Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-01-07
RESULT OF MUCH WORK
Regarded as Having Support of Re.
publican Leaders.
CANNON THOUGHT TO FAVOR IT
Measure introduced in Senate and
Referred to Finance Committee,
Where It Will Be Considered.

Where It Will Be Considered.
Senator Aldrich introduced his
financial bill in the Senate this
afternoon. 1t provides for an adj
ditionzl issue of hank circulation.
which shall at no time exceed
upon bonds other
than those issued by the govern
ment, including state and NUM-
cipal bonds, in. approved cases.
The controller of the currency is
given discretion in the issuance of
the proposed currency, and is au-l
thorized to decide as to the time
and the amount to be awarded to
any banking institution. 1t is pro-
vided that the increased circula-
ton shall in no case exceed Is per
cent of the value of the bonds de-
posted.
Senator Aldrich. chairman of the finance.
financial bill in the Senate this afternoon.
The bill ostensibly is to present the
view of the majority of the republicans,
on the Senate finance committee, and is
supposed to have the concurrence of Sec
retary Cortelyou and Speaker Cannon.
thus giving it. standing with the dominant
party, and both houses Of Congress.
The finance committee met this MORN
ing, but the bill did not come from the
public printer in time to allow the COM
mlttee to go over it. Instead, members;
Of the committee were given copies Of the
bill and will peruse It at their leisure. /
After being introduced the bill was or
dered referred to the committee. and the
committee will take it up in regular ses-
sion In due season.
The bill is the result sof a great deal of
work on the part of Senators Aldrich,
Hale and Allison and other republicans.
in conference with republicans in the
House. and members of the administra-
ton. It is not supposed that the bill will
gress. because opinions are varied on the
subject of finance. The authors of the
bill. however, feel that some kind Of a
basic measure should be presented. which
leaders Of the administration and in Con-
gress. and which could be presented az
bill which would be acceptable to the ma
jorfty of the party responsible for legisla-
ton.
Requirements as to Bonds.
Following are the first three sections Of
the bill:
THAT any national banking association
which has circulating notes outstanding
secured by the deposit of United States
bonds to an amount of not less than 80
per centum Of it's capital stock, and which
has surplus of not less than 20 per
centum, may make application to the con-
troller of the currency for authority to is
sue additional circulating notes to be Sc
cured by the deposit of bonds other than
bonds of the United States. The controller
of the currency, II in his judgment busi-
ness conditions demands such additional
circulation and the condition of the asso-
citation making the application warrants
the issue, may approve such application
and shall determine the time Of issue and
shall fix the amount, within the limta-
tions hereinafter imposed, of such addi-
tlonal circulating notes to be issued
Whenever after receiving notice of such
approval any such association shall de-
posit with the treasurer or any assistant
treasurer Of the United States such of the
bonds described in section 2 Of this act
as shall be approved in character. and
amount by the treasurer Of the United
States and the Secretary Of the Treasury.
1t shall be entitled to receive. upon the
order Of the controller Of the currency.
circulating notes in blank. registered and
countersigned as provided by law, equal in
amount to 20 per centum OF the market
value, as fixed by the treasurer of the
United States of the bonds so deposited.
such additional circulating notes to be
used. held. and treated in the same way
as circulating notes of national banking
associations heretofore issued And Sc
cured by deposit Of United States bonds,
and shall be subject to all the provisions
Of the law affecting such notes:
Provided That the amount of such
additional circulating notes delivered at
any time to any association shall not in
issue by the controller of the currency.
And provided further. That the total
amount Of circulating notes outstanding
of any national banking association Sc
cured by United States bonds or other
wise, shall not -att any time exceed the
amount Of It's animiaired capital and sur
plus
"And provided further. That there shall
not be outstanding at any time circulating
notes issued under the provisions of this
act to an amount of more than $3.50
100000.
"And provided frrther. That all acts
and orders Of the controller OF the cur,
rency and the treasurer of the United
States authorized by this section. shall
have the approval Of the Secretary Of
the Treasury"
Requirements as to Bonds.
"section 9 That the treasurer of the
United States, with me approval OF the
Secretary of the Treasury. may accept as
security for the additional circulating.
notes provided for in the preceding sec
ton, bonds or other interest-bearing obl-
cations of any state of the United States
or any legally authorized bonds issued for
purposes by any city or county
in the United States, which has been in
existence as city or county for a period
of fifteen years. and which for period of
ten years previous to such deposit has not
defaulted in the payment OF any part OF
either principal or interest of any funded
debt authorized to be contracted by II. and.
which has at such date more than twenty
thousand inhabitants as esta blished by the
last census, and whose net indebtedness
does not exceed 10 per centum of the val
uation of the taxable property therein. to
be ascertained by the last preceding valu-
alton of property for the assessment of
taxes; or the first mortgage bonds of any
company, not including street
raIiway bonds which has paid dividends
of not less than per centum per annum
regularly and continuously on its entire
capital stock for period of not less than
FIVE years previous TO the deposit of the
honds The treasurer of the United Statea.A