New-York tribune., 1908-03-28

RE3HERIDcE. JOHNSTON ,Dem).
ERANpEGEE. kEaN kEaN
ErRSEAM H0DGE
6RkS9 McGMRER
cTRTIs oMEN OWES epen).
nIIHIxGHAN. RIcHARnso~.
p. PolFdyER FdyE sNfefTFxsox sMo9T
ELKINs. SUTHERLAND
FLINT. TELLER DEM.
GsMBLE WETMoRE
F.SkHE.n. HEYBURN rep.
BOEAH fR-pe, IA FoLLETTE tRepb.
BOURNE CR-po. MCREARY
RRoEN Hf2f' 'Er,fss6s s6sD'' M-fHER1x. MEkERr
rRazfER 9yERMAN.
6R $oRE TATLoR-
The Bailey substitute authorizing the gov
e-n-nent. instead Of the national banks. TO issue
emergency circulation. was defeated a. 10 13,
this vote being strictly partisan, even Senator
"a Folletre acting with the Republicans An
Interesting feature Of the proceedings was a
re5-e-a-ion BY Nj. Aldrich Of his promise 10
h-inr in q bill for investigation Of the entire
banking system OF the country. with a view to
institgting reforms.
AS passed. the bill provides for not more
.han $500. .000. 600 Of emergency currency TO he
issued 70 national banks upon deposit by them
n state. county and municipal bonds TO be ap-
currency il 70 be issued with a view 10 securing
an equitable distribution over the United States
and n accordance with the unimpaired capital
and surplus Of banks II each state Banks are
fa pay for this emergency circulation one-haf
q / 3er cent 4 month during the first four
months Il Is circulated and afterward three
quarters Of per cent q month National banks
shall pay not less than l per cent govern
-nent funds deposited with them
As amended to-day the bill carries an i'm
Tor1ant change in banking laws relating 70 bank
reserves. This amendment provides that OF the
: Per cent reserve required 10 be kept by banks
Tot II reserve cities four-ffths is 70 be kept in
rne 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
to-day the period during which one-haf Of
re- cent interest is 10 be charged was reduced
from SIX 70 four months, after which three
quarters Of l per cent is 10 he charged until
redeemed.
Al the instance OF AIr La Toilette an amend
merit Vas adopted prohibiting any national
bank from investing its funds in stocks or other
securities Of q corporation the officers or di-
rec-crs OF which are officers directors Of the
hank. and providing q penalty Of imprisonment
of from ore 20 five years In accepting this
amendment Mr.. Aldrich said that he had not
time 10 consider the amendment fully, but was
II sympathy with lis general purpose He said
j. could be perfected in conference The propo-
si-tc-1 u insert q provision for government
guarantee Of deposits in national banks vas
the subject OF an extended debate, and vas de-
feete5 by : vote OF II 70 -. most OF the Demo-
cratic vote being against the proposed amend
mert
BAILEY'S SUBSTITUTE BEATEN
Senator Teller offered. on request of Senator
-7o
-urs currency bill Of the Senator from Texas.
which he said vas in the main similar 10 the
Ai6-ich bill with the difference that il pro-
.55ed for government instead Of bank paper,
ard asked for & rollcau. The vote was l3 10 a.
against the bill.
The following is the text Of important amend
-lercs 10 the bill which were adopted to-day:
p Senator Johnston Of Alabama:
That after January l. 1909 national banking
associations located outside Of reserve or cen
rraf reserve cities. which are now required pE
law 70 keep q reserve equal 70 % per cent OF
thei- deposit liabilities shall hold in their own
vaults feur-ffths OF such reserve, either IN law
ful money as now required by law or n the Sc
CG-irieS enumerated in Section o. TINS act
which shall have been approved by the Secre-
1arz Of rhe Treasury provided, however. that
rot more than one-Ihrd Of the reserves Te-
CURED 10 be kept in the vaults Of such assoeia-
Tigns shall pc held II such securities.
b Senator Allison:
Provided that the deposits under this section
- retire notes secured by the deposit OF oohl9
other than bonds Of the United States shah not
he covered into the Treasury as required ny
Section OF an act entitled An Act Directing
the Purchase OF Silver Bullion. etc, approved
July 4 1899 but shall be retained in the Treas
ury fo- the purpose Of redeeming the notes OF
NE bank making sUch CepoS1
B. Senator La Toilette:
No national banking association shall invest
ar pan - its funds or deposits IN 1he StochS
o- securities OF any corporation or association
az Uf the officers or directors or which are Of
foe-s ~ directors Of such banking association
Any officer or director Of any national bsnhlIS
association who knowingly violates or consents
70 re violation Of the foregoing provision Sflali
b deemed guilty Of q misdeTneanor anc shah
1pcn c0rvictlon thereof in any circuit or dis
t-cr court Of the United States be imprisoned
not le~s rhan one year and not more than i've
wears.
B. Senator La Toilette.
L shall be The duty Of the Controller Of the
Currency 10 cause such reports OF notes IN clT-
cuat1on . De verified BY examination Of the
barA's records and officers OF any banklng as
soclatiCu falsely representing the amount OF us
notes In circulation shall upon con- s Ic'.gL. !t5a
thereof n any Circuit District court Of the
United States. be punished by a hne OF fol ItSS
lnan 81 -o00 more than s5.ooo or by ifnprlS
onn1ent for not less than one year ana not more
tna7 fTe years. or by both such me ana li4-
pr1sonnent.
BILLS COURSE IN HOUSE
Republican leaders IN the House were very
reticent to-day about predicting the course 't
the AIarich Dill in that branch Of Congress
Speaker Cannon refrained from making com
merit and some of the chiefs Of the majority
acre equally silent Enough Was gathered
however, 20 justify the prediction with reason