The Glenwood post., 1908-04-04
SENATE PASSES
ALDR|CH BILL
SuBsTITUTE AUTHORIZING GOV.
EMINENT TO ISSUE EMERGEN.
cY CURRENCY DEFEATED.
NEARLY A PARTY VOTE
GOVERNMENT GUARANTEE OF
DEPOSITS IN NATIONAL
BANKS VOTED DOWN.

Washington.-The Aldrich currency
bill was passed by the senate Friday by
vote Of az to 16. In the main a party
vote.
Previous to the taking of the vote on
@e Aldrich bill a vote was taken on the
Bailey substitute, offered by Senator
\ Teller on request of Senator Bailey Of
Texas. who was absent, authorizing the
government instead of the national
banks to issue the emergency currency
Tor which the bill provides. The vote on
the substitute stood AZ to 13 and this
vote was entirely partisan, even Sena-
tor La Toilette casting his vote with
the Republicans.
The bill has been before the Senate
since January End. The vote was not
reached until after p. m. and the gal
lsrtes were practically empty.
An interesting feature of the passage
ct the bill was reiteration by Aldrich
ot his promise to bring in bill for an
Investigation of the entire banking
system OF the country, with a view to
mstituting reforms.
As passed, the Aldrich bill provides
for not more than $3.50, 900 of emer-
gency 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
view to securing an equitable distribu-
tion Of the currency over the United
States, and in accordance with the un-
impaired capital and surplus Of banks
In each state. Banks are to pay for this
half Of one per cent. a month during
the first four months it is circulated,
and afterward threefourths of one per
cent. month
The bill provides that national banks
shall pay not less than one per cent. on
government funds deposited with them.
As amended the bill carries an i'm
portant change in banking laws relat-
ing to bank reserves. This amendment
provides that of the fifteen per cent.
reserve required to be kept by banks
not in reserve cities, four-fifths of this
IL 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.
By another amendment, which was
agreed to. 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-fourths of
one per cent. Is to be charged until
redeemed.
At the instance Of Mr.. La Toilette an
amendment was adopted prohibiting
any national bank from investing it's
funds in stocks or other securities of
Q corporation the officers or directors
Of which are officers or directors of
the bank, and providing a penalty of
imprisonment of from one to FIVE
years.
The proposition to insert provis-
ION for a government guarantee OF de-
posits in national banks was the sub
5sct Of an extended debate and was de-
feated by a vote Of II to 46, most OF
the Democratic votes being cast
Against the proposed amendment.
Another amendment offered by Mr..
La Toilette prohibited loans by a ma.
tional bank to its officers or to my cor
poration the majority stock of which
10 owned by the officers of the bank
X was rejected, as was also an amend.
ment offered by Mr.. Nelson (Minne
sota). providing that no officer or en-
ploye Of national bank shall be
member Of stock exchange, or en-
gagged in buying or selling stock or
bonds on a commission basis.
Before the vote was taken on the
Aldrich bill Senator Teller explained
his reasons for voting for the meas.
ure.