New-York tribune., 1908-03-04
STILL TALK FINANCE.
Senator's Keep Up Discussion Of
AJdricb Currency Bill.
Irre- The Tribune Burssu J

Washington March S-Senator Mccuraoer
spoke AZ length on the Ald-lch bill in the Senate
today. saying. IN effect, that he would Vote
fcr the bill with certain amendments he aoVo-
Gated an amendment which would prevent the
acceptance. as the basis for emergency cur
rencv. OF any security which was not repre-
sentative of actual property Of known value
Replying 10 objections offered by Senator Smith
70 The inclusion OF railway bonds. Mr.. Nc
Cumber made toroetuI and convincing argu-
rent He further advocated the adoption OF an
amendment guaranteeing depositors n natiosisi
banks against loss, but was unabls TO deIeno
this proposition against the argurnarts present
ed bv senators Carter. Fulton. Sn1oot ana
Aldrich
Senator Carter called attention 70 the fact
that the Nelson amendment proposed - segre-
gate oae-third Of the annual revenue from IA
ttonal banks as fund TO guarantee deposits
This would amount 20 $4,000 an amount
which M Carter declared 10 be wholly made
quate % secure deposits amounting TO Si.2tSt,-
100000. Nr. rIcCumber argued that Ssoopoe
Mould have proved sufficient to make good me
losses Of deposirors during the vears from 1923
u 1893. but Nr- Carter pointed out that the
figure represented the average net ultimate loss
% depositors and thar # i were proposed 20
insure the deposiJor against loss he must be
guaranteed the prompt payment Of his loss
q
that the government would make good only
the net ultimate loss. after period Of liquIda-
ton extending possibly over many years, there
would b no insurance against runs on the
banks. The Senator from Montana said further
that IN 1897 alone the total liabilities Of banks
which failed amounted 10 S25.5oo000, In time
when rb4 assets of rhe banks had al been
realized upon. this figure was reduced 70 81
245eD0 hut that was only after protracted de-
lay Senator Knox inquired what possible de-
gree - confidence a fund of SS@o00 would in
spire as I guarantee % over S4Hppft"t1
Senator AldIich called attention 10 the fast
that he Ii7hiIiries Of the banks which had
failed since October |. 1907. had amounted 70
so Oo0 Nj. Carter replying TO Mr.. Nelson,
declared there were just as sound and as con-
se-vatIve banks and bankers IN New York City
IS elsewhere. banks which conducted an entirely
legitimate banking business. untainted by Wall
Street speculation. n conclusion, he said tnat
he would regard some adequate method Of
guaranteeing depositcrs in national banks
against loss as a most desirable addition 70 the
stability q banks. but until there were penal
laws which would greatly shorten the path 10
the T.eniteutiaTy Of the banker who WlltuIiy
and deliberately engaged in wildcat speculation
he would regard any Undertaking Of such
guarantee hy the government as dangerous IN
The extreme.
Nj NcCuraber further asserted his conviction
that II would be necessary 10 increase the tax
on the rroposed emergency currency above the
nor cent per annurn provided bT the bill, as
that rate would be wholly inadequate . compel
its retirement in the West. He urged that some
rrovision he adopted n compel retirement
within Two months and the adoption Of al IN
creased. possibly graduated. tax. rising TO d
maximum OF 10 per cent.
Il Is becoming obvious that certain railways
whose bonds would not be available under the
terms Of the AldriCh bill are eXertinG all pos
sibIe influence 10 secure its defeat. but The
Senator in charge n the measure Is confident
that i viii pass both houses.