The Birmingham age-herald., 1908-01-31
In Committee Meeting Demo- crats Vote For the Bailey
 Substitute
LIMIT OF CIRCULATING
 NOTES IS $500. 100000
MT. Aldrich Explains His Bill By Say. ing the Majority of Committee Favored 1t, But Minority
 Might Offer Another.

Washington January s0.-senator Ald- rich. chairman of the Senate committees on finance, today favorably reported his pili providing for an emergency increase Tn the national bank circulation. The report was authorized at a meeting Of the committee held today, at which all the republicans present voted for a resolu- ton authorizing the reporting of the bill. ana all the democrats voted for the Bailey substitute. Senator Hansbroueh who favors central bank scheme. was 10 turn the best up and said it would be corded. The only democrats in attend ance were Senators Teller, Bailey and Daniel. Senator Tallaferro. who Ia ab- sent in Florida, was recorded as for the Bailey substitute. Senator Money also was absent and his vote was unre- corded. Mir. Aldrich said he would call the bill up for consideration on Mon- day. February To-
 MT Aldrich explained that the bill was the Dill of the majority of the commit tee and that members of the minority Inisht nave substitute to offer later. ne also added that his correspondence "i'h the interstate commerce commits sion upon the subject of railroad securl- ties would be presented as a document MT Bailey said that if the finance com mlttee proposed to submit written re- port on the banking bill he wished to reserve the right of the minority of the committee to do the same hereafter Mr Aldrieh replied it had not been customarv 10 submit written reports in such cases but he expected to explain the measure on behalf of the committee. In that ease NIT Bailey said. 1t would no, be necss sary to reserve the right of any report Amended Bill.
 The various amendments which have been published from time to time annear l Tn the bill although In general char. acter the ofll remains the same as when introduced. There has been an effort on ,le part or the committee to emphasize eie emergency nature of the act that is proposed and to this end various amend ihehts are inserted in the bill which ara intended to cause speedy issuance of auultlonai currency when stringencv oc- CUTS The following amendments are in serted In the first section of the bill in lieu or the provision which gave the comptroller of the currency power to TX the time and amount of issues when application is made. according to his Judgment and at his convenience;
 The comptroller of the currency shall transmit immediately the annlj cation With his recommendation, to the Secretary of the Trea sury, who shah IT In his Judgment business conditions in the locality demand additional cir culation, approve the same and shall determined the time of issue and fx the amount, within the limitations hereinafter imposed. of the additional circulating notes to be issued. In order that the distribution of the notes to be issued under the provisions of this act shall be made as equitab ble as practfca- ble between the various sections of tho country, the Secretary of the Treasur. snail not approve applications from as- sociations in any state in excess of tie amount to which such state would be entitled for the additional notes herein authorized on the basis of proportion which the unimpaired capital and sur plus of the national banking associa- tions in that state bears to the total amount of impaired capital and sur plus of the national banking asso- citations of the United States Provided however, that in case the applications from associations in any state shall not be equal to tn eamount which the associations of such state would pc entitled to under this method of dis tribution, the Secretary of the Treas ury may, in discretion. to meet an emergency, assign the amount not thus applied for to any applying asso- citation or associations in states in the same section of the country"
 Railroad Bond Clause.
 The clause of the original bill fixing 75 per cent of the market value of all municipal and railway bonds as the limit of the issue of notes against them had haAf al an f1ot bonds alone are to be taken at 75 per cent of their market value. Notes may be issued against deposits of muni- cipal and county bonds up to 90 per cent of tn cir market value.
 The limit of circulation notes that may be issued under the act has been raised from $250, 900 900 to $500 000, ,00o.
 The section of the bill relating to the acceptance of interest-b airing ob- legations or any legally authorized bonds of states. cities, towns fand counties as deposited for the seeuri- ties for the additional bank security issued against them has been broa H. ened considerably by amendment. Tho words: "Or other legally constituted municipality or district" which have been added, are taken to mean that bonds issued by school districts an1 townships will be acceptable providing they conform to z requirements speci- fled. The popul9/on or tnese munici- palities Is fixed the reported bill at 10000, instead Of 10000 as originally proposed.
 Secretarys Duty.
 There is an amendment making it the duty of the Secretary of the Treasury to obtain information with reference to thu value and character of the municipal and railroad bonds to be accepted under the provisions of the act, and he is required from time to time to furnish information to national banking associations as to such bonds as would be acceptable curity. To the end that information con corning railroad bonds may be gathered with some degree of accuracy the clause of the bill relating to the acceptance of railroad bonds as security for note issues is amended so as to include only the --~--~~~~>>>~----~-~-- ~----~~~~~>~~~~~>
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