The Montgomery advertiser., 1908-01-31

REPORTS BILL
Minority Members Vote
Against It.
EMERGENCY NATURE OF ACT
The Limit Of Circulation Notes IS
Doubled.
An kmendment Makes Il Duty Of See
rstsry Of Treasury TO obtain
Information ss TO vaiue
Of Bends. -
EMERGENCY NATURE OF ACT

rich. chairman Of the Senate Commit
tee on Finance, today favorabiy re-
ported his bill providing FOR an emer-
geney Increase In the national bank
circulation.
The report was authorised at q meet
ing Of the committee held today at
which all the Republican members
present voted for resolution author
izing the reporting OF the bill and all
the Democrats voted for the Bailey
substitute. Senator Hansbrough, who
favors central bank scheme. was not
present and his vote was unrecorded.
the only Democrats In attendance were
Senator Teller. Bailey and Daniel SEN
ator Tailiaferro, who is absent In
Florida. was recorded as for the Bal
ley substitute. Senator Money also was
absen; and his vote was unrecorded.
Mr.. Aldrich said he would call the bill
up for consideration on Monday. Feb
ruary To-.
MT. Aidrich explained that the, bill
was the bill OF the majority OF the
committee and that members Of the
minority might have substitute to
offer later. He also added that his COR
respondence with the Interstate Conn
nerce Commission upon the subject or
railroad securities would be presented
as document. ~
Mr.. Bailey said that II the Finance
Committee proposed to submit writ
ten report on the banking bill. he
wished to reserve the right on behat
of the minority OF the commistee 10 90
the same hereafter. Mr.. AIdrich re-
piled that 1t had not been customary
10 submit written reports in such cases
but he expected to explain the measure
on hehalf Of the committee. In that
case. Mr.. Bailey said, It would not be
necessary to reserve the right OF any
report.
varsous Amendments.
The various amendments which haYe
bean publlshed from time TO time APP
near in the bill. although in general
character the hflt remains the same ~
zvher sntrodu4eds There has been an
@egnrtsson tha nmrt OF the coEnmitfeesto
enphasize the emergency nature OF the
act that is proposed and to this enc
various amendments are inserted IN sne
bin which are intended to cause speedy
issuance Of additional currency We
atrinrency occurs. The Following
smsrdnant Is inserted in the frst sec
ton OF the bill In lieu Of the provision
which gave the Comptroller OF the
currency power to fix the time ana
amount of issues, when Application "
made according to his Judgment ana
at HIS convenience:
'aThe Comptroller of the currency
shall transmit immediately sne App
cation. with his recommendation, 20 tne
secretarv Of the Treasury, who SHAH.
n n his Judgment, business eonditlon
~ tha locality demand additional CIR
siulatIon- approve the same and shaAi
dafsruina the time OF issue ana nx the
amount. within the limitations nereih
after imposed Of the additlonal circu.
iating notes to be issued. In order inst
- - mnfAa IN be Is
smea under the provisions of this act
shall be made as equitable as practi-
cable between the various sections OF
~ = country the Secretary OF the Treas"
r,rv ahaIl not approve applications from
aasociations in any State IN excess OF
the amount to which such a state wouio
be entitled of the additional notes heEe
N Authorized on the basis of the pro-
norton which the unimpaired oapital
and surplus Of the national banking
~aaoeiations In that State bears to the
total amount of impaired capital ana
Surnlua OF the national banking assoc
Citations OF the United States; provided.
however, that in case the applications
from associations in any state snail not
be equal to the amount wnlch tno =.
socIations Of such state would pc en-
titled TO under this method OF distri-
button. the Secretary of the Treasury
may. in HIS discretion, to meet an
ernergency assign the amount not thus
applied for to any applying association
or associations in States In the same
section of the country"
The clause of the original bill hxing
rs per cent Of the market value OF all
nuniciual and railway bonds as the
limit Of the issue OF notes against them
has been amended so that railroad
bonds alone are to be taken at IS per
cent of their market value Notes may
be issued against deposits OF munlcI-
pal and county bonds up to 30 per cent
OF their market value
The limit OF circulating notes that
may be issued under the act has oeen
raised from $3.50, 1000, 900 to S500,OOO,00O.
The section OF the bill relating 70 the
acceptance of interest-bearsng oblise-
lions or any legally authorised oohos
Of States, cities, towns and counties as
deposits for the security of additional
bank currency issued against them mas
been broadened considerably by amend
rnAnt The words cor other legally
constituted municipality or district
which have been added. are taken to
mean that bonds issued by school dis
tricts ana townships will be acceptable,
providing they conform to requirements
specified. The population OF these
Municipalities is fixed by the. report In
the bill at 10000. instead OF 10000 as
originally proposed.
Municipal Bond Values.
There Is an amendment making
the duty OF the Secretary of the Treas
ury to obtain information with refer-
ence to the value and character OF the
municipal and railroad bonds to be ac-
eepted under the provisions Of the act,
and he is required from time to time
to furnish Information to National
Banking Associations as to such bonds
as would be acceptable as security. To
the end that information concerning
railroad bonds may be gathered with
some degree Of accuracy the clause OF
the bill relating to the acceptance or
railroad bonds as security for note is
sues, is amended so as to include only
the bonds of roads which comply with
the existing law In, reporting state
ments OF their earnings TO the Inter-
state Commerce Commission.
The provision in the old bill requir-