The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-04-14

VxAk Obit 40 p0SScu NY LIt Del
Wv ate, will not be concurre,
in by the House is the con
viction Of many Republican member
OF the lower chamber Indeed. that an.
currency bill will be passed at this ses
sion Is not positively assured. but 4
plans which were matured to-day b,
the Republican leaders in the Hous
are approved by a Republican caucus
to be held next week, probably Tues
day night. the xAldrich bill in al
amended form viii become law.
The Republican leaders have ascer
tanned IN purely informal way tina
with certain amendments the Aldricf
bill can get enough support In thu
IIouee to assure It's passage. and Sen
ator Aldrich, 1t is stated, has Informed
them that the amendments they have
in mind will be satisfactory to the ma
jority in the Senate.
The Committee on Banking and Cur
rency will. however. continue consid-
Grafton of the bill on which hearings
arc now being given House leaders
feel that to discharge the committee
would be taking very serious step.
particularly in view OF the opposition
to the Aldrich bill that has been ex-
pressed by commercial bodies. espe-
c!elly in the West and South: but 1t i5
possible that such step Will be taken.
New Measure Prepared.
To the caucus will be submitted a
new currency bill. drafted by the Re-
publican leaders and presented in the
House to-day by Representative Vrec-
land. OF New York. which embodied
so much of the Aldrich bill as they
feel confident of. and in which Is in
corporated the amendments agreed on.
t,,t OF
ply whether there shall be an amended
Aldrici bill or no financial bill at all.
II the Senate does not enact cur
rency commission bill at once. such a
measure viii he. agreed on by the cau-
Gus and passed by the House.
In support of the no-legislation idea
1t is suggested that such course
would leave the Republican party with.
out incumbrance at the Chicago con-
vention, and enable the free shaping
there of a financial plank.
In the bill introduced to-day by Mr.
vreeland, the Aldrich bill SO far as 1t
appertains 10 the Issuing of currency
on municipal bonds is left unchanged.
The section of the Aldrich bill, whicn
changes the present law of reserves. is
stricken out. This is the section which
has met with the most objection from
the banks, both in the country and in
the reserve cities. The In Toilette
amendment Is stricken out. These sec
tions were eliminated on sAe thGOry
that neither one was necessary to a
purely emergency billion the agree
ment that the bill should be held as
closely as possible to it's purposes Of
providing simply for an emergency
currency; that 1t was not desirable at
this time to go into a revision Of the
banking and currency law. but that
work would be taken up by CONF
mission to be created before Congress
sdjourns.
A section is added to the Aldrch bill
to meet the objection Of Western and
Southern banks that they own no
bonds such as are required for security
under the Aldrich bill: that they don't
feel able to divert their money to the
purchase of such bonds, and that all
Of their funds are required in the needs
of their business. The new section
creates an agency for the handling of
ordinary assets OF banks, including
commercial paper. Under this section
groups of national banks not less than
ten in number, and having an aggre-
gate capital and surplus of at least
$10,000.000, may form voluntary asso-
Citations. to be known as national
clearing house associations" Such an
hoard of directors selected from the
of the banks compos-
ing the group, and shall be organized
and governed according to rules to be
prescribed by the Secretary of the
Treasury.
Any bank belonging to such ap as
ISOLATION may deposit and assign TO
the association in trust such sccuri-
ties. including commercial paper, as
f,p \, ofI
the association. The association may
make application 10 the
Of the Currency in behalf
If the depostting bank for authority to
ssuc additional bank notes to an
lmount not exceeding Is per cent. OF
Lhe cash value of the securities so de-
,osited
The association Is made corpora II
Jon. for the purposes of the act Only.
Jpon failure OF any bank to retire Its
notes, the association can
;ell at public sale the securities depos- |.
tod. II there should be deficlencyl' i
srter the salo. that deficiency is made
|. first lien upon che assets OF the bank
ssuing tho notes. If there should still 1
20 q deficiency, tho assets OF all tho
,anks belonging to the association arc {
made liable in the payment Of the
totes.
All of the other provisions Of the I
lldrich bill are made applicable SO II
ar as they apply to this section. 5
The methods OF existing clearing {
ouse associations are used as far as q
osstble In framing the provisions OF 1T
he Vreeland bin. IT has not been
lousht best to disable existing clear
lg house associations nor to exercise t
overnment control over them,
Criticixe Aldrieh Measure. II
The Aldrlch bill, as passed by the !.
enate. was handled without gloves s
,-day by speakers before tho House Fl,
on Banking and Currency. d
With the execution of Charles c.
lover, presid ent Of the Riggs National T