New-York tribune., 1908-02-20
TO AMEND ALDRICH BILL
Senator Johnston's Suggestion Com
mends Itself to Sponsor of Measure.
rrrom The Tribune Bureau. ]

Washington Feb. Ex-senator Johnston. of Ala
bama made a speech In the Senate to-day on the
Aldrich bill, in the course Of which be onefeo an
amendment providing that the banks IN nonr reserve
cities shall be required maintain reserves OF
not less than Is per cent of which 10 per GEM
shall be retained IN their vaults. or WHICH d'
least half must be in gold or lawful money Alo
the other half may consist of the securities which.
under Section , Of the AIdrch bill. are prescrloeo
as the basis for emergency currency
Under the existing law the banks IN noh-rese''e
cities are required to maintain reserve OF 10 pei
cent but need retain only per cent IN their own
vaults. The Aldrch BILL as originally hntfooueeu
provided that hereafter banks must retain ~ pei
cent that<fs to say two-thirds OF their reserves
in their own vaults. This was stricken OUT IN col
mttee because OF the opposition OF the mlilorit''
led nv Senator Talaferro OF Florida Mr. rama
ferro Indicated to-day. however that he "ouio hot
oppose the Johnston amendment.
II ia entirely likely that Senator Aldr1ch, VINO Is
in charge of the bill which bears his name VIII
accept the Johnston amendment. as II appeals 10
the Senator from Rhode Island as Wise eslslatoii
Were the banks permitted TO retain one-thiro ol
their reserves in the prescribed securities 'heF re-
turn therefrom would be larger-probably per cent
than it is from that portion deposited III the
banks in reserve cities, which they receive only
per cent. The banks would be able to cohvefs
such securities into cash at any time or couid
bvpothecate, them with the Treasury in the event
of an emergency and receive 80 per cent OF tneif
value in national bank currency, so that such a
provision would incentive 10 IIe peIihS "
invest portion their reserves in such securities
There are many Democratic Senators VINO favor
the Johnston amendment, ard its adoption wouio
doubtless result in enlisting considerable Demo
cratic support for the bill
There has been some disposition to critfcise the
reluctance of the Senator from Rhode Island to
press his measure and the disposition of the de-
bate to drag The fact is however. that the Dill Is
gaining strength daily, and Mr. Aldrlch is too wise
q leader press the matter so long as such Is the
@icraf Ia
the more convinced they become that TINS Is the
only remedial financial legislation which can De
enacted at this session and the less willing are they
to assume the risk of adjourning without enact1ng
anv measure which would serve to obvlate such a
stringency as the country has recently experienced
Senator Nelson will before long speak III support
of his amendment requiring that the government
guarantee the deposits in all national banks an
amendment which may find some support among
Reuublican Senators Senator Paynter, OF Ken
tuckv on the other hand will speak against the
amendment as under the constitution or MS state
similar legislation could not be enacted In favor Oh
the state banks and were the government 10 'd>o
such action concerning national banks Ine stdte
hanks would be driven out of existence 1heFe Is
considerable opposition TO this amendment on tue
minority side and although some Senators may
s,.nnort it out of compliment to Mr.. Bryan 1t 10
o,,h+ful If there Is corporals guard Wnich taVors
II