The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1908-01-30
ALDRICH BILL
REPORTED TO
SENATE
Emergency Features Of Act
Emphasized by Several
Amendments.

WASHINGTON, Jan. 30.-The Aldrict
financial bill, which has been in the
hands of the committee on finance since
its introduction in the Senate on Ian
uary Z, was reported today by Senator
Aidrich. The various amendments
which have been published from time
to time appear in the bill, although in
general character the bill remains the
same as when introduced.
There has been an effort on the part
Of the committee to emphasize the
emergency nature of the act that is
proposed, and to this end various
amendments are inserted in the bill
which are intended to cause speedy is
suance of additional currency when a
stringency ccurs
The following amendment is inserted
in the first section of the bill in lieu
of the provision which gave the Comp
troller of the Currency power to fix the
time and amount of issues, when APP
p~lication is made, according to his
judgment and at his convenience:
The Comptroller Of the Currency
snail transmit lmmeulalely the uppll-
cation with his recommendation to the
Secretary of the Treasury, who shall,
II In his Judgment business conditions
in the locality demand additional cir
culation, approve the same and shall de-
termine the time of issue and fix the
amount, within the limitations herein
after imposed, of the additional circu-
lating notes to be issued. \
I'm order that the distribution OF
notes to be issued under the provisions
Of this act shall be made as equitable
RS practicable between the various Sec
ions of the country, the Secretary of
the Treasury shall not approve appli-
cations from associations in any State
in excess of the amount to which sucil
State would be entitled of the addi-
tional notes herein authorized On the
basis OF the proportion which the I'M
impaired capital and surplus of the ma
tional banking associations in sucn
State bears to the total amount OF I'M
impaired capital and surplus of the ma
tional banking associations of the
United States;
Provided, however, that in case the
applications from associations in any
State shall not be equal to the amount
which the associations OF such State
would be entitled to under this method
Of distribution, the Secretary OF thu
Treasury may in his discretion, to meet
an emergency, assign the amount not
thus applied for to any applying asso-
citation or associations in States iu the
same section of the country"
The clause of the original bill fixing
IS per cent. of the market value of all
municipal and railway bonds as the
limit of the issue of notes against them
has been amended SO that railroad
bonds alone are to be taken at 70 per
cent. of their market value. Notes may
be issued against deposits of municipal
and county bonds up to 80 per cent. OF
their market value.
The limit of circulating notes that
may be issued under the act has been
raised from $3.50, 000, 900 to $500, 000, 900.
The section of the bill relating to the
acceptance of nterest-bearing obliga-
tons or any legally authorized bonds
of States, cities, towns and counties
as deposits for the security of ad-
ditional bank currency issued against
them has been broadencd considerably
by amendment. The words: "Or other
legally constituted municipality or dis
trict," which have been added, are
taken to mean that bonds issued by
school districts and townships will be
acceptable, providing they conform to
requirements specified.