The sun., 1908-04-14
TO CAUCUS on ALDRICH BILL
THE HOUSE MAY MAKE IMPOR-
TANT AMENDMENTS.
One introduced Including Commercial
Paper In the List Of Securities - =
basis for Circulation and for YOlun'
tary Clearing House Associations.


Paper In the List Of Securities - =
basis for Circulation and for VOlun.
tary Clearing House Associations.
WASHINGTON. April iS--All indications
now point to some important amendments
being incorporated In the Aldrich currency
bill in the House. That the measure will
pass that body Is assured whatever the
| report OF the House Committee on Banking
and Currency. The committee will close its
hearings on the bill on Wednesday. IL is
expected to make a report Immediately
thereafter. As the leaders now Wow the
situation, a caucus Of the Republican Repre-
ssntatives will have to be held before the
Aldrich bin Is taken up in the House. So
many differences Of opinion on the subject
Of the currency have developed among the
House membership that In the opinion OF
the leaders intelligent action is possible
snly through caucus.
While all signs point to amendment OF
the bill In the House, the central purpose OF
the measure will not be affected. Nearly all
the Republicans agree that emergency cur
rency legislation should be enacted at this
session along the lines Of the Aldrich bill.
and the differences Of opinion that have
developed are largely matters Of detail.
Mr.. vroeland Of New York introduced
currency bill to-day that is intended
as an amendment 10 the Aldrich bill IL
provides that commercial paper shall be
added to the list Of securities designated
by the Aldrioh bill as basis for circulation.
The Vreeland bill provides also that section
: Of the Aldrich bill, changing the existing
law relating TO bank reserves, shall be
stricken from the measure Mr. Nreeand
would make no change in the present regu-
lstions concerning bank reserves. He
would eNpunge from the Aldrich bill the
La Toilette amendment prohibiting banks
from investing their funds in corporations
In which their directors are interested.
The Nreeland bill In intended 10 draw
TO the support Of emergency currency
legislation Western members who have
baked at II because Of the failure OF the !
Senate bill to include Commercial paper |
among other securities as a basis for cir !
Cuation The measure provides for the |
organization OF voluntary clearing house |
associations, TO be composed OF not less |
than ten national banks having an aggre-
gate capital and surplus Of not less than
tl0OO0OOO. The clearing house associa-
tions are TO elect officers and boards Of |
directors under rules and regulations 10
be approved by the Secreary Of the Treas
uTy.
Under Mr., Yreelands plan any national
bank included in clearing house assOcia-
ton that desired additional circulating |
notes would have 10 deposit securities, in
oil nia1 pT n
the board Of directors Of such associations.
The association In behalf Of the bank would |
then apply TO the treasury for the notes up |
to the amount desired IT, in the opinion
OF the Secretary Of the Treasury business
conditions warranted, he would issue notes |
to the bank not in excess Of Is per cent. Of /
the securities deposited
Currency 30 issued the bill provides. shall
be a first lien upon the assets Of the bank to
which IL is issued. IL is made also a first
lien upon the assets Of all the banks COM
prising the association in proportion TO
their capital and surplus There is pro-
vision in the measure TO the effect that an
association may call upon any Of its con-
stituent tmembers for additional security
At any time.
The Vreeland bill, together with the
Aldrich bill and proposition TO create
commission TO devise permanent plan OF
banking and currency, will be considered
at the Republican caucus, which will be
held probably the latter part Of the week.
A conclusion in this matter depends upon
the outcome Of a conference 10 he held with
the President tomorrow night by Repre-
sentative Watson, the Republican whip, at
which the legislative programme Tor the
Of the session will be discussed
Should Congress adjourn without enact
ng an emergency currency law, such as is
in the pending Aldnch bill. the
United States will be confronted with a
panic next fall that will be serious in its
Effects upon the trade and commerce OF the
This Ia the substance Of a statement made
ly Charles &. Glover, president Of the Riggs
National Bank Of this city, who appeared
before the House Committee on Banking |
md Currency to-day to urge favorable
lction on the AldriCh bill.
THE Secretary Of the Treasury went TO
he relief Of the banks last fall TO the best
,f his ability said Mr.. Glover, -and his
lction was wise and courageous, but the
Treasury IL now in no condition TO a1Ord |
adequate relief in an emergency this year,
Unless Congress sees fit TO take action along
he lines laid down in the Aldrich bill
lpprehend grave trouble in the United /
states late in the year"
Mr. Glover declared that while there
vas an abundance Of money 20 be obtained
It this time. money conditions we're far
rom satisfactory. THE chief value Of the
Aldrioh bill Ia the moral effect il would
rave on the business Of the country added
Mr.. Glover. 1T would restore confidence.
Nth the assurance that $500, 10000 Of
urrency could be provided for emergency
money that usually seeks cover in stress of
would seek investment
In reply to questions Mr. Glover said
hat he was opposed TO the LaFOllette
amendment in the Aldrich bill prohibiting
national bank from loaning funds TO cor
,orations in which the officers or directors
we're interested. Mr. Glover expressed the
opinion that railroad bonds as a form Of
s,,,ritv for pircula tinn should ie rastnrpd |