Los Angeles herald., 1908-01-31
BILL
is REPORTED
RETURNS FROM COMMITTEE IN
AccELERATlVE FORM
AMENDMENTS URGE EMERGENCY
OF MEASURE
Limit Of Circulating Notes Raised to
$500, 900, o,oo0-smaIler Banks
Omitted in Reserve
Requirement

BY Associated Press
j WASHINGTON, Jan. 80.-The AL
drich financial bill, which has been In
the hands of the committee on finance
since its introduction in the senate on
January T. was reported today py
Senator Aldrich.
Tie various amendments which have
been published from time TO time ap,
pear in the bill, although in/general
lcharacter the bill remains the same as
when introduced.
There has been an effort on the part
of the committee to emphasize the
emergency nature of the act that is
proposed, and to this end various
| amendments are inserted In the bill
which are intended to cause the speedy
| issuance of additional currency wnen
a stringency occurs.
| The following amendment is in
| serted in the first section of the bill
in lieu of the provision which gave the
| comptroller of the currency power to
fix the time and amount of issues
when application is made, according 10
| his Judgment and at his convenience:
1.-THE comptroller of the currency
/ shall transmit Immediately the appli-
| cation, with his recommendation, to
| the secretary of the treasury, who
shall, IL in his judgment business con-
ditions in the locality demand addi-
.tional circulation, approve the same
and determine the time of issue and
fix the amount within the limitations
hereinafter imposed of the additional
circulation notes to be issued.
Equitable Distribution
'Tn order that the distribution of
notes to be issued under the provis-
| ions of this act shall be made as
equitable as practicable between the
various sections of the country the
| secretary of the treasury shall not ap-
prove applications from associations
] in any state in excess of the amount
to which such state would be entitled
of the additional notes herein author
! lied on the basis of the proportion
which the unimpaired capital and sur
plus of the national banking associa-
| tions in such state bears to the total
amount of unimpaired capital and sur
plus of the national banking associa- :
| tions of the United States.
Provided, however, that in case the
applications from associations in any
state shall not be equal to the amount
which the associations of such state
would be entitled to under this method
of distribution, the secretary OF the
| treasury may, in his discretion TO
meet an emergency assign the amount
thus applied for to any applying as
sociation or associations in the states
in the same sections of the country"
Clause Amended
The clause of the original bill fixing
rs per cent of the market value of all
municipal and railway bonds as the
| limit of the issue of notes against
them has been amended so that rail-
road bonds alone are TO be taken at
rs per cent of their market value
| Notes may be issued against deposits
| or rfatnfnFnu1 and county 6On6G to
80 per cent of their market value.
| The limit of circulating notes that
may be issued under the act has been
raised from $3.50, 100000 to $500,0O0,0O0.
The section of the bill relating to
the acceptance OF interest-bearing OBJ
legations or any legally authorized
bonds of states, cities, towns and coun-
ties as deposits for the security of adj
ditional bank currency issued TO them
has been reduced considerably in the
amendment. The words "or other le-
gally constituted municipality or dis
trict" which have been added, are
| taken to mean that bonds issued by
school districts and townships will be
acceptable providing they conform TO
| the requirements specified. The popu-
lation of these municipalities Is fixed
by the reported bill at 10000 instead of
20, 900 as originally proposed.
There is an amendment making 1t
| Lne QuIy Oh lIlc NcCAGNdAJ Va tiiN NACoe
ury TO obtain information with refer
ence to the value and character of the
| municipal and railroad securities au-
| thorized to be accepted under the pro-
visions OF the act, and he is required
] from time to time to furnish inforna-
| tion to national banking associations
and to such banks as will be accepta~
BILE as security, to the end that infor-
nation concerning railroad bonds may
be gathered with some degree of ac-
curacy.
Bonds as Security
The clause of the bill relating to the
acceptance of railroad bonds as secu-
rity for note issues is amended so as
to include only the bonds of roads
(which comply with the existing law IN
reporting statements OF their. condi-
tion and earnings to the interstate
commerce commission.
The provision in the old bill requir-
ing q memorandum on the back or
each bond showing that the legal title
of the same has passed to the treas
urer of the United States in trust has
been stricken out and it has been
made the duty of the secretary of the
treasury to prescribe regulations for
conveying title.
The provision of the original bill re-
lating to the proportion of the 'circu-
lating notes in bank to an amount
GQudl TO OU per NEiA VI NhS NoPAtoA
stock of a bank requiring an issuance
has been changed so that it Is man
datory on the comptroller to proceed
as soon as practicable to prepare notes
for all national banks so that they may
be ready for issue Immediately upon
the receipt of applications and after
securities have been approved,
Reserves Not Mentioned
In the bill as reported there is no
meLtion Of the reserves of banks To-
Gated outside of reserve or central
cities, In the original bill it was re-
uufred that they should hereafter hold
at all times at least two-thirds OF
their reserve in lawful money
1t is specifically provided that all
acts and orders of the comptroller OF
the treasury and the treasurer of the
United States authroized by the act
shall have the approval of the secre-
tary of the treasury.
Mr.. Aldrich said ho would call the
bill UP for amendment on Monday
February TO-
Mr.. Aldrich said he made the an
nouncement as to the time so that
the senate might have ample oppor-
/ tunity to prepare for the discussion OF
the BILL He said that the committee
had under consideration certain
amendments relating to railroad bonds
and probably would suggest them al
a later day. He explained that the
bill was the bill of the majority of the
committee and that members of the
minority might have substitute e