The Springfield herald., 1908-04-03
SENATE PASSES
ALDR|CH BILL
SUBSTITUTE AUTHORIZING GOV.
ERNMENT TO ISSUE EMERGEN-
CY CURRENCY DEFEATED.
NEARLY A PARTY VOTE
GOVERNMENT GUARANTEE OF
DEPOSITS IN NATIONAL
BANKS VOTED DOWN.

Washington.-.The Aldrich currency
dill was passed by the senate Friday by
a vote of AZ to 1G, in the main party
vote.
Previous to the taking of the vote or
the Aldrich bill vote was taken on the
Bailey substitute, offered by Senator
Teller on request Of Senator Bailey of
Texas. who was absent, authorizing the
government instead of the national
banks to issue the emergency currency
for which the bill provides. The vote on
the substitute stood AZ to 13 and this
vote was entirely partisan, even Scna-
tor La Toilette casting his vote with
the Republicans.
The bill has been before the Senate
since January End. The vote was not
reached until after 6 p. m. and the gal
!eries We're practically empty.
An interesting feature of the passage
of the bill was reiteration by Aldrich
OF his promise TO bring in bill for an
investigation OF the entire banking
system of the country, with view to
instituting reforms.
AS passed, the Aldrich bill provides
for not more than $3.50, 900 of emer-
geucy currency to be issued to national
state, county and municipal bonds to
be approved by the secretary Of the
treasury.
The currency is to be issued with n
view to securing an equitable distribu-
ton of the currency ever 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 one per cent month during
the first four months it is circulated,
and afterward three sourths of one per
cent. month.
The bill provides that national banks
shall pay not less than one per cent on
government funds deposited with them.
AS amended the bill carries an i'm
portant change in banking laws relat-
ing to bank reserves. This amendment
provides that of the fifteen per cent.
reserve required to be kept by banks
not in reserve cities, four-ffths of this
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, which was
agreed to, the period during which one.
half of ore per cent interest is to be
charged was reduced from six to four
months, after which three-fourths OF
one 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
I funds in stocks or other securities of
a corporation the officers or directors
of which are officers or directors OF
the bank. and providing penalty of
I Imprisonment of from one to five
years.
The proposition to insert a provis-
Z ion for government guarantee OF de-
posits in national banks was the sub
ject of an extended debate and was de
( feated by vote Of IL TO 46, most OF
the Democratic votes being cast
against the proposed amendment.
Another amendment offered by Mr..
La Toilette prohibited loans by a ma
1 tional bank to its officers or to airy cor
poration the majority stock of which
is owned by the officers Of the bank.
II was rejected. as was also an amend
ment offered Dy Mr.. Nelson (Minne-
sota), providing that no officer or EN-
ploye OF rational bank shall be a
member of a stock exchange, or en-
gagel in buying or selling stock or
bonds on commission basis.
] Before the vote was taken on the
| Aldrich bill Senator Teller explained
his reasons for voting for the meas
ure.