The Chanute times. [volume] (Chanute, Kan.) 1897-1913, 1908-04-03
PASSED SENATE
THE FINAL VOTE ON THE AL.
DRICH CURRENCY BILL
WAS 42 TO i6.
IN THE MAIN A PARTY VOTE
The Measure Provides for the Issue
of Emergency Currency by
National Banks Upon De-
post of Bonds

Washington, Mar. 2S.-The Aldrich
currency bill was passed by the SEN
ate Friday by a vote of AZ to 16, in
the main a party vote. Previous to
the taking of the vote on the Aldrich
bill vote was taken on the Bailey
substitute 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 AZ to 10, and this
vote was entirely partisan, even Sen
ator LaFolette casting his vote with
the Republicans. The bill has been
before the senate since January 2. The
vote was not reached until after p.
M, and the galleries were practically
empty.
An interesting feature of the pass
age of the bill was a reiteration by
Mr.. Aldrich of his promise to bring in
a bill for an investigation of the en-
tire banking system of the country
with a view to instituting reforms.
AS passed the bill provides for not
more than $5O0,00000O of emergency
currency to be issued to national
banks upon the 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 to 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 emergency circulation
one-half of 1 per cent month during
the first four months it is circulated
and afterwards three-quarters of l per
cent a month.
The bill provides that national
banks shall pay not less than l per
cent on government funds deposited
with them.
AS amended Friday the bill carries
an important Change in banking laws
relating to bank reserves. mis- amend
ment provides that of the 10 per cent
reserve required to be kept by banks
not in reserve cities four-fifths of this
is to 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.
At the instance of Mr.. LaFollette,
an amendment was adopted, prohibit
ing any national bank from investing
it's funds in stocks or other securities
Of q corporation the officers or direc-
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,
Mr.. Aldrich stated that he had not
time to consider the amendment fully.
but was in sympathy with its general
purpose. He said it could be perfect
ed in conference.
The proposition to insert provision
for a government guarantee of de-
posts in national banks was the sub
ject Of an extended debate and was
defeated by vote of II to As, most of
the Democratic vote being against the
proposed amendment
Another amendment offered by Mr..
LaFollette prohibited loans by ma
tional banks TO its officers or to any
corporation. the majority stock of
which is owned by the officers OF the
bank. Ii was rejected as was also an
amendment offered by Mr.. Nelson
(Minn.) providing that no officer or
employee of a national bank shall be
a member of stock exchange or en-
gagged in buying or selling stock or
bonds on a commission basis.
An amendment by Mr.. LaFollette
to punish by from one to five years
any Justification in bank
securities was adopted but was pro-
tested against by Senator Knox as al |
ready provided for by existing law.
Democrats voting for the bill were |
Owen and Teller. Republi |
cans who opposed were Borah, Bourne, |
Brown. Hepburn and LaFollette.