New-York tribune., 1908-01-21
WORK ON ALDRICH BILL
CHANGES CONSIDERED.
To PreUent Hoarding By Bombs
Committee Nag Gail Bankers
IFrom The Tribune Bureau-I

Washington, JAN 2O.-There is considerable
likelihood that the AIdrich bill. reported 10
the Senate, will be amended so as TO require
banks taking advantage OF the opportunity 10
increase their circulation TO cash checks ard
other obligations with currency when it is de-
nanded or go into the hands Of a receiver one
Senator has advanced the idea that there is al
ways a tendency by national banks TO hoard
their currency in periods OF financial depression
and it is believed that amendment requiring
them to pay out currency on demand VIII nave
the double effect of causing the banks TO obtain
their issues as well to pay them out The
suspension Of cash payments, the Issuance OF
clearing house checks and refusal TO honor the
drafts Of out-of-town correspondents who have
balances to their credit regarded by mem
bers of the Finance Committee detrimental
10 business and it is said by them that the dis
position toward 1eniency on the part of the Con-
troIIer of the Currency has been abused by the
banks.
The opposition of the banks to the Aldricf1
bin and their declarations that they will not
avail themselves Of the privilege Of issuing the
emergency currency for which it provides are
not regarded with much patience by members
OF the Finance Committee. who say they never
intended the bill as a means Of adding to the
profits of the bankers. but designed it to provide
tn. banks with method whereby they could
avoid the steps to which they have resorted in
past periods OF depression.
BANKERS MAY BE SUMMONED.
Il il reported that if the bankers persist in
their opposition to the measure some of them
will be called before the COMMITTEES as wit
nesses, instructed to bring with them their daily
balance sheets, and made TO answer questions
which, it is said. will reveal not only the weak
ness Of the institutions they represent. but any
Jaws in the banking methods they have pur-
sued 1t is intimated that such an inquiry would
reveal methods not generally suspected IL -
also asserted that such a proceeding would de-
naonstrate to the public the dangers to the hnan-
ciaI security Of the nation which would result
from the system of credit currency proposed by
the Bankers Association or provided for in the
Fowler bill
II is said by those who are discussing this
plan that there is no desire 10 do anything likely
10 upset confidence in the banks or ernoarrass
the bankers, but if the bankers persist in their
efforts incite opposition TO the Aldr1ch Dill
the committee will undertake the education OF
the public and seek to prove the accuracy OF
their contention that currency not based on
the soundest securities must cause financial dis
aster.
II Is further asserted by the leaders that no
legislation based on any principle other than
that involved in the Aldrich bill can be passed
at this session That measure, they say. is not
presented as a revolution Of the existing IMAM
ciaI system, but merely as afording means
OF relief in an emergency Il is the only meas
u-e they believe, which can obtain the approval
of a majority Of the two houses. and II II IS re-
+ected there will be no financial legislation 1t is
held that with the Controller Of the Currency
derived OF the discretion he now enjoys con-
cerning banks which do not pay out currency
On demand there would be no hesitation on the
mart Of the banks about availing themselves OF
the privilege Of issuing emergency circulation
If an emergency actually existed H. on the
other hand the existence Of such a statute oper-
atad to promote more careful banking and thus
averted financial stringencies, there would De no
regret on the part OF thesn1en charged WIN the
responsibiIty for making the laws
The Finance Committee discussed the AIdTtch
hill AT its meeting to-day. and. while certain
amendments offered by Senator Taliafsrro were
rejected Mr.. AIdrich showed a disposition to
accept any amendments which would strengthen
the measure One OF Mr.. Taliaferro's amend
n1ents provided that no bank could avail ltsef
of the privilege of issuing emergency currency
until il had drst issued circulation based on
United states bonds equal 10 the full amount
or It's capital. When Mr.. Aldrich pointed out
that the banks could not possibly issue clrcu-
Iation based on consols 70 the full amount OF
their capital because the capital stock or the
hanks. greatly exceeded the public debt OF the
nation. Mr. TaIaferro modified his proposition
10 read 70 per cent Of their capital stock, but
even this was regarded as impracticable by the
members Of the committee. Senator Bailey has
not vet presented his amendment in legal form,
but if he fails to do so the committee will Itself
formulate the amendment. which Is 10 provide
for the geographical distribution OF emergency
issues and make IL a part Of the bill
The clause relating to railroad bonds was
under discussion to-day. Practically all the
Democrats of the committee except Senator Tel
Ter are in favor of eliminating railroads bonds
as security for currency issues
AS it is not desired to report the Aldrich bill
until Secretary Cortelyou's report Treasury
transactions has been received and laid before
the Senate, no further consideration OF the
measure will occur until a week from to-day