New-York tribune., 1908-02-12
SENATE TALKS FINANCE
ALDRICH MEASURE Up.
Debate on Currency Bill Likely to
Take More than a Month.
IErom The Trihune Rureau.l

washington. Feb. Reconsideration of the
Aidrich financial bill began in the Senate to-
CAV. the reading of the measure, which began
yesterday being first completed The consdera-
tfon of committee amendments brought out
many ideas some of which may be seriously
considered. Senator Lodge gave formal notice
Of an amendment which he will press at the
proper time and which adds the bonds of the
Philippine Islands. of the city Of Manila and
such Philippine railway bonds are guaran-
teed by this government to the securities which
may be accepted as the basis for emergency
circulation This amendment is favored by Mr.
Aldrich and every Republican member of the
Finance Committee except Mr.. Hale, and by nu-
,nerous Democrats. Mr.. Hale, however, has in
dicated that he will make a vigorous fight
esainst it.
Senator Burkett. of Nebraska, gave notice OF
en- amendment. and Senator McLaurin Of an
other while Senator La Toilette seized the op-
portunity offer an amendment extensive
provision for ascertaining the physical Falua-
ton Of railway properties.
Senator Bailey objected to the limitations
placed upon the character OF railway bonds
which may he accepted and Mr.. Aldrich prompt
,y announced that the committee will offer GER
tain notifications when that section is reachea-
Mr.. Bailey then launched into an exposition OF
his financial creed. He declared that he would,
had he the power, retire every form OF currency
now outstanding. and in this way would acquire
gold surplus Of $500 0oG.000. and in lieu Of the
existing forms of currency would issue Treas
ury notes payable in gold. On demand He re-
sented being called a -'Creenbacker," saying that
The advocates OF greenbacks proposed an ire
deensble note whereas he advocated Treasury
notes redeemable in gold. lie declared that ne
would no more delegate the issue or money 10
banks than he would turn the mints over 10
mining corporation and permit 1t TO manulacl-
,,-e the coin of the nation. The existing so4"'-
naa Nl0 Of Treasury notes, Mr- Bailey o9cfale"'
were ample 10 permit. as the result OF a con-
spiracy raid the gold reserve Whlch "ouiu
completely exhaust it. but a S90oeo0oo" goid
reserve would he ample to insure currency OK
s. 5o0o00oeo
In the co,,rse Of the debate Senator Flint re-
ferred TO the fact that the emergency currency
created bv the Aldrich bill constituted a hrst
lien on the assets of the banks. which asser'
tion Mr. Bailey declared to be exceedingly oah-
.erous as the invariahle result Of an asset
currency. or of any currency which constitutes
a first lien on the assets Of the banks. VIII 1elo
in tine of stress 10 promote panic among de-
positors and especially so if they are brought
TO realize that they have only second lien on
the assets of the bank"
Mr.. Bailey gave notice Of an amendment
which
market value no bonds should be accepted un-
der the Aldrich bill IN excess OF go per cent OF
their par value. and that should the. market
value of such securities depreciate the bank
hosting them should be required to add to theIr
so that at no time should the circulation they
had taken out exceed so per cent OF the mar
ket value Of the bonds deposited to secure IT.
Senator Hepburn who was disturbed because
he had been Obliged to assent to the sidetrackhg
of his penal code bill. made various captious
objections TO the parliamentary methods adopted
for the consideration of the Aldrich BILL out
when he made a motion TO change them 1t was
.,upported by only one vote-his own.
To-day's debate demonstrated that large
amount of oratorical steam will have TO hnd
escape before the really serious consideration
Of the bill can make much progress, ana IL Is
estimated by the leaders that it will be not less
than three weeks before an agreement on a GATE
for the final vote can be reached, and that prob
ably two weeks further debate will follow such
agreement.