The Washington herald., 1908-03-28
CURRENCY MEASURE
PASSED BY SENATE
Continued from Page One.

positors against losses. He submitted fig
ures showing that from 1855 10 1903 the
losses OF depositors in failed banks aver
aged yearly $4,000. A tax Of one-fifth
or one-siXth of l per cent OF the bank
deposits Of that period. he said. WOULD
have made the losses good.
AIdrIeh Opposes Guarantee.
Mr.. Aldrich said the proposed fund
would not have made an imprint on the
last panic. The fund would have had 10
accumulate a hundred years to have paid
the LOSSES 10 depositors last year. He
thought, therefore, no adequate provision
of the kind could be made
Mr.. owen begged 20 inform the chair
man Of the Finance Committee that there
was nothing new in the proposal for a
fund 20 protect bank depositOrs. IL was
simply insurance. and insurance was a
principle that had been written IN the
law, and was not a matter Of speculation
The cause OF pauics was primary fear.
Give the depositors security and there
would be no more boarding OF money in
time OF stringency. Mr.. owen took issue
with the Senator from Rhode Island that
the tax would provide an inadequate fund.
II all the tax were set aside instead OF
enough TO meet the recurrent periods of
panics. and the one danger-that OF fear
would no longer be present.
on a yea and nay vote. Mr. Nelson's
amendment TO provide a fund for guarsn-
teeing bank deposits was defeated-yeas
II, nays 49. Those who voted for she
amendment were: epublicans-Ankeny.
Borah. Brown. Bourne, La Toilette, Nc
Cumber. Nelson. Piles. and Stephenson.
DemoCrats-Owen and Taylor.
Adopts AIIisOn's Idea.
An amendment by Mr.. Allison, to pro
emergency notes upon presentation to the
banks OF Issue. was adopted without d.
vision. An amendment offered by Mr..
McCumber TO reduce the period during
which the notes should be taxed at the
rate Of one-half Of per cent. from six TO
four months. was adopted. also without
discussion.
Then MIR Overman offered his amend
ment providing for permanent currency
commission. but on assurances from
Chairman Aldrich that the Committee on
Finance would prepare and report a bill
on the subject, he withdrew his proposal.
Mr.. Overman took advantage Of the op-
portunity to make a speech in opposition
TO the bill. which he called "a thin patch
on the crazy-quilt of our monetary sys-
tenn"
A chorus of noes bowled over an
amendment by Mr. McLaurin. the burden
of which was that individuals who could
furnish the required securities should be
authorized TO issue emergency notes the
same as banks.
Gore Hits at Trusts.
An amendment by Mr.. Gore proposed
that no bank, any officer Of which had
been connected with corporation found
guilty OF being a combination in re-
straint Of trade, should be entitled TO
the privileges of the bill 1t was knocked
out.
Mr.. owen offered an amendment that
no national bank make loans TO be used
for speculative purposes. After some de-
bate the amendment was disagreed to-
ayes H. noes Thrown, Culberson. Fra
zier, Gary, Gore Johnston, la Toilette.
McEnery, McLaurin, Owen, Overman,
and Taylor voting for IT,
An amendment by Mr.. Gore to do away
with the $1,000 and $4,000 bills of the
emergency currency was lost, as was an
amendment of Mr.. Culberson, TO require
national banks to keep all their reserves
in their vaults.
Senator La Toilette offered two addi-
tional amendments, which were bowled
out on a party vote. after a statement
from both Senators Teller and Aldrich. of
the Finance Committee, that they were
not within the purposes of the bill. Both
amendments forbade bank officers from
borrowing money from their own banks
under penalty Of Imprisonment. Mr.. Aid
rich said all such matters would be con-
sidered by the committee in forming leg
islation having reference to the banking
system
La Toilette Amends Bill.
Mr. La Toilette offered another amend !
ment, making it a felony and fixing a |
penalty for any officer. clerk. or agent
of bank who reports falsely the banks |
condition or circulation. Mr. Aldrich ex-
planned that he had been informed by
the Senator from Pennsylvania that the |
proposed amendment was covered by ex-
listing law. Mr.. La Toilette thought Z |
was so important that he would have
the Senator from Pennsylvania cite his |
authority. Mr.. Knox did so. Mr. La /
Toilette insisted that his amendment was /
an additional safeguard. and could do 10 I
harm. A vote was taken. and il seemed 1
to be defeated. Mr.. La Toilette called /
for a division. and at this moment Mr. |
Aldrich withdrew objection, aad The |
amendment was accepted.