The Washington herald., 1907-02-24
ALDRIGH IS OPPOSED
Proposed Finance Bill Meets
Strong Objection.
INTEREST ASKED OF BANKS
Rhode Island Senator Explains HIS
PaRaeeR for IneIastic Currency aad
Criticises senator Nelson's Amend
ment-Westerner Reiferates Argu-
meRt That Banks Ought TO Pay.


Little progress was made in the Senate
yesterday in an attempt to set action on
the bin for giving elasticity TO the cur
rency, which was reported from the SEN
ate Finance Committee with a unanimous
recommendation.
After an hours debate the bill went
over and viii not be taken up until Tues
day. More opposition than was expected
was developed during the discussion. but
advocates OF the measure declare that
they are hopeful Of its passage before ad-
journment day.
senator Nelson spoke for his amendment
creating national repositories and reQuir-
ing interests on deposits He said Wis
oOnsin sued her State treasurers for peck
citing interest on State moneys. and he
thought the Finance Committee wanted
TO treat national banks as the Wisconsin
treasurers treated themselves.
Senator CuIberson. Of Texas. looked ask
ance at the provision of the bill which
increased the limit of national bank cir
culstiea TO be. retired in any month from
S3,00O,C0O 70 50. 800OJ0.
AIR. Aldrich explained the conditions
thSt influenced the committee 10 report
'he bill IN the form it did. Il was felt
ne said, that only very simple remedy
could be passed at this short session. He
criticised the proposed amendment OF MIR.
Nelson 10 permit the lending of public
funds on approved securities at par, and
directed attention to the fact that all Of
the securities enumerated. except the gov
ernment bonds. were now below par.
The Senator from Rhode Island objected
10 accepting as securities for government
deposits the approved stocks or bends
used for savings banks investments in
New York and Massachusetts because he
thought il should not be put in the power
of savings banks Of one or more States
10 say what should be the character OF
the securities acceptable for government
deposits Mr. AIdrich declared that Mr..
Nelson's proposed depository plan would
shut out most of the country banks, and
concentrate the government deposits in
New York and Chicago because the cOun-
try banks could not afford TO invest in
government bonds and would not invest
in other securities while they fluctuated
as now. Air. .Aldrich said it was fact
known 10 hnanciers that country banks
carried only such amounts of government
bonds as were necessary as a basis for
national bank circulation.
other Bill Failed.
Mr.. Patterson inquired of Mr.. Aldrich
If the Secretary of the Treasury, under
existing law. could desposit the revenues
Of the government at will The Senator
from Rhode Island answered afirma-
lively
Wherein does this section differ from
the measure which the Senator tMr. Al
dricm championed several years ago.
which had for its purpose the direction
Of the deposits Of securities?' inquired
Mr.. Patterson.
we proposed then to fix the securities
which might be received for deposits, q"
said Mr.. Aldrich. There was a contro-
versy about the character of securities.
The committee then undertook to fix
definitely the classes of securities which
the Secretary could receive"
Mr.. McCumber said the agitation for an
elastic currency suggested 10 him the
campaign of 1896, Ahen the contention was
not for an elastic currency. but for a sta
bic currency. He declared the New York
money famine that appeared periodically
was a stock speculative panic and the
government was being sought for aid.
IAN expanding currency to the minds of
a few New York banks" said he, lis a
currency that expands or contracts at
their own sweet will
Mr.. McCumber expressed the opinion
that the currency ought TO be let alone TO
adjust itself. II would go where needed.
II the New York banks could not pay ,
per cent on deposits then the money
would go TO the West where banks, even
national repositories. paid as high as 6
per cent on deposits
The bin was debated until o'clock.
when Mr.. AldTicn yielded for eulogies.
lie announced that he would be out OF the
city tomorrow, but would call up the
bin at the earliest possible day after TO-
morrow
The Senate considered the agricultural
appropriation bin until o'clock IN the
afternoon. having met az H. 40 conclu-
sion was reached, and the bin went over
until t0-mO.TDW-