The Washington times., 1907-02-24
Senator Nelson Objects
to Big Loans to Wall
Street.
McCumber Opposes Bill,
Making a Similar
Complaint.
Measure Goes Over, But
Comes Up Early Next
Week.

When Senator Aldrich called up the
currency bill in the Senate yesterday
afternoon a spirited debate was at once
precipltated. So earnest was the dis
CUssion and so many were the questions
raised in connection with the bill that il
was forced TO go over until next week.
Senator Aldrich announced he would be
compelled TO be absent from the Senate
Monday, but that he purposed ia call
the bill up again at the earliest oppor-
tunity. Such was the opposition mani
tested 10 the measure that. despite the
fact financial circles are earnestly urg-
ing the enactment of the bill. it now
looks extremely doubtful whether its
enactment will be permitted this ses-
sion.
The bill which Senator Aldrich is
pressing provides for three things. more
notes of smaller denomination. the de-
post of customs revenues in national
bank repositories, and the increase from
100000 10 $1,000. 600 Of the amount of
currency that may be retired by the
national banks in any one month.
Nelson's Amendment.
Senator Nelson has proposed an
amendment to the bill which contains
a number of important provisions. one
of these is that interest Of a minimum
of per cent shall be charged by the
Government to banks that have deposits
of public moneys Another provides in
substance for the legalization Of a prac-
tice that Secretary Shaw has been fol-
lowing and would allow banks to deposit
with the Government as security for de
posts of public moneys. not alone Gov
eminent bonds. but State, municipal.
and such securities as are accepted By
the savings institutions of MassaChu-
sets and New York. It also provides
for the distribution of deposits of public
moneys throughout the country and pre-
vents their accumulation IN a few great
banks of the big commercial ceuters,
and it requires that all the public moneys
outside OF a safe working balance shall
be kept on deposit in the national banks.
When this bill came up yesterday
afternoon, Senator Nelson urged his
amendment in an argument of some
length. lie denounced the present
methods whereby the banks of New
York rush into Washington in times of
financial stress. get millions of money
10 be put on deposit and then loan &c
out TO the stock spectators on stock
collateral Inc Dl-ECHL harvest or these
banks. said Senator Nelson. IS in these
financial fiurries. He declared that fl
these banks got large returns ia in
terest from the use OF the deposits of
public moneys il was simple justice only
that they should pay the Government
interest on those deposits.
Reflects on Shaw.
Senator Nelson did not refer to SecrC-
tary Shaw. implicitly his remarks were
2 criticism of the policy Secretary Shaw
has been pursuing of going 20 tho relief
of Wall Street at frequent intervals. The
Minnesota Senator contended there vas
no equitable distribution Of the public
moneys. In most cases. ne said.
these deposits are dumped into the
big banks Of New York city. I do not
know the aggregate figures, but 1 take
it over half the deposits of public
moneys go TO New York"
Senator AldriCh defended the bill MS
reported from committee and opposed
the Nelson amendment. He objected TO
the provisions of this amendment as TO
the kind # bonds and securities that
could be used 10 secure public money
deposits. Senator Nelson asked what
the Secretary Of the Treasury was doing
now.
Il do not know" answered Senator
AIdrich.
Would it not be better" asked Sen