Waterbury evening Democrat., 1908-01-08
ID FIGHT MONEY BILL
Congressman Fowler Will Oppose AIdrich Measure.
IF HELPS STOCK GAMBLING.
Chairman of House Committee on
 Banking Says Bill Does Not Meet Situation and Predicts It's Defeat. Senator cuIberson Introduces Three.


 Banking Says Bill Does Not Meet
 Situation and Predicts It's Defeat.
 Senator CuIberson Introduces Three.
 Washington, Jan. S.-Senator Aldrich introduced the currency bill approved by Republican members of the com mittee on finance. At his request the bill was read at length, and very care full attention was awarded the read ing. -'...
 The bill provides for an additional issue of bank circulation which shall at no time exceed S25O.000,000 upon bonds other than those issued by the government, including state and mu- nicipal bonds in approved cases.
 The comptroller of the currency is given discretion in the issuance of the proposed currency and is authorized to decide as to the time and the amount to be awarded to any banking institu- tion.
 It is provided that the increased cir culation shall in no case exceed per cent of the value of the bonds depos ited.
 A monthly tax of one-half of 1 per cent is imposed upon the average amount of notes issued on bonds other than. bonds of the United States, and monthly returns under oath are re- quired to show the average monthly amount of notes so secured in circula tion.
 The general opinion here is that the bill will help along stock gambling. It tends to loosen the restrictions on the banks and gives preference to the se- curities they deal in over commercial paper on every sort. By it railroad bonds gre utilized as basis of mon- ey. Whatever securities are dealt in by banks are strengthened and in creased in value. Under 1t commercial paper can be discounted with money based on railroad securities, provided the emergency creating the necessity for such action exists in the judgment of the secretary of the treasury and such interests as may influence him. In general the railroads whose securi- ties have been used in so much of the financial gambling of the last few years are put far ahead of the busi- ness houses and their securities ele- vated above the best commercial pa per.
 It is understood that all the Repub- lican members of the committee are in favor of the measure except Senator Hansbrough. who believes that cen tral bank will best solve the currency problem. He has introduced bill pro viding for a central bank at Chicago.
 Republican leaders are extremely hopeful of the early passage of the Aldrich bill They declare that while they are anxious that it should not he a partisan measure. yet if Democratic opposition should be developed to the Republican plan for such legislation the majority will proceed to put the bill through the senate as party measure.
 It is expected that there will be Democratic criticism of the Aldrich bill. and Republicans declare that they are ready to accept any reasonable amendment from that source that may result in making the bill as nearly nonpartisan as possible.
 The bill will not he taken up by the committee until next Tuesday. Senator Aldrich allowing week to elapse to give ample time for it's consideration.
 Senator Culberson introduced three bills in relation to national banks. all of which were referred to the commit tee on finance. One of the bills re- quires the banks to keep in their vaults the reserve required by law. Another provides for the payment of interest on government deposits in designated de- positories at the rate Of 2 per cent per annum during August. September. De- tober and November of each year. 4 per cent during December. January. February and March and 6 per cent during April. May. June and July.
 The third bill provides that ''in ev- cry case where any national bank which accepts the provisions of this act becomes insolvent or is unable to pay its depositors in whole or in part, all national banks which shall accept the provisions of this act shall pay whatever may he due the depositors Of such bank which it is unable imme- diately to pay and the amount to be paid by each of said banks shall he in proportion to the combined capital and surplus of each as shown by the state ment of condition of the banks to the comptroller of the currency next pre- eedIng the insolvency or failure to pay depositoTs.'
 No public money is to be deposited or remain in any national bank which fails to accept the provisions of this act.
 Representative Charles N. Fowler (N. JI. chairman of the banking and cur. rency cOmmittee. issued d long state ment to prove that the bill did not meet the situation at all and predicting It's defeat. He will oppose it in the house.