Los Angeles herald., 1908-03-26
AMENDMENTS
TO ALDRICH
BILL KILLED
ONLY COMMITTEES CHANGES
ACCEPTED
Considerable Progress Made In Senate
Toward Disposlng of Numerous
Alterations of Currency
Measure

Ry Associated Press
WASHINGTON, March 25.-A good
deal of progress was made by the SEN
ate today in disposing of the proposed
amendments to the Aldrich currency
bill. 1t was evident throughout the
session that the bill will be perfected
in the form approved by the finance
committee, as no proposition that failed
to receive the sanction OF the commit
tee received any substantial support.
The amendments reported by the
committee were all adopted without
opposition, and then one senator after
another offered additional amend
ments, which, except in the case OF one
proposed by Senator Dupont and one
by Senator Lodge, were voted down.
Senator Dupont's amendment pro-
vided that during the first SIX months
the emergency currency Is out inter-
est shall be paid at the rate or one
half of one per cent per month. and
after six months at the rate of three
quarters of one per cent per month.
MIR. Aldrich said this amendment
would be accepted by the committee
and 1T was agreed to-
The amendment by Mr.. Lodge ad-
mitted bonds of the insular govern
ment of Porto Rico as basis for the
emergency currency.
Several amendments were proposed
and laid aside upon the statement py
Mr.. Aldrich that the committee Wouiu
take them up and report to the senate
tomorrow, Among these were the
amendments offered by Mr.. Lodge Tor
the scceptance of bonds of the Phillp-
mines and the city of Manila among
the securities for the issuance OF
emergency currency; by Senator Nei-
son, for the payment or interest," az
not less than one-half on deposits OF
n,,blic money in national banks, also
nv Mr.. Nelson repeating sections or the
law giving credit to national banks
for parts of their reserve deposits IN
other banks.
AIdrich Promises
Senator Aldrich promised that the
committee would take up all amend
ments relating to BANK reserves anu
report tomorrow.
An amendment by Mr.. Hepburn re-
ouiring national banks to keep on
hand not less than is per cent OF thelr
deposits as a reserve fund was de-
feated. So to 2.
Senator Nelson offered an amend
nent which was voted down, allowing
banks to make loans on farm mort
cages. .4o
ment relative to the appointment OF
monetary commission. He SPOKE IN
response to question from Senator
owen, saying:
"It is apparent to me that recent
events have shown an absolute neces-
sity for taking up this question IN a.
legislative way, and the preparation
for that will be entered upon III the
immediate future
Al tho amendnents were discussed
at length. but in the main the debate
was along lines which have been ira
versed during the general discussion
of the bill. There were, however,
some exceptions. and one of these oc-
curred i'm connection with Mr. McLaur
in's amendment. The discussion served
10 bring out a statement by Mr. Al
drich regarding the security ailoroeu
under the terms of the bill.
Mr.. Aldrich said he would never con-
sent to taking away safeguards OF ma
tional banknotes which had existed py
act of congress for forty years, a gov
ornnent preference having existed Tor
more than a century.
Replying to question by Mr.. NC
Iaurin, Mr.. Aldrich said that while 1t
was true the governments guarantee
would he great. vet various cumulative
guarantees had been thrown about the
currency in order that absolute conf
dence in it might prevail, and he
would not vote to remove any one OF
them. He remembered when the Sc
curities of the United States were not
at par. In any event. he said, the
double liability of stockholders OF the
banks was the guarantee that the de-
Dositors would never lose anything on
account of the governments prior
claim.
Philippine Bends
While the question of accepting Phil
inpine bonds as security was under
consideration Senator Teller spoke in
opposition to the proposition. basing
his objection on the ground that there
would be no means of determining
their value, and in this connection
smoke somewhat of the relations of the
Philippine islands to the United States.
saying:
will tie that country to this. want to
see the islands cut loose from this
country. If we have war with Ja-
nan we will not have trouble with
them, as Japan would walk In and
take them"
Replying, Mr.. Lodge argued that
congress should not discredit bonds is
sued on it's authority. He contended
that the bonds were practically SINH
lar to state and municipal bonds In
this country, which are now accept
able to government deposits of money
in the banks. Mr.. Nelson's amend
ment providing that national banks
should be authorized to loan upon farm
mortgages led Senator Aldrich to de-
clare that for bank purposes the farm
mortgages were the last thing that
ought to be accomplished.
Suppose the banks of the country
had been loaded down with farm
mortgages during the recent current
stringency,'' said Mr.. Aldrich, the
suspension which was temporary would
have been absolutely permanent. 1t is
no part of the business of banks to
accept farm mortgages. There. is no
civilized country in which banks are
permitted to take farm mortgages.
They are inconvertible securities.