The morning journal-courier., 1908-03-28
 Measure Before Senate Since January 9, Finally Put Through by Mainly
 Partisan Vote of
 42 to 16. MARKED CHANGES MADE
Four fifths of Reserve of Bank Not in Reserve City Must be Kept in Own Vaults-Jail for Officials Investing in
 Own Securities.

Washington, March 27.-The Aldrich currency bill was passed by the senate to-day by a vote of 42 to Is, in the main party vote. Previous to the vote on the bill, vote was taken on the Bailey sub, authorizing the govern ment, instead of the national banks, to issue the emergency circulation for which the bill provides. The vote on the substitute stood 42 to 13 and this vote was entirely partisan, even Sen ator LaFolette casting his vote with the Republicans The bill has heen before the senate since January g. The vote was not reached until after 6 o'clock and the galleries were practi- cally empty.
 An interesting feature of the passage of the bill was a reiteration by MT. Aldrich of his promise to- bring in bill for an investigation of the entire banking system of the country with a view to instituting reforms.
 As passed the bill provides for not more than s500,000,o0O of emergency currency to be issued to national banks upon deposit by them of state. county and municipal bonds to be approved by the secretary of the treasury The currency is to be issued with a view of securing an equitable 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 emergen- cy circulation one-half of one per cent. month during the first four months 1t is circulated and afterwards quarters of one per cent. a month.
 The bill provides that national banks shall pay not less than one per cent. on government funds deposited with them.
 As amended to-day the bill carries an important change in banking laws re- lating to bank reserves. This amend ment provides that of the IS per cent reserve which 1t Is required shall be kept by banks not in reserve cities four-fifths must 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 to- day the period during which one-half of one per cent. interest is to be charged was reduced from six to four months after which three quarters of one per cent. Is to be charged until redeemed.
 At the instance of Mir. LaFollette an amendment was adopted prohibit ing any national bank from investing its funds in stocks or other securities of a corporation the officers or 1irec- tors of which are officers or directors of the bank, and providing a penalty of imprisonment of from one to five years. In accepting this amendment MT. Aldrich said that he had not time 10 consider the amendment fully, but he was in sympathy with its general purpose He said it could be perfect ed in conference.
 The proposal that a provision he in serted for a government guarantee of deposits in national banks was the subject of an extended debate and was defeated by a vote of II to 46, most of the democratic vote being against the proposed amendment.
 An amendment by Mir. LaFollette to punish by from one to five years imprisonment any falsifcation in bank securities was adopted but was pro tested against by Senator Knox as all ready provided for by existing law.
 Following was the vote on the pass age of the bill:
 Yeas-Aldrich. Ankeny, Beverijge, Brandegee, Burkett, Burnham, Bur rows. Crane, Cullom, Curtis, Depew. Dick, Dillingham;, Dixon, Deliver, Du Pont, Ekins, Flint, Frye, Gallinger, Gamble. Guggenheim, Hopkins, John ston. (Dem), Kean, Knox, Lodge, Long, McCumber, Nelson, owen Dem.), Per kins. Piles, Richardson. Smith (Mich), Shoot, Stephenson. Sutherland, Teller tDem), Warner, WarfeS and Wetmore. Total 42.
 Nays-Bankhead Borah (Rep). Bourne (Rep), Brown CRep). Culber- son. Frazier. Gary, Gore, Hepburn tRep.). La Toilette CRep), McCreary, McEnerney McI.aurin, Overman, Paynter and Taylor Total Is.
 It is generally conceded that the ac- tion of the senate in refusing to adopt the amendment offered by MT. Nelson to provide for federal guaranty of ns- tionai bank deposits win make it easier to pass the bill in the house, where lit tle friendliness toward that feature has developed. Friends of the bill in the bin in the house will be able to draw for support on the open attitude Of the president in favor of the bill: and il will not be forgottap by them that some weeks ago 3F aker Cannon ex- pressed himself as generallt favorable to the measure.