The sun., 1908-03-28
SENATE PASSES ALDUICH BILL.
FIVE REPUBLIC4NS TOTE No
AND THREE DEMOCRATS AYE.
II Was Announced That II Senators naeon
aud Daniel Had Been Present They
Would Have Voted for It-ImpeFtaas
Amendments Accepted and Adopted.

WASHINGTON, March 27-The Aldrioh
financial bill TO provide for an emergency
issue Of taxed currency notes In time %
money stnngency was passed by the Senate
at 625 O'Clock this evening by a ayes 70
10 noes In substance 1t authorizes national
banks TO issue such notes on depositlnR
collateral Of United States or State bonds
or the bonds Of certain described counties
and municipalities these notes to be subject
to a progressive tax which will compel
the banks to withdraw the notes from cir-
culation when the emergency has passed
Before the final vote Senator Teller. act
ing for Senator Bailey, who was abssnt,
| proposed the Democratic substitute for
the bill and when this was voted down
offered as an amendment the salient feature
Of the Bailey BILL which provided that the
Government and not the banks should issus
the emergency currency. Both bill and
amendment we're defeated by strict party
votes. La Toilette and all the Republoau
radicals voting with their political assoT
ciates
Then Mr. Teller said that he intended 10
vote for the Aldrich bill and Mr. Johnston.
the new Senator from Alabama, did like
wise, Each said the bill was unsatisfactory,
but was the best that could be- obtained 10
the circumstances On the final vote Mr..
Owen Of Oklahoma, one Of the most radio;E
Democrats in the Senate. who had pro-
posed several far reaching amendments.
joined Teller and Johnston His position
was that while the bill was unsatisfactory
measure to provide an emergency cur
rency was necessary and he felt obliged to
vote for it.
The Republicans who voted against the
bill we're Borah. Bourne. Brown. Hepburn
and La Toilette. all Of whom except Hey.
burn have shown radical opposition to L.
The final vote In detail follows:
For the bill-Republicans: Aldrich, Anksny,
Beverdge, Brandagee, Burkett. Burnham.
Burrows, Crane, Cullom, Carter. DepsW,
Dick. Dillingham;, Dixon. Dover. Du Pont,
Elkins, Flint, Frye. Gallinger. Gamble, 0uG-
genhelm, Hopkins. Kean, Knox. Lodge, Long,
McCumber. Nelson. Perkins, Piles. Richard
son. Smith Of Michigan, Smoot. Stephenson.
Sutherland, Warner. Warren and wetmore.
Democrats: Johnston. owen and Teller
Against the bi-Republicans: Borah,
Bourne. Brown. Hepburn and La FollettA
Democrats Bankhead. Clay. Culbsrson. GarY,
Gore. McCreary. McEnery. McLaurin. Owes
man. Paynter and Taylor.
1t was announced that II Messrs. Bacon
and daniel Demoorats) had been present
they would have voted for the bill. II was
announced also in behalf Of absent RepubH-
cans that they would have voted for H.
One Of the important amendments
adopted to-day was proposed by Mr.. john
ston Of Alabama II provided that national
banks required 10 hold Is per cent. in re-
serves should hold four-hfths Of these
reserves in their own vaults and that one
third Of the amount 30 held might be In
the securities enumerated In the bill Mr..
Aldrich accepted this amendment.
Still another important amendment
offered by Mr.. La Toilette and accepted by
Chairman Aldrich forbds loans or dis
counts being made TO officers Of q banh
or TO corporations In which an ofi1cer Of the
bank making the loan holds a majority Of
stock, and that where loans are made 20
corporations in which an oflcer Of the
bank making the loan holds a minority Of
stock. such loans may be made only after
meeting Of the directors approves. A
penalty Of from one 10 five years imprison-
ment is provided for violation Of this pro.
vision.
When this amendment was offered Mr..
La Toilette had the clerk read Newspaper
i'll tkaNt . ~ N.N I n. 30 NJ
York was organizing trust company TO takN
care Of its securities. He pointed TO this a.
an argument in favor Of his amendment.
An amendment OF Mr., La Toilette, direct
ing the Comptroller Of the Currency to verify
the monthly reports required by the bill Of
the amount Of emergency notes outstanding,
was accepted by Mr.. Aldnoh.
The Aldrlch bill will now 60 to the Houss.
1t is the opinion Of leaders that In spite OF
marked opposition among tho Represanta-
tives measure substantially along the linee
Of the Adrich measure will become Law.
Mr.. Johnston Of Alabama offered an
amendment which was approved by the
Finance Committee, which made all banka
outside Of reserve cities keep four-hfths
OF their 10 per cent reserve at home, but
which permitted one-third Of the four-ffthsl
TO be In the form Of securities declared
good against emergency circulation.
MIR. Gore OF Oklahoma offered al ssissssssSiSss=
ment to include, besides securities, cotton
warehouse receipts or grain elevator re-
celpts not to exceed rs per cent. Of the face
value OF the receipt on the products repre-
sented Mr.. Cores proposal was rejected.
Mr.. Culberson offered an amendment 10
Mr., Johnston's amendment which was TO
strike out clause that would leave the
in such shape that all banks
would be required TO keep ell Of their re-
serve. whether 1t was IS per cent. or 7S per
cent. at home and in good and lawful
money.
Mr.. Aldrich told the Senate that he was
sure it could not adopt any such proposal
He could think Of no greater misfortune
that could befall the country than what
might follow such provision Of law. II
was impraoticable and its adoption would
cause greater distress than the late panic.
1t was not possible to keep reserves in law
ful money. and the question was whether the
gentleman from Texas wanted the money
Of the country banks kept at home or sent
to the large cities for use. II he wanted it
kept at home, the provision allowing them
to keep securities, approved by the Govern
ment aspart Of the reserve, was wise. These
securities would be Immediately convertible
into money at any Sub-Treasury Of the
United States.
l. T.,V. Z. !. IL