The Washington times., 1908-03-28
ALDRICH MEASURE
PASSED IN SENATE,
NOW UP TO HOUSE
After Amendments, Bill
Provides for $5O0,000.-
900 Emergency
Currency.

It is now up to the House TO say what
shall be done by this session OF Con-
gress in the way Of currency legisla-
ton.
Late yesterday afternoon, considerably
after 6 O'Clock, the Senate reached q
vote on the AIdrich currency measure.
and passed fl by a vote Of a 10 10. II
was not a strictly party vote, some of
/ the Democrats voting for the bill and
some Of the Republicans against il. Five
Republicans. Senator'S Bourne, Borah,
Brown. Hepburn. and La Toilette. voted
against the bill, anu three Democrats
for it. Senators Owen, Teller. and john
ston.
The bill was materially changed from
the form in which II first came out Of
the Senate Finance Committee. It is
expected that the House viii see TT 20
alter u still further. but VIII pass IT,
One OF the propositions that has strong
support in the House is 20 permit the
use OF high-grade commercial paper as
security for emergency circulation. This
Is urged by Western bankers, who say
they do not carry bonds of any charac-
ter. and would have 20 buy them in a
time Of stress and at high prices in
order 10 issue emergency circulation.
Hence. they say. the bill as it stands
Will be Of no practical use TO them.
As passed. the bill provides for $780,
10000 maximum emergency currency, TO
be issued by national banks. upon de-
post by them. with the Treasury. OF
State, county, and municipal bonds. 10
be approved by the Secretary OF the
Treasury.
Rate of Interest.
For this emergency circulation banks
are to pay one-half Of / per cent a
month the first fou months and after
ward three-fourths of / per cent a
month National bank repositories are
required 20 pay not less than per cent
Per annum on Government money depos-
ited with them.
One Of the amendments adopted pro-
vides that four-hfJhs OF the 10 per cent
reserve which banks outside Of reserve
and central reserve cities are required
10 carry shall be kept in the vaults Of
these banks, and Of that amount one
third can be in securities OF the same
kind used as a basis for emergency cir
culatiOn.
Government guarantee Of deposits was
defeated by a vote Of IL 70 4s
aastic for ii, despite the fact that It is
one OF the reforms urged by W. J..
Bryan senator BaIey's substitute, au-
thorizing an issue OF Treasury notes in
stead OF bank notes. was beaten -
10 s. This was strict party vote.
Amendments Accepted.
It seldom happens that anything pro
posed by Senator La Toilette is accept
able 10 Senator Aldrich, but the unex-
pected happened in this instance. An
amendment proposed by Senator La
Toilette was accepted II provides that
no national bank snail invest It's funds
IN the stock OF any concern whose Of
dcers or directors are officers or dirsc-
tors in the bank. Imprisonment OF from
one 10 five years is provided as the
penalty Tor violation OF this feature OF
the measure,
another amendment suggested by
Senator La Toilette was also accepted
by the Senate after Mr.. AIdrich had
sanctioned it. II provides heavy pen
Elties for bank officers who make false
reports 10 The Comptroller Of the Cur
Ieucy.
one fact that developed was that ;he
Republican Senator's AID not appear to
be anxious 10 follow President ROOse-
Velts lead IN the matter of preventing
Tended 10 prevent national banks from
lOaning funds ia aid of speculation were
\ voted down Senator Kitredge had q
mild amendment 10 provide that no Of
fIcer or empiOye of a national bank shall
be a member OF stock exchange, but
this was defeated.
Following was the vote on the pas
sage Of the bill.
Ayes-AIdriCh Aukeny. BeVertdge.
Braudegee BuTkett, Durham, Burrows,
Crane Cull0m. Curtis. DepeW Dick
Dillingham;. Dixon. Deliver. du POnt
Elkins, Flint Frye, Gallinger. Gamble.
Guggenneim, Hopkins, Johnson demo
craft, kean, Knox. Lodge, Long, Nc
CUmber, Nelson. owen Democrat. Per
Eins, Piles Richardson, Smith Of AIichi-
gan, Smoot stephenson, Sutherland
Teller DDemOcTaD, Warner Warren,
and Wetm1Te. TOtal-42
Oes-Eaukhead, Borah (Republican),
Bourne Republican,, Brown CRepubli-
cam, CulheTsOn. Frazier. Gary Gore.
Hepburn Republican,. La Toilette IRE
pubhcan). McJreary. McEneTy. Nc
1aurin. Overman, Paynter, and Taylor
Totals.