Daily Arizona silver belt., 1908-03-29
Important Amendments Are Added Before Final Passage of the Currency Measure.
IMPORTANT CHANGE
 IN BANKING LAWS
AIdrich Promises Bill to Investi- gate Banking Conditions; Speculation as to What Will Happen in the House,

WASHINGTON, March 27.-The senated devoted its entire session today to consideration of the Aldrich cur rency bill and after further amending the measure, it was passed by vote of 42 to l6
 The bill was passed in the main by a party vote. Previous to taking the vote on the Aldrich bill, vote was taken on the Bailey substitute author izing tho government, instead of nation al banks, to issue emergency circula- tion for which the bill provides. The vote on the substitute stood 42 to l3, the vote being entirely partisan, even Senator La Toilette casting his vote with the Republicans. The bill has been before the senate since January 9.
 An interesting feature of the passage of the bill was the reiteration by AL drich of his promise to bring in bill for the investigation of the entire bank ing system of the country, with the view of instituting reforms.
 What Bill Provides.
 As passed, the Aldrich bill provides for not more than five hundred million in emergency currency to be issued to national banks upon deposit by them of state. county or municipal bonds to be approved by the secretary of the treasury. The currency is to be issued with the view of securing an equable of currency over the United States in accordance with the unim- paired capital surplus of the banks of each state, tho banks to pay for this emergency circulation, one-half of one per cent a month during the first four months circulated and afterwards three quarters of one per cent q month. The bill provides that national banks shall pay not less than one per cent for gov ernment funds deposited with them.
 As amended today, the bill carries an important change in the banking laws relating to bank reserves. The amend. ment provides that fifteen per cent reserve is required to be kept by banks, not in reserve cities, and four fifths of this to be kept in the vaults of the banks Of that amount, one third can be in the form of securities of the kind required.
 Timo Cut Down.
 By another amendment agreed to to- day, the period during which the one half of one per cent interest is to be charged, is reduced from six to four after which three-fourths of one per cent will be charged until re- deemed.
 At the instance of La Toilette an was adopted prohibiting any national bank from investing its funds in stocks and other securities of cor poration, the officers and directors of which are officers or directors of the bank and providing for a penalty of of from one to five years. In accepting the amendment, Aldrich stated that he had not time to con. slider the amendment fnlly, but was in sympathy with its general purpose He said it could be perfected in confer ence. The proposition to insert pro- vision that the government guarantee deposits of national banks, subject which extended the debate, was de- fcated by vote of II to 46, most of tho Democratic vote being against the proposition. T
 Another amendment was offered by La Toilette which prohibited loans by national banks to its officers or to any whose majority stock was owned by the officers of the bank. It was rejected, as was also an amendment by Nelson of Minnesota, providing that no officer or employe of national bank shall be member of a stock ex- change or engaged in buying or selling stocks and bonds on a commission basis.
 House Leaders Mum.
 Republican leaders of the house were very reticent today about predicting the course of the Aldrich bill in that branch of congress. Speaker Cannon refrained from making any comment. Enough was gathered, however, to justify pre- diction with reasonable certainty that when the bill goes to the house from the senate, it will be referred to the on banking and currency, de- spite the current report that jurisdic- tion over it might he given to the com mittee on rules. If the banking and currency committed fails to come to a prompt agreement to report the bill either favorably or adversely, it is like ly that caucus of the Republican members win be called to ascertain the attitude of the majority. If, on the other hand, it is agreed by the caucus to dissect the measure on the floor, the bill will be committed to the commit tec of the whole and discussed under the five minute rule
 Makes It Easier.
 It is generally conceded that the ae. tion of the senate in refusing to adopt the amendment offered by Nelson to provide for federal guaranty of na- tional bank deposits will make it easier to pass the Aldrich bill in the house, where littlc friendlincss toward that feature has developed. Friends of the Aldrich bill in the house will be able to draw for support the open attitude of the president in favor of the bill, and it will not be forgotten by them kk,A t-....