The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-03-28

~ 1ASfiNtlON, u. u, MaFCn -.
NV The Aldrich currency bill
NV was passed by the Senate
" to-day by a vote of AZ to 16,
in the main a party vote.
Previous to the taking OF the vote on
the Aldrich bill a vote was taken on
the Bailey substitute, authorizing the
government, instead of the national
banks to issue the emergency circula-
tion for which the bill provides. The
vote on the substitute stood 42 to 13,
and this vote was entirely partisan,
even Senator La Toilette casting his
vote with tho Republicans. The bill
has been before the Senate since Janu-
ary 9th. The vote was not reached
Until after 6 r. NJ.
An interesting feature OF the passage
Of the bill was a reiteratIon by Mr.
Aldrich of his promise to bring in a
bill for an investigation OF the entire
banking system of the country, with a
view to instituting reforms
AS passed, the bill provides for not
more tnan s50ooo0.ooo of emergency
currency to be issued to national banks
upon the deposit by them of State.
county and municipal bonds to be ap-
proved by the Secretary Of the Treas
ury.
The currency Is to be issued with a
view of securing an equitable distri-
button of the currency over the United
States. and in accordance with the un-
impaired capital and surplus of banks
in each State. Banks are to pay for
this emergency currency circulation
one-half OF per cent. per month
during the first four months 1t Is cir
culating and afterward three-fourths
of / per cent. n month.
The bill provides that national banks
shall pay not less than per cent. on
government funds deposited with them.
Reserve Funds.
AS amended to-day the bill carries
an important change in banking laws
relating TO banks reserves. This
amendment provides that Of the Is per
cent. reserve required to be kept by
banks not In reserve cities four-fif
Is to be kept In the vaults OF the
banks, and of that amount one-third
can be in the form of securities of the
kind required.
BY another amendment agreed TO
to-day the period during which u of
l per cent interest Is to be charged
was reduced from six to four months.
after which q OF l per cent. Is to be
charged until redeemed.
At the instance of Mr.. La Toilette
an amendment was adopted prohibiting
any national bank from investing its
funds in stocks or other securities OF
corporation the officers or directors
OF which are officers or directors of
the bank, and providing a penalty of
imprisonment of from one to five years.
The proposition to insert provision
for government guarantee of depos
it's in national banks was defeated by
a vote of II to 46 An amendment by
Mr.. La Toilette to punish by from one
to five years Imprisonment any falsi-
fication in bank securities was adopted
Bailey Bill Defeated.
Senator Teller offered. on request
of Senator Bailey, of Texas. who was
absent the substitute currency bill Of
the Senator from Texas. which. he
stated. was in the main similar to the
Aldrich bill, with the difference that
it provided for government instead Of
bank paper, and asked for roll call.
The vote was 13 to 43 against the bill.
Before the vote was taken on the
Aldrich bill, Senator's Teller and john
ston (Democrats) explained their rea-
sons for voting for the measure. and
Senator Overman his reasons for op-
posing 1T.
Mr.. Overman said in part:
The Aldrich bill does not get at the
root of the trouble, but only admins
* is a patch: it is thin patch upon
the crazy quilt of our monetary sys-
tem-a salt solution for use only
when death, is imminent or an emer-
gency comes.
What avail would this bill have
been? what relief would 1t have
brought to the country banks in Octo-
ber last? The country banks do not
own State, county, railroad or munct-
pal bonds. They only bear or 4 per
cent. interest, and the banks cannot
afford to own them when they can
loan every dollar they have at and
5 per cent. These bonds generally go
| to the great money centres and are
| held by savings banks, insurance and
| trust companies and the great national
banks. 1t is monstrous proposition to
say that the banks would have taken
100000 and more of currency from
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