Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-01-31
ALDRlCH BILL IS IN
Proposed Financial Measure is Re-
ported TO the Senate.
FEW CHANGES ARE MADE
Committee Emphasizes the Emer-
gency Nature of = ct.
FIVE HUNDRED MILL J. 'oTEs
Limit is Raised from Two = ID
Fifty Millions. ~
BONDS BASIS OF IS q
state and Municipal Securities to bc
Areepted ID 10 Ninety Per
Cent of Their Market
Value.
BONDS

on finance. today reported his bill provid-
ing for an emergency increase in the ma
tional bank circulation The report was
authorized at meeting of the committee
held today, at which all the republican
members present voted for a resolution
authorizing the reporting Of the bill and
all the democrats voted for the Bailey sub
stitute Senator Hansbrough, who favors
central bank scheme, was not present
and bis vote was unrecorded. The only
democrats in attendance were Senators
Teller. Bailey and Daniel Senator Talia-
ferro. who is absent in Florida. was
recorded as for the Bailey substitute. SEN
ator Money was also absent and his vote
was unrecorded. Mr.. Aldrich said he
would call the bill up for consideration on
Monday, February 10.
Mr.. Aldrich says he made this announce
ment as to time so that the 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 railroad
bonds and probably would suggest them at
a later day. lie 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 lie also
added that his correspondence with the
Interstate Commerce commission on the
subject of railway securities would be pre-
sented as document
hut Little Changed.
The various amendments which have been
published from time TO time appear in the
bill although in general character the bill
remains tho same as when introduced.
There has been an effort on the part of the
committee to emphasize the emergency ma
ture 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
striugency occurs.
The following amendment Is inserted in
the first section Of the bill in lieu OF the
provision which gave the comptroller OF
the currency power to fix the time and
amount OF issues. when application is
MADE. according to his Judgment and at
his convenience:
The cumptrollcr OF the currency shall
transmit Immediately the application, with
his recommendation TO the secretary Of the
business conditions in the locality demand
additional circulation. approve the same.
aud shall determine the time Of issue and
fix the amount, within The limitations
hereinafter imposed of the additional cir
culatinE notes To DO ISSUED. ~ order mat
the distribution of notes to be Issued under
the provisions of this act shall be made as
equitable as practicable between the va
rious sections of the country, the secretary
of the treasury shall not approve applica-
ttons from associations in any state in eX-
cess OF the amount 10 which such state
would be entitled of the additional notes
herein authorized on the basis of the pro-
portion which the unimpaired capital and
surplus of the national banking associations
IN such state bears to the total amount OF
unimpaired capital and surplus Of the ma
tonal banking associations Of tho United
States; Provided, however. that in case
the applications from associations in any
state shall not be equal to the amount
which the associations OF such state would
be entitled to under this method of dlstri-
button, tho secretary Of the treasury may
In his discretion, To meet an emergency
assign the amount not thus applied for Ia
any applying association or associations in
the states In the same section of the coun-
try.
Issuance of Notes.
The clause of the Original bill. fixing I,
per cent OF the market value of all munic
ipal and railway bonds as the limit of the
issue OF notes against them. has beer
amended so that railroad bonds alone arc
TO be taken at 70 per cent OF their market
value. Notes may be Issued against de-
posits OF municipal and county bonds up tc
20 per cent OF their market value.
Tho limit OF circulating notes that ma,
be issued under the act has been raised
from Sc50OOO.O0O to S5Oo.OOOOOO
The section OF the bill relating to the ac
esptance OF erest-bearing obligations OF
any legally authorized bonds of states
cities, towns and counties as deposits fol
tho security OF additional bank currenc,
issued against them has been broadenet
considerably by amendment.
The word. "Or other legally constitute,
municipality or district" which have beer
added, are taken TO mean that bonds ISSUED
by school districts and townships will b,
acceptable, providing they conform to re
auirements specified. The population OF
these municipalities. is fixed by the re
ported bill at 10000 instead of 10000 a!
originally proposed.
There Ia an amendment making II tn
duty OF the secretary OF the treasury to OBJ
tain Information with reference 10 tn,
value and character OF the municipal anC
railroad securities authorized to be &C
oepted under the provisions OF the act. ant
he Is required from time To time TO furnlsl
information to national banking associa
tlons as 70 such bonds as would be ae
eeptable as security To the end that IN
formation concerning railroad bonds MAJ
be gathered with some degree OF accurac,
the clause OF the bin relating TO the ac
ceptanoe OF railroad bonds as security 70
note Issues is amended 80 as to incIud,
only Ahe poAuS OF r"hus winch comply
with the existing Jaw IN reporting state
ments Of their condition and earnings to IN,
Interstate Commerce commission.
Conveyance Of TftIe.
Tho provision IN the bnl requiring
memorandum on the back OF each bond
showing that the legal title OF the same ha
passed to the treasurer Of the Unite.
States In trust has been stricken out an,
II has ben made the duty OF the secretar r,
ef the treasury TO prescribe regulations fo
conveying title
The provision OF the original bill relatlnI
te the preparation Of circulating notes Il
blank 10 an amount equal 10 30 per cen
Of tho stock Of hank requesting AN Is
susnce has been changed 30 that Il Is man
dstory upon the comptroller 10 proceed a.
so0n as practicable to prepare notes for al