Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-03-28
ALDR|cH BILL PASSED
Senate Adopts Measure by
s az to is.
MAINLY A PARTISAN VOTE
Bailey's Substitute Defeated by
AZ to 10.
DEPOSIT GUARANTEE REJECTED
Leaders Reticent About
Predicting the Course of the
Measure in the House.
MAINLY A PARTISAN VOTE
DEPOSIT GUARANTEE REJECTED

| The Aldrich currency bill was passed by
the Senate yesterday afternoon by vote
| of AZ to 16, in the main party vote
| Prior to- the taking of the vote on the
Aldrich bill vote was taken on the
Bailey substitute, authorizing the gov
errment, instead of the national banks, to
issue the emergency circulation for which
the bill provides. The vote on the sub
stitute stood ~ to 49, and this vote was
entirely partisan. even Senator La Toilette
casting his vote with the republicans.
The bill has been before the Senate since
January 8 The vote was not reached
until after pm. and the galleries were
practically empty.
Following was the vote on the passage
Of the bill:
Yeas-Aldrich, Ankeny. Beverage, Bran
degee. Burkett, Durham Burrows, Crane.
Cullom, Curtis. Depew. Dick, Dillingham;.
Dixon, Dolliver, du Pont. Elkins, Flint,
Frye. Gallinger Gamble, Guggenheim.
Hopkins Johnston (dem), Kean, Knox.
Lodge, Long. McCumber, Nelson, Owen
(dem.). Perkins. Piles, Richardson. Smith
of Michigan. Smoot, Stephenson. Suth-
erland, Teller (dem) Warner. Warren
and Wetmore. Total, AZ.
Nays-Bankhead, Borah (rep), Bourne
(rep), Brown GeP. Culberson. Frazier,
Gary. Gore, Hepburn rep). La Toilette
Tep). McCreary, McEnery. McLaurin.
Overman, Paynter and Taylor. Total. IS.
An interesting feature of the passage
of the bill was reiteration by Mr..
Aldrich of his promise to bring in a
bill for an investigation of the entire
banking system Of the country, with a
view to instituting reforms.
Provisions of the Bill.
AS passed the bill provides for not more
than $500, 100000 of emergency currency
to be issued to national banks upon the
deposit by them of state, county and mu-
nicipal bonds to be approved by the Sec
rotary of the Treasury. The currency Is
to be issued with view of securing an
equita able distribution of the currency over
the United States. and in accordance with
the unimpaired capital and surplus OF
banks in each state. Banks are to pay
for this emergency circulation OF
per cent a month during the first four
months 1t Is circulated and afterWard y
of per cent a month.
The bill provides that national banks
government funds deposited with them.
AS amended the bill carries an important
change In banking laws relating to bank
reserves. The amendment provides that
kept by banks not in reserve cities four
tifths is to be kept in the vaults of the
banks, and of that amount one-third can
be In the form of securities of the kind
required.
BY another amendment agreed to the
period during which y of 1 Fer cent in
six to four months. after which u of 1
per cent is to be charged until redeemed.
At the instance Of Mr.. La Toilette an
amendment was adopted prohibiting any
stock or other securities of a corpora
ton. the officers or directors of which are
officers or directors of the bank, and pro-
vidmg a penalty Of Imprisonment of from
one to five years. In accepting this
amendment Mr. Aldrich stated that he
had not time to consider the amendment
erai purpose. He SAID it could be per
fected in conference.
Government Guarantee Defeated.
The proposition to insert provision for
government guarantee of deposits in ma
tional banks was the subject of an ex-
tended debate, and was defeated by a
vote of IL to 46. most of the democratic
votes being cast against the proposed
amendment.
Another amendment offered by Mr. La
Toilette prohibited loans by national
the majority stock of which is owned by
the officers of the banks 1t was rejected
as also was an amendment offered by Mr.
Nelson of Minnesota providing that no
officer or employe of a national bank shall
be a member Of a stock exchange or en-
gagged in buying or selling stocks or bonds
on q commission basis
An amendment by Mr. La Toilette to
punish by from one to five years i'm
prisonment any Justification In bank Sc
curities was adopted but was protested
against by Senator Knox as already pro-
vIded for by existing law.
Senator Teller offered on request of
Senator Bailey of Texas, who was alb
senator from Texas. which, he stated, was
in the main similar to the Aldrich bill,
with the difference that it provided for
government instead of bank paper and
asked for a roll call. The vote, was IL
to ~ against the bill.
Important Amendments Adopted.
Following is the text of important
amendments to the bill which were
adopted:
By Senator Johnston of Alabama-"Jan-
uary L. 1909, national banking associa-
tons located outside of reserve or central
reserve cities. which are now required
by law to keep a reserve equal to ID per
cent of their deposit liabilities. shall he re-
after hold in their own valus four-fifths
of such reserves. either in lawful money
as now required by law or in the securi-
ties enumerated in section of this act.
which shall have been approved by the
Secretary OF the treasury: PROVIDED,
however, that not more than one-third
of the reserves required to be kept in
the vaults of such associations shall be
held in such securities"
| BY Senator Allison" Provided that the
deposits under this section to retire notes
secured by the deposit of bonds other
than bonds of the United States shall
not be covered into the Treasury, as re-
quired by section of an act entitled
An act directing the purchase of silver
bullion. etc. approved July IA, 1890. but
shall be retained In the Treasury for the
purpose of redeeming the notes OF the
bank making such deposit"
| BY Senator La Follette-"NO ma
| tional banking association shall in
vest any of its funds or deposits in the
stocks or the securities of any corporation
or association. any Of the officers or di.
rectors of which are officers or directors
of such banking association. Any officer or
director Of any national banking assocla-
ton who knowingly violates or consents
to the violation of the foregoing provision