The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-02-24
DEBATE ON THE
CURRENCY BILL
Senator AIdrich Endeav0ring to
Get Action Before the
Session Closes.
ACKNOWL EDGES A MISTAKE
NELSON OF MINNESOTA HAD
THE PROOF.

Washington. Feb. Ex-senator Al
drieh. who has for some days been en-
deavoring to get final action on his
currency bill. called the measure up in
the. senate shortly before o'clock to-
day. Discussion progressed until 5
O'clock. when the special order for eulo-
gies interfered. and the measure went
over until next week Mr.. AIdrich stat
ing that he should call it up at the ear
lest opportunity after Monday
senator Nelson explained the nature
and intended operation of his amend
ment to the bill. The amendment per
mits the secretary of the treasury to
receive as security for the deposits of
government funds in national banks
gOVernmen bonds. and, at his discre-
ton state or municipal bonds. also
such bonds as the law permits the
banks of Massachusetts and New York
to accept.
Question of interest.
II further provides that the banks
shall pay the government at least , per
cent interest per annum on the daily
balances on government deposits. Mr..
Nelson combatted the idea that such a
requirement would change the charac-
ter of the government deposits. saying
that if it was held that banks reeeiv-
ing such deposits were fiscal agents
of the government the money they thus
received should be kept intact by them
and not loaned out on interest He said
the bettsr class of banks did not object
to paying interest on government de-
posits.
As to the first proposition. Mr.. Nelson
a M he II
that the secretary was now receiving
railroad bonds as security. Senator AL
driei had questioned this at the time.
and Senator Nelson produced today a
letter from banker of St. Paul, which
stated that the secretary had received
from him as security for government
deposits 100000 of Northern Pacific Az
per cent and $50, O0e 4 per cent Union
Pacific bonds.
Aldrieh Was Mistaken.
Senator Aldrich admitted that he had
been incorrect il denying the state
ment. Senator Nelson said he did not
know by what authority the secretary
had, RECEIVED such. securities. unless it
should be the words and otherwise
in the law, saying government deposits
should be secured by United States
bonds and otherwise"
Later. when Senator Aldrieh was dis
cussing the hill. the same point was
reached, and Senator Nelson asked by
what authority had the secretary OF
the treasury received other than gov
eminent bonds.
4 must confess that / do not know. >
answered Mr. Aldrich.
II do know that he has been receiv-
ing miscellaneous character of securi-
ties, but so far as l know he has never
reported TO congress the class of securi-
ties ne has been receiving
PerpIexing Questions.
The Nelson amendment as explained
by Mr.. Aidrich would require all gov
eminent funds to be kept in national
banks, and thus the large banks of tht
country which habitually carry United
states bonds as investments would re-
cefve the deposits
Mr.. Aldrfch said the finance commit.
tee had realized in dealing with tbs
questions that they were many and diff
ficult, but that if an attempt was made
to solve them at the present short SEES
sion failure in ali respects would re-
suit.
Therefore. he continued. "the COM
mitee reported a bin permitting the sec
retary of the treasury to deposit Gus
toms receipts in national banks in the
same manner as he deposited internal
revenue receipts.
As matter of fact, the secretary OF
tae treasury is doing this now by de-
posting in banks all of the internal
revenue receipts and using the GUS
toms receipts to pay current expenses
~ b e. TO-