O U In which ease cale the banks would quite Ikel likely Mi sell bonds to ta make the profit rather than take out circulation In the thIrd place the tho limIt ot of 1 00 a month uon unon the retirement of at currency wl wIll make banks ver very cautious about inkIng out morl more circulation than the they Mill be able to keep out profitably for once onee out I It might have to rm remain ln out for some Fome time before it I could be reo re retired tred tired These Thue several cheeks wi will oper opar ate ite automatIcally to restrain excessive issues ot of bank currency under the nei ne law I It ma may be assumed that the 10 per percent cent authorized tu to be Issued on bonds bond already deposited will be put ut out out will not exceed In amount In wi round numbers whIch is 18 search more than 1 ter ocr Cent of the tho Iota tatal volume of at atour our and cal ca do n no harm hatm I It Itis is II Imposible impossIble to make inake nn an I p curato for fore forecast cast cat ot of the tho amount of that bo be put out b hr the new banks that 1 Iut wi bo be organized Tere There I ii no ro good I Irea rea reason on to believe lee that it I wi will exceed the ned need In the South and Welt Vest where treal groat inconvenience ha has been currency suffered for lor lack of additional banking |