The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-02-26
INTRODUCED BY
JAMES k. JONES
Essential Principle of AIdrich
Bill Offered in Senate
in 1900,
SENATOR OWENS SPEECH
UNITED STATES NOTES FOR
EMERGENCY USE.

Washington, Feb. 25.-Declaring that
he was in favor of a bonG-secured
emergency currency under an interest
charge high enough to compel auto
matte contraction of such issue, Sen
ator Robert L. owen of Oklahoma pro-
ceeded to criticise many features of the
Aldrich currency bill in the senate to-
day.
Mr.. Owen desired a more complete
remedy than that proposed in the COM
mittee bill.
He did not believe in combining the
benefits of the issuance of emergency
currency to national banks The pro-
visions for using railroad bonds for the
basis of these emergency notes he con-
demned strongly. but said he would feel
compelled to vote for the measure ex-
cept its railroad bond feature, if his
proposed amendments should not be
adopted. The only principle of the
committee bill which he regarded as of
value, was that relating to emergency
notes, secured by bonds. under penal
ty higher than the normal rate of in
terest.
Originated the Idea.
'T call his attention" he said, re-
ferring to Mr.. Aldrich, Ito the fact that
he has adopted the essential principle
which was contained in an amendment
which / had the honor to draft. and
which was introduced in the United
States senate on Feb. s, 1900, by James
K. Jones, and which was proposed as
an amendment to the financial bill now
in charge of the senator from Rhode
Island, then, as now, chairman of the
finance committee"
That amendment, said Mr.. Owen.
contained the very essential features of
the pending currency bill. 1t provided
that any citizen could obtair emergen-
cy notes upon security of bonds, and
compelled the return of the notes with
in twelve months, and did not limit
the amount that might be issued. When
that amendment was proposed in 1900,
he said, the chairman of the commit
tee on finance was in position to have
written into the statutes of the United
States ''the very safeguards which he
now declares essential"
United States to Issue Notes.
He condemned the provision of the
Aldrich bill providing for the proper
tOnal issue OF emergency currency
among the several sections of the coun-
try, as one section might be in dire me-
cessity for such currency and the re-
mainder might not want it at all.
Referring to his proposed substitute
for the Aldrich bill, Mr.. Owen said it
proposed United States notes for emer-
gency use instead of bank notes, and
provides for their instant issue. It
allows all national, state or savings
banks and trust companies putting up
the necessary security to use them. 1t
provides that United States notes may
be used as security, but strikes out
railroad bonds. 1t does not limit the
quantity of emergency notes that may
be issued. 1t requires a tax of s per
cent on the emergency currency during
the first four months, and s per cent
thereafter. IT prevents active officers
of banks from borrowing their funds
except under safeguard. The use of
deposits for speculative buying of
stocks, bonds, etc, is prohibited. Bank
reserves against federal deposits are re-
quired, and other changes are made in
conditions governing reserves.