New-York tribune., 1903-02-10
A NEW BANKING BILL.
MR.. 4LDRICHS MEASURE.
Provides for More Elastic Cnrrencu
Likely to Become Lac.
rRY rELBaRArH TO THE rRrBUNE.l

III
Washington. Feb. 9--Senator Aldrich to-day
introduced bill providing a means for adding
10 the elasticity CT the currency BY the pro-
visions of the bill the Secretary Of the Treasury
is authorized to deposit in national banks public
money received from all sources" thus permit
ting the deposit of customs receipts in banks
In place OF in sub-treasuries as has heretofore
been required. AS security for government
funds. the Secretary Of the Treasury is author
tied to accept bonds interest bearing ohliga-
tons Of any State" or any legally authorized
bonds issued for municipal purposes by any city
IN the United States which complies with GER
tain prescribed conditions The rate Of interest
20 be paid by the banks for the use CT such
moneys shall be fixed by the Secretary OF the
Treasury, but shall be mot less than 11k per
cent
Important and far reaching as are the pro-
visions OF the bill. Senator Aldrich to-day told
8 Tribune correspondent that he believed the
measure would become g law before March 4
so necessary and important are its provisions"
said Senator Aldrich that I believe the bill
viii pass without material opposition Both
Senators and Representatives are favorable to
the measure and I believe it will be put through
with the greatest expedition"
The provisions Of the bill follow
Te further provide for the safekeeping Of pub
lic money and for other purposes, that Section
hl53 OF the Revised Statutes be and is hereby
amended TO read follows:
Section 5.l53. All national banking associa-
lions designated for that purpose by the Secre-
+arv OF the Treasury shall be repositories Of
public moneys under such regulationsas may De
prescribed by the Secretary. ana tHey may aLso
be employed as financial agents OF the govern
-nent and they shall perform all such reason
able duties as repositories OF public moneys ana
financial agents OF the government as may Dc
required Of them
The Secretary of the Treasury may deposit
in such designated repositories public money
and Sha1l
depostories TO give satisfactory security as here
matter authorized for the safekeeplng ana
oronlpt payment of the public money so depos-
tied with them and for the faithful perform
ance Of their duties as financial agents OF the
government
The Secretary Of the Treasury may accept as
security for the safekeeping Of public money
deposited with national banking ASSOCIATIONS:
as herein authorized. the oeposlt OF ponos Ui
the United States or other interest bearing obl-
cations of any State of the United states or any
legally authorized bends issued Tor munlclpal
1,nrposes by any city in the United States which
has been in existence city for perloQ OF
-V-enty-f1ve years and which for a period Of ten
wears previous to such deposit, has not oeIau!teo
in the payment OF any part OF eltner pIIncIPai
or interest Of any debt authorized to be contract
ed by IL and which has at such Gate more tndH
one hundred thousand inhabitants. established
hv the last national State or city census, ana
whose net Indebtedness does not exceed lo per
cent OF the valuation Of the taxable properly
therein TO be asceTtained by the last preceolns
valuation Of property for the assesl assessinenl %
taxes: or first mortgage bonds OF any ral!rodu
rorr7Dany which has paid dlVl0enQS OF not leSS
than per cent per annum regularly on us en-
fire capital stock for q period OF not less imam
Ten years previous TO the deposit OF the oonos;
The Secretary of the Treasury may accept the
securities herein enumerated in such proper
tions as he may from time to time oeteruhe.
and he NAV at any tine require the oeposll oI
additional securities, require any oeposltory
70 change the character Of the securities al
ready on deposit
National banking associations having on oe-
posft public money shall pay 10 the Onlteo
states for the use thereof interest at the rate OF
moi less than u per cent per annum such rate
10 be fixed from time tc time by the secretary
of the Treasury. and all public moneys IN any
depository shall be payable on demand upon the
draft of the Treasurer OF tht United States
The bill also makes the bonds 10 be issued on
account OF the Panama Canal eligible for use
as security for bank notes. The payment OF
one-ouarter Of per cent every six months on
such notes as are based on the canal bonds Is
also required.
Another provision OF the bill authorizes the
Secretary of the Treasury to retain in the gen
eral fund Of the Treasury nationa. bank notes
received in the ordinary course Of business or
presented to the Treasurer of the United States,
and 10 pay out such Of them as may be fit for
circulation for any Of the obligations of the
government, excepting only the principal and
interest on the public debt.