Los Angeles herald., 1908-01-26
DEMOCRATS
DRAFTBETTER
BANKING LA w
BAD FEATURES OF ALDRICH'S
MEASURE CUT OUT
PROVIDES FOR GOVERNMENT IS-
sUANcE OF MONEY
Proposed Law Patterned After That
Projected by Senator BalIey-No
Radical Reforms contem-
plated ct Present
ey Associated Press.

BY Associated Press.
WASHINGTON, Jan. 25.-An all-day
conference of the Democratic senators
today resulted in directions to the
minority of the committee on finance
to prepare a bill which will be urged as
a substitute for the Aldrich bill and
possibly be given the support of all the
Democrats of the senate.
The Democrats on the finance COM
mittee will take no action along these
lines until the data requested of the
treasury department by resolution and
promised for early next week has been
received and gone over by the COM
mittee.
Judging from the views expressed by
the Democrats a bill somewhat along
the lines of the measure recently sug-
geste by Senator Bailey would be
forthcoming.
Senator Bailey's proposed substitute
for the Aldrich measure provides for
the issuance of money by the govern
ment instead of by the banks. One of
his plans in regard to this project is to
have the bill conform to the Aldrich
bill In every particular save for the
mode of issuing the currency, which
will be through deposits in national
banks and the collection of interest
therefor.
Banks Must Give Security
The banks receiving currency deposits
will be required to file securities with
the government in exactly the same
manner as provided in the Aldrich bill
Mr.. Bailey has another plan, which
provides for the deposit of funds in
designated depositaries only. A sug-
gestion which seemed to gain favor In
the conference was the extension of
deposits to state banks.
AS the talk went along there grew
tacit agreement among the majority of
the Democrats in the conference to the
effect that purely measure for an
emergency currency would be proposed
and supported. The idea of coming
forward at this time with bill in
tended to Introduce radical reform in
money matters was gradually lost sight
of, and Senator's McLaurin and Owen
were put in possession of the under
standing that their measures, so earn
estly advocated during the morning ses-
sion, would have to be abandoned for
the present.
Another conference of Democrats will
be called as soon as the finance COM
mittee Democrats, consisting of SEN
ators Daniel, Teller, Money, Bailey and
Taliaferro, draw up their bill after
perusing the treasury department fig
ures.
AIdrich Makes Changes
When the senate committee on
finance meets next week Chairman
Aldrich will be prepared to exhibit the
perfected text of his currency bill.
During the recess of the committee Mr..
Aldrich has been engaged with other
prominent Republican members in put
ting the finishing touches upon the
measure, and they held their final
meeting today.
Among the more important changes
will be one accepting Senator Bailey's
proposition for distribution of the pro-
posed surplus bank issue among the
various states In proportion to their
banking capital and surplus.
Senator Bailey has been engaged in
preparing a substitute bill in which
this feature is given prominent place
and it Is not yet known whether he
will desist when the action of the ma
jority membership becomes known.
other changes which it is hoped will
have a modifying effect upon opponents
both In the Democratic party in the
senate and among western Republi-
cans. are one increasing the amount of
extra circulation allowed by the bill
from $250,000.000 provided by the first
draft of the bill, to $500 100000, and an
other making radical changes In the
provision In regard to municipal bonds,
which the bill provides shall be ac
cepted as security for the surplus
issue.
AS the bill stands it requires that
cities whose bonds may be accepted
shall be fifteen years old, have not
fewer than 10000 population and shall
not for ten years have defaulted on
any bonded Indebtedness. In the new
print all these restrictions and defini-
tions will be eliminated and the author
tiles thus will be permitted to pass
upon all municipal bonds upon their
merits.