| Show BANKERS DONT LIKE ALDRICH DILL BILL Association Declares it to be bC u Im inn Impracticable practicable and und Financially Unsound FOWLER BILL IS CONDEMNED st Would Sufi Suro 1 of if ate Would Unsettle Un settle Than Jan Jun IS 1 The resolutions of ot limo tho currency currency of oC the hankers association u a 0 full report ot of duyn ot or the Ilio at which tho the various asset currency plans now before beCore Congress were weN discussed and rejected rims Tho report summarizes the commissions objections to time the Aid Ald Aidrich ld rich Lich bill and the tho present Fowler bill billand and then presents a II hill bill In lu 13 11 sections which tho limo commission with the thc back backing ing HII of oC tho association will recon mend to Congress The Tho Aldrich bill Is declared to b be impracticable unwise anti financial financially ly I unsound Time The Fowler bill according accord ing to the thc report Introduces schemes s iso No o In their scope 1 and touching so 80 ninny many man collateral leral Interests not to the real rel resolution ot of our currency difficulties that we bo he HH Its would unsettle lather than Improve financial conditions SIX CHIEF OBJECTIONS Six Sis principal objections are oro nr urged against the tIe Aldrich bill The Tile first asserts al that the tho measure would overthrow a safe system of ot note issues which has hns been Iwen enjoyed since the tha foundation n of tho limo United Stalest system and the proposed law lawIs lawis Is li called n a step atel backward to tho the con which gave gao rise to to the wildcat currency before the tho Civil war It may mn bo be time the entering us wedge to tho tha acceptance of oC undesirable bonds as security for note tole issues says saS the com commission commission mission These There are tire recent examines In tho the laws of oC New York state legal legalizing legalIzing legalizing izing such Mich bowls bonds tor savings banks In n the tho second place It Il Is urged that flint time iho bill would cripple the lending landing pow power power er of ot banks In that It Il would take from the bank bani reserves In lawful money in ht order that notes for I might ho bo Issued If the time bonds behind these notes were borrowed Instead of purchased 11 IL would have the effect banks of Inc Increasing easing the liabilities sheathe of oC the tho banks ban Its adds the report which Is wrong in 11 principle In the tho third place It Is said eald that the tile bill would tend to create creale a fL fictitious bond market std mId thus Ihus lead municipalities ties tics to tu enlarge o their obligations The fie fourth objection Is that the tech technical technical technical which the bill provideS pro provides vides must be c observed o before notes be lie Issued would entail email such de lie delays delays can cun available make mako the time notes as to lays al after the emergency had ha passed only Tho rho firth fifth fl It h objection b has hus l to u do with time the taxing provisions ot OI the tho t ho Aldrich bill These sections D t In 0 It is declare dell ore would result In tho banks suffering net lIet loss lOlls sm of oC 2 POI per cent on the notes Is Issued Issued sued sued whether they were taken laken bondu purchased aset or 01 borrowed against purr asserts that th Ih sixth objection cost The Tho of ot taking out thc tho bt notes would b i ultimately by b the needy need borrower paid paM who wound would bo he burdened burdene by Increase Interest charges at nt a II lime time of or year he lie can cun cunill usually In III the autumn au n when ill afford them After Alter some somo general of the Fowler bill the tho commission sums up the situation as liS follows unmindful of of oC the Let UH not be lie JI demands ot of to the tho fact that in response tho limo people unsound rind 1111 radical legis legislation lation lallon has hns had hall its precedents in III our history hll tory After Aftel the pate panic of ot monetary 1873 1813 Congress passed a I bill Increasing greenbacks b by a II project President which was wall wisely vetoed by 1593 Con Call Congress Grant Alter After tho the panic ot of approved a measure providing gress tor Cor the coinage of or in III silver which was wall vetoed by b President Cleve Clove land laid In Ill these two Instances we wu havo have fut fol following had examples of hasty busty measures lowing financial panics and amid an in the two bills herein discussed we have what whaL unwise appears Lu lo us to be similar measures the mho recent crisis The Thu ho solution proposed l by hy the time com coma commission mission diners differ from the time first Fowler bulb which wi waa wua bused bl ed upon principles approved by the convention of oC the lima th American Hankers association at l At Al Atlantic AlInn Atlantic u lantic Inn tic City City Sept 23 2 1901 in that Ihn the tho holder of oC a IL mu credit note Instead of being a general creditor shall shull have haven havea havea of or the issuing SU SUIn a n prior 1101 lien on the tho assets big ing In batik bank hauk rime Tho security provides by b pledging tho time holo of oC assets of a u bursa In III Instead stead Stend ut of only a I portion of oC them would afford more desirable protection to tho It Is Ie also adao said that the thu adoption ot of time thu plan plant would insure an au ample amplo supply of oC currency to ta tho limo pub pUO public lie lic relict rent from fro disturbed conditions such Buch as all those tin which wo we recently punned and finally the tha reth retirement of ot thu the notes when whon time the they have hlo fulfilled their purpose TUB BILL 1 The 1110 bill favored faVorel by the commission provides Arty Any 11 national banking association which has hail blot been In for tor ono one year tad and IIII lion hM a II surplus fund equal to lO toJO 20 JO per err cent cant of UC Its capital may lilli take tuko out fur tur la mid and circulation national bank banknotes notes without a J ot United Sates bonds as an now no provided by low law Said shall bo be known an as JH national bank guaranteed credit notes notcH Said Suld hates shall bu issued in III suet such form forte and denominations and 1111 under ampler such rules tules tad and regulations as Uli time tile comptroller of oC time the currency shall tux The fhe amount of ot said bald notes m so Ill taken out by tiny any nation national al III banking nay lIlY be 1 equal ID to 40 0 per coil cent of nc tho the amount ot of Us its na nu national bank notes ut lit any unY mug in which are aro secured by time the deposit of government bonds bunds hut hit shall not hot ex cx coed in III amount is 26 item pur 1 1 cent of oC its Ita cap amp capital ital provided that It If ut rat any uny anytime time thou in the tho future the present proper proportion thou tion or of the tho total outstanding ilK United bonds to the total capital capitalization it ullon I of all ull national banking tanking associations lIons In III n active operation Khali then Ulan lime thu issue of at national hank guaranteed credit notes he bu Increased to tn u II greater of or time thu bond secured Huch Huai notes urn ere III t to tn bo ho taxed Hi 14 por pur cent rent Any AllY national banking bunking association which Wiloh hits hns taken out national bunk credit notes In Ili accordance with time thu provisions of oC 1 ot of this act nay may tako out at l further amount of or national bank credit notes note equal to In J I B por JOI cent of at UH Ito capital but It shall shell pay a II tax lax of oC 2 4 1 per pel emit Cout Tho total amount nf ut bunk bank notes In Is lied by b tummy liny national bunking association tion Ilon including g national halt bank feed credit flutes tint not exceed e CI c tl tin the Ill amount of tiC il Its 1111 paid up lIp capital |
