Evening star., 1908-01-30
THE AlDR|CH BILL
Financial Measure Reported
to Senate.
EMERGENCY NATURE OF IT
Amendments Intended for More
Money in Stringency.
\ TRANSFER OF AUTHORITY
Secretary of Treasury Must Apriove
Recommendation of Controller
of Currency for Issue.

committee on finance. today favorably re.
ported his bill providing for an emergency
increase in tho national bank circu-
lation. The report was authorized at a
meeting Of tire committee held today at
which eli tic republican members pres
ent voted for resolution authorizing the
reporting ot the bill and all the demo
Gratis voted for the Bailey substitute. Sen
ator Hansbrough. who favors a central
bank scheme. was not present. and his
vote was unrecorded. The only demo
Gratis in attendance we're Senators Teller
Bailcy and Daniel. Senator Taliaferro
VINO is absent in Florida, was recorded
as for the Bailey substitute. Senator
Money also was absent and his vote was
unrecorded. Mr.. Aldrich said he would
call the bill up for consideration Monday.
r'eh.uary 10.
Mr.. Aldrich said he made this announce
ment as TO time SO that senators might
have ample opportunity TO prepare for
the discussion of the bill. He said that
the committee had under consideration
some amendments TO the bill relating to
abroad bonds and probably would Sug-
gest them at later day. He explained
that the bill was the bill of the ma
jority of the committee. and that mem
bers of the minority might have sub
stitute to offer later. He also added that
mis- correspondence with the interstate
commerce commission upon the subject
of railroad securities would be presented
IS document
Mr. Bailey said hat il the finance COM
mittee proposed to submit written re-
port on the banking bill he wished to
reserve the right on behalf Of the mi
nority Of the committee to do the same
hereafter.
Mr. AIdrich replied that il had not
been customary to submit; written reports
in such cases, but he expected to explain
the measure on behalf of the committee.
In that case Mr. Bailey said it would not
be necessary to reserve any right for
report.
Summary of the Bill.
Various amendments which have been
published from time to time appear
in the bill. although IN general char
acte, the bill remains the same as
wher, introduced. There has been an
effort on the part of the committee to en-
phas!ze the emergency nature Of the act
that is proposed. and TO this end various
amendments are inserted in the bill which
are intended to cause speedy issuance OF
additional currency when a strlngency oc-
ours. The following amendment is insert
ed in the first section OF the bill In lleu
of the provision which gave the controller
Of the currency power to fix the time
and amount OF issues when Application Is
made according TO his judgment and at
mis- convenience.
THE controller OF the currency slla II
transmit immedia tely th. application. with
mis- recommendation. to the Secretary of
ihc Treasury who shall, ii in his Judgment
business conditions in the locality demand
additional circulation. approve the same,
and shall determine the time Of issue and
nix the amount within the limitations
ir,,r, sod Of
culating notes 10 be issued. In order that
tie distribution Of notes TO DE ISSUED
under the provisions OF this act shall De
made as equitable as practlcaD.e be-Ween
lie various sections OF the country the
secretary of the Treasury shall not ap-
,,rove applcat tion from associations in any
state IN excess OF the amount To Wltch
such state would be emitted Of the adul-
tional notes herein authorized on the
oasis OF the proportion which the unim-
aIred capital aud surplus OF the national
banking Associations III such state bears
20 the total amount of uatmpaired capital
and surplus OF tne rational banking as
sociations If the / ltt q States: PROVIDED,
however, that in "-se Tie appiicatlonS
rom associat.o o2s' n any state shall not
Dc cqlIal to the amolnI Wnich the SusSo-
Citations OF such Stdre would DC emitted
- under ths method distribution, the
Secretary uC thc Treasury may, In ms DIS
.rction 10 mec; an emergency, assign the
p,vine association or associations IL states
m the same section Of the country
Limit of Issue.
The clause Of the original bill liking -
pcr cent OF the market value OF al
municipal and railway bonds as the limit
OF the issue OF notes against them has
been amended 50 that railroad bonds
alone are 10 be taken at - per cent OF
their market value Notes may be issued
against deposits OF municipal and county
bonds up to 10 per cent OF their market
value
The limit Of circulating notes that may
b. issued under the act has been raised
from $50 nCa 800 to $500 Cuu.un. The sec
ton 81 the bill relating TO the acceptance
Of interest bearing Obligations or any lc-
.aliy authorized bonds OF states. cities,
towns and counties as deposits Tor the
security Of additional bank currency is
sued against them has been hroaiened
considerably by amendment The words
''Or other legally constituted nunIclpaiit%
a. district. which have been added. arr
taken TO mean that bonds issued BY school
districts and townships will hc acceptable
providing they conform 70 rcquircme mt 5
Sp.cified The population Of these muni-
ciralitieS is fixed by the reported hill at
lu.cio instead Of 2o,,sn, originally pro
posed.
duty OF tho Secretary Of the Treasury To
obtain information with reference to the
value and character OF 1he municipal
and railroad securities authorized to be
accepted under tho provisions OF the act
and he is required from time TO time To
furnish information to national banking
associations as TO such bonds would he
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 of railroad bonds as Sc
curity for note issues is amended so as
10 include only the bonds OF roads which
comply with the existing law I'm report
ing statements of their conditions and
earnings to the interstate commerce COM
mission.
The provision in the Old bill requiring
a memorandum on the back of each
bond showing that the legal title of the
sa me has passed to the treasurer of the
United States in trust has been stricken
out and il has been made the duty OF
the Secretary OF the Treasury to pre-
scribe regulations for conveying title.
Preparation of Notes for Circulation.
The provision of the original bill relat-
ing TO the preparation OF circulating not IS
in blank TO an amount equal to 10 per