Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1908-01-16
Washington GOSSIP
DOINGS OF congress FROM A
DEMOCRATIC STANDPOINT.
Introducing Bills With No Idea OF
Passing Them Seems to be the
Leasing Feature. Banking Law
Introduced by Senator CuIberSOn
Receives Consideration.
Especial Correspondence.) }

WASHINGTON. d. c., Jan. IL
Congress is standing pat with a ven-
geance, for it is doing nothing but
introducing bills, only very few of
which will ever be reported by the
committees.
After some weeks of consultation
with the financial interests" Sen
ator Aldrich has introduced an emer-
gency currency bill, but as the re-
publican leaders assure us that the
panic is over and that business is re-
suming its normal course, this would
seem to be very much like locking the
stable door after the horse had been
stolen. On the face of it, the AL
drich bill may be of benefit when the
next panic arrives, though the inter-
est rate of One-half per cent month
on the emergency currency is GER
tainly not high enough to automat-
ically retire it when the emergency
is over. In fact, if the bill is rushed
through, as intended, we may expect
to see some of the $250,00O,O0O of
currency provided for, issued at once.
for even first-class business notes are
still begging for buyers in New York
at higher rates than the bill pro-
vides, and there is but little money
for speculation. There is so little
confidence in Senator Aldrich, al
though he is acknowledged to be the
most able and adroit member of the
majority, that his measure will be
closely scanned for the "nigger in
the woodpile" that will favor the
financial interests" Without hav-
ing had time to analyze the Aldrich
bill am inclined to the opinion that
the low interest rate and the char
acter of the securities provided for,
are it's two questionable features that
demand careful consideration.
On the part of the democrats, Sen
ator Culberson introduced bill
amending the banking laws; so that
interest shall be paid on public de-
posits, which should receive favor
able consideration, but undoubtedly
will be opposed by the favored ma
tional banks, and their republican
friends in the senate. Also another
amendment to require national banks
to keep their own reserve instead of
in the vaults of other national
banks.
Senator Culberson also introduced
bill to protect deposits in national
banks by requiring all banks who ac-
cept the provisions of the act to pay
according to their combined capital
their proportion of deposits of insolv-
ent banks. Those banks who refuse
to accept the conditions of the act
are not to receive any government
deposits. That bill is perhaps in
tended to cover the proposition of
Mr.. Bryan that the government guar
antee deposits in national banks, but
the Culberson bill expressly provides
that "the extent of the obligation of
the United States is to enforce this
act" AS there would be a decided
objection by the strong banks to VOL
UNFAIRLY become surety for weaker
ones, it is not probable, if the bill
was to pass, that enough banks would
accept it's provisions to make it
workable. In case of panic, when
weak banks fail, to compel the
stronger ones to pay the depositors
of insolvent banks would add to the
strain and probably lead to the fall
ure of those banks SO assessed.
Senator Culberson's plan is, how
ever, far preferable to that of Mr.
Bryan's which would further en-
tangle the government with the
banking interests and require vast
reserve fund to meet the guarantee
in time of panic. Senator Culberson,
as the democratic leader of the sem
ate, evidently sees the impossible
conditions of the plan Of Mr.. Bryan
and has introduced his bill as pro-
test against Mr.. Bryan's radical prop
osition without perhaps any eXpecta-
tion that his bill will be favorably
considered.
ROBERT MILLER.