Gilpin observer., 1908-04-02
SENATE PASSES
ALDR|CH BILL
SUBSTITUTE AUTHORIZING GOV.
ERNMENT TO ISSUE EMERoEN.
cY CURRENCY DEFEATED.
NEARLY A PARTY VOTE
GOVERNMENT GUARANTEE OF
DEPOSITS IN NATIONAL
BANKS VOTED DOWN.

Washington-The Aldrich currency
bill was passed by the senate Friday by
= vote OF %2 to 16, in the main a party
vote.
Previous to the taking Of the vote on
the Aldrich bill a vote was taken on the
Bailey substitute. offered by Senator
Teller on request of Senator Bailey of
Texas. who was absent, authorizing the
government instead of the national
banks to issue the emergency currency
Tor which the bill provides. The vote on
the substitute stood AZ to 13 and this
vote was entirely partisan, even Sena-
tor La Toilette casting his vote with
the Republicans
The bill has been before the Senate
since January End. The vote was not
reached until after 6 p. m. and the gal
leries were practically empty.
An Interesting feature of the passage
of the bill was a reiteration by Aldrich
ct his promise to bring in bill for an
Investigation Of the entire banking
system OF the country, with a view to
lnstituting reforms.
As passed. the Aldrich bill provides
for not more than $3.50. 100000 of emer-
gency currency to be issued to national
banks upon the deposit by them of
state. county and municipal bonds to
be approved by the secretary Of the
treasury.
view to securing an equitable distribu-
ton of the currency over the United
States. and in accordance with the un-
impaired capital and surplus Of banks
In each state. Banks are to pay for this
emergency currency circulation one
half Of one per cent. a month during
the first four months it is circulated,
and afterward three-fourths of one per
cent. month.
The bill provides that national banks
shall pay not less than one per cent. on
government funds deposited with them.
As amended the bill carries an i'm
portant change in banking laws relat-
ing to bank reserves. This amendment
provides that of the fifteen per cent
reserve required to be kept by banks
not in reserve cities, four-fifths OF this
- to be kept in the vaults of the banks
and Of that amount one-third can be
in the form of securities OF the kind
required.
By another amendment. which was
agreed to. the period during which one
half of one per cent. interest is to be
Tk6Q Wdb TtuuCeu ITOu1 Blk 10 IOuT
months. after which threefourths OF
one per cent is to be charged until
redeemed
At the instance of Mr.. La Toilette an
amendment was adopted prohibiting
any national bank from investing its
funds in stocks or other securities of
Q corporation the officers or directors
Of which are officers or directors of
the bank. and providing a penalty OF
imprisonment Of from one to five
pears.
The proposition to insert a provis-
ion for a government guarantee Of de-
posits in national banks was the sub
jsct Of an extended debate and was de-
feated by a vote Of IL TO &c. most OF
the Democratic votes being cast
against the proposed amendment.
Another amendment offered by Mr..
La Toilette prohibited loans by a ma
tional bank to its officers or to aI.y cor
poration the majority stock OF which
is owned by the officers OF the bank
1t was rejected. as was also an amend.
ment offered by Mr.. Nelson (Minne
sota). providing that no officer or en-
ploye OF national bank shall be a
member OF a stock exchange, or en-
gagged in buying or selling stock or
bonds on a commission basis.
Before the vote was taken on the
Aldr1ch bill Senator Teller explained
his reasons for voting for the meas.
ure.