The Birmingham age-herald., 1908-05-27
REPUBLICANS READY
 ID SWALLOW ANYTHING
Democrats May Not Be So Willing to Accept the Proposed Measure, But They VIII Let Matters Take
 Their Course.

washington, May Zo.-lopecldi''- compromise between asset banking and emergency circulation based on state county and municipal bonds has been virtually arranged by the conferees on the Aldrich -Vreeland financial bill. complete agreement has not yet been reached, but is declared to be in sight. The democratic conferees have taken no part in framing up this substitute.
 The programme is for the republican conferees to have another meeting at o'clock tomorrow morning. The full conference committee will meet at 10 o'clock. The House expects to take up the report, consider and pass it be- fore noon. It will be laid before the Senate immediately after being adopted by the House and pressed for accept ance until a vote is reached.
 Three formal meetings of the repub- lican conferees were held today The first was attended by Senators Aldrich, Allison and Hale and Representatives Vreeland, Weeks and Burton.
 While all the conferees declined to discuss the probable basis of final agreement, and were pledged to abso- lute secrecy, the following is approx Fmately the common ground of com promise:
 Basis of Compromise.
 State, county and municipal bonds and negotiable commercial paper will be accepted as security for the issue of emergency notes. It is expected this will be on the basis of 60 per cent of
 otol paper. The chief desire of the Senate conferees has been to minimize the per- centage of commer3lal paper. They hoped to hold it at 25 per cent, finally increased 1t to 40 per cent, and may be compelled to take 50 per cent
 The percentage of the face value of these securities is still in dispute. The Aldrich bill fixed the bonds at 90 per cent of their face value and the Vree- land bill 75 per cent. It Is believed both bonds and commercial paper will be accepted at 75 per cent of their face value.
 The question of reserves has been finally settled. It. provides that 10 per cent of all emergency notes shall be retained in the treasury as a redemp- tion fund to aid in paying the deposi- tors of failed banks. This applies only to emergency circulattons The pres- ent law requires retention of per cent of notes in the treasury as re- demption fund.
 The time limit for the existence of the law Is in dispute. It will range from two to four years, during which the national monetary commission Is expected to investigate the financial situation and present a permanent sopu- tion of all existing problems. It Is understood the time limit will be placed at three years
 Time Limit of Notes.
 It is proposed to restrict the time limit of notes on which circulation is based to from 90 to 12O days. It is believed 90 days will be the compromise.
 It is also proposed to require two sig natures to any promissory note on which emergency circulation is issued.
 It has been definitely determined that the total issue of emergency notes will be limited to $500, ,00O000. The House in- sisted on the total being $75o,Ooo0oo.
 It has been decided that banks having 40 per cent of their capital stock in cir culation will be permitted to take out emergency notes The Aldrich bill fixed this limit at 50 per cent.
 It will be entirely optional with the banks whether they take out bond se- cured or commercial paper secured circu- lation. It is thought that individual banks will use bonds, while associations will present commercial paper
 A tentative draft of the agreement has been prepared and printed. It will be revised at the conference tomorrow, when a positive agreement is expected.
 Will Be Rushed.
 The House conferees anticipate but lit- tie difficulty in securing the passage of the conference report. They firmly be- lieve that 1t will be adopted by noon to- morrow If sufficient votes are not ob- tained the report will be laid aside until more of the republican absentees, who have all been summoned, return to their seats
 The Senate conferees think the report can be put through the Senate within a few days. They realize that considerable discussion will follow the presentation of an asset banking proposition to which all the democrats and many republicans are violently opposed. At the same time they believe that by pressing considera- tion and eventually holding few night sessions, a conclusive vote will be reached.
 A number of leading democrats declare they will not participate in any organ ized filibuster against conference report containing an asset currency plan. They announce an intention of fully putting themselves on record and then permit ting the republicans to assume responsi- bility for the obnoxious legislation. Sen ator Teller member of the finance com mittee, takes this view He says his at titude can be made clear in speech not consuming more than an hours time. He says his opposition would be as deter mined if only per cent of asset banking were proposed as if the percentage was 100.
 Dlscord Is Spreading.