The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1908-05-27
Both Senate and House Have
Come to an Agreement on
The Proposition of Much
Wanted Legislation.
DIFFERENCES HAVE
BEEN COMPROMISED.
Speaker Cannon Gives Con-
gressmen Word to Stay in
Capital as Votes Are Need
ed to Put the Bill Through.

CdpitdI dS VUlCS AL VCCu-
ed to Put the Bill Through.
Washington, D. c., May 27.-Cur-
rency legislation now seems assured
before the close of this session OF Con
gress. The conferees on the part of
the Senate and the House, who last
week announced there was no hope
gether that today. it is expected, they
will report a bill to the two bodies.
with the measure but both have been
making concessions and sacrificing
some of their views as TO what is best
to be done in response to the tre-
mendous pressure for some kind of
remedial legislation.
Permits Large Issue.
The bill as il is finally drafted will
permit the issue of s500,000.000 of
emergency circulation, to be based up
on bonds, Federal, state or municipal
and also upon clearing house certifi-
Gates. frequently referred to as ma
tional bank assets. Just how this di
vision will be made is still to be de
cided. The House cOnferees stood out
in favor of leaving it optional with the
banks to issue the circulation upon
either class of securities. This was
concession on their part, inasmuch
as they had insisted heretofore that
all the circulation should be based up
on assets. Senator Aldrich and his
fellow cOnferees on the part of the
Senate proposed that it be an even
division-50 per cent of one class OF
securities and 80 per cent of the 9th
er. The indications are that it will
be left optional with the banks. as
the House cOnferees suggested This
would be concession on the part OF
the Senators, who have been standing
out against any except bond-secured
circulation.
Bringing EN- In.
Speaker Cannon has sent word tc
all of the republicans not to leave the
city for the present. because he will
need every vote to pass the bill. since
the democrats, not being able to get
their kind Of measure. will prob
ably line up almost solidly against it
In the senate some Of the democrat
threaten to make trouble and start {
filibuster against the OnstructeC
bill. but it is hoped by the leaders o
that body that they can be persuaded
to content themselves with merely
expressing their disapproval of it anC
not making speeches of indefinite
length in opposition. The prospect:
Of adjournment by Thursday seen
excellent now.
The senate continues to mark time
and refuses to take up any Legislation
not bearing the leaders 20. X" while
the house occupies its time in gettins
rid of some minor matters
The following are the main point.
Of the understanding that had beer
reached:
The reserve provisions IN the Eree
land bill calling for retention of .;
per cent in central reserve cities anc
Is per cent in other reserve cities i!
reduced 10 a straight 10 per cent re
serve, without reference to classified
tions of cities
Rating of Bonds.
A higher rating is given to state
and municipal bonds than TO other Sc
curities upon which an emergency cur
rency may be taken out by banks
That is to say, county, state and mu
nicipal bonds will be valued at not Il
exceed 20 per cent of their marke
value, and all other bonds not to eX
Ceed 90 per cent of their market value
both without regard to whether the,
are offered as security for additiona
circulation under the National Clear
ing house plan or under the individual
bank. bond security plan. The amour
of circulation issuable upon a CONNER
cial paper basis is limited to 40 pc
cent of the capital of the applican
bank, instead of 100 per cent, as pro
vided in the Ereeland bill.
The redemption fund require men
of per cent under the present Law
is increased to 10 per cent for all EN-
erge ncy currency taken out
The total amount Of emergency cur
rency issuable is confined within
maximum of s5O0.0O0,0 900, as provided
by the Aldrich bill.
A time limit of three years is plaC
ed on the life of the bill.
If a bill is reported out of the con
ference today il will be passed by Ih'
house today.
Intimates of Speaker Cannon asser
that in the event that a bill alonl
the lines of the proposed compromis,
is brought in it could be passed by tn
hoass after aa hours debate.