The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-01-26
ALORICH BILL
BEING PATCHED
Several Suggestions and Modi-
ficationS Accepted in Hope
of Making it PalatabIe.
MANY CHANGES EMBODIED
EVERaIS- RETAINED.
MANY CHANGES EMBODIED

Washington, Jan. 25.-When the SEN
ate committee on finance meets next
Monday Chairman Aldrich will be pre-
pared to exhibit the perfected text of
his currency bill. During the recess of
the committee, Mr.. Aldrich has been
engaged with Senators Hale and Ali
son and other prominent Republican
members in putting the finishing
touches upon the measure, and they
held their final meeting today. The
new bill will in no wise depart from
the principle underlying the original
measure, but il will embody many
changes, due primarily to suggestions
made in the committee and secOndarily
TO suggestions from outsiders.
BaIIey's Proposition.
Among the more important of the
changes will be one accepting Senator
Bailey's proposition for distribution of
the proposed surplus bank issues among
the various states in proportion TO their
banking capital and surplus. This fea-
ture has been strenuously contended for
by the Texas senator, and the Repub-
licans have decided to cOncede it, not
only because they consider it equitable,
but also because they think il will as
sist materially in bringing Democratic
the senate. Senator Bailey has been.
engaged in preparing a substitute bill
in which this feature is given a prom
inent place, and it is not yet determined
whether he will desist when the action
of the majority membership becomes
known. 1t is probable, however, that
he will go forward with his own bill
for the present, and until the retention
of the proposition is assured.
Changes to Get Support.
other changes which it is hoped will
have a notifying effect upon opponents
both in the Democratic party in the SEN
ate and among western Republicans are
one increasing the amount of extra cir
culation allowed by the bill from $780,
100000 provided by the first draft of
the bill to $500, 200, 900, and another max
ing radical changes in the provision in
regard to municipal bonds, which the
bill provides shall be accepted as secur-
ity for the surplus issue.
AS the bill stands. it requires that
cities whose bonds may be accepted
shall be fifteen years old, have not few
er than 10000 in population. and shall
not for ten years have defaulted on any
bonded Indebtedness. In the new print
all these restrictions and definitions will
be eliminated and the authorities thus
will be permitted to pass upon all mu-
nicipal bonds upon their merits at the
time presented. The committee also
will concede the contention that addi-
tional issues will be permitted to the
extent of 80 per cent of the market val
he OF the bonds deposited, instead of 70
per cent, as the first bill called for.
This latter change was suggested by
the terms of the original national bank
law.
Treasury to Be Responsible.
All these amendments are intended
to meet The demands for those who
would provide, first, for a greater ex-
pansion of the circulating medium. and
secondly. for more liberal and equita-
bic treatment of the smaller and new
er centers of population, and the hope
is expressed that they will have the
effect of populariZing the measures and
of expediting its passage.
One important effect of the bill as
il will be presented will be of max
ing the United States treasury direct
ly responsible for the payment of all
bank notes issued after the law goes
into effect. There is a popular impress
sion that under the terms of the bill
there will be two kinds of bank notes |
one class such as is now used and |
issued, and the other the extra circu- |
lation to be used under the national |
law. Mr.. Aldrich characterizes this as
an entire misrepresentation of the intent |
of the measure. On the contrary. he |
says, all the notes will be uniform |
but that they will be different from |
the notes now provided for. These spe- |
city the deposit of government bonds |
TO secure payment, and this specifica- |
tiOn viii be discarded. In its place will |
be a legend to the effect that the gov |
eminent guarantees the payment of |
the note.
Whether the committee will report |
the bill after its next meeting will de- |
pend upon the extent that the commit |
tee may be disposed to go in still fur
Their granting courtesy to Secretary
Cortelyou in the matter of his long |
promised statement in regard to the |
course of the treasury during the re-
cent financial eXigency. There is no |
longer a pretenSe that the character Of |
the bill itself will be changed in any |
wise by this report, or by any outside |
report or suggestions; but il is felt that |
the figures Mr. Cortelyou will supply
will be of vital Importance in consid-
ering the bill in the senate. The sec
rotary is giving the report his personal |
and is under promise to pre-
sent it at the earliest possible moment
1t is not believed that the statement
will be delayed beyond the middle of
next week.