Rocky Ford enterprise., 1908-04-03
SENATE PASSES
SUBSTITUTE AUTHORIZING GOV.
ERkMENT TO ISSUE gMERogN.
cv CURRENCY DEFEATED.
NEARLY A PARTY VOTE
GOVERNMENT GUARANTEE OF
DEPOSITS IN NATIONAL
BANKS VOTED DOWN.

Waahington.-The Aidrich currency
bill wss passed by the senate Friday by
= vote Of ~ to 10. In the main a party
vote.
Previous to the taking OF the vote on
the Aldrich bill u vote was taken ON the
Bailey substitute. offered by Senator
Teller on request Of Senator Bailey Of
>Te3ns. who was absent. authorizing the
government instead of the national
banks to issue the emergency currency
for which the bill provides. The vote on
tho substitute stood ~ TO IL and this
vote was entirely partisan. even sena'
Tor La Toilette castin. his vote with
tho Republicans.
The bill has been before the Senate
since January End. The vote was not
reached until after O y. IN. and the sal.
lerics were practically empty.
An intcrcHtinH feature Of the passage
OF the bill wns = reitcration by Aid.!ch
It his promise TO bring In bill for an
Investigation OF the entire banking
system Of the country. with view to
inktiiutiug reforms.
As passed. tho Aidrich bill provides
for not more than $3.50. .ooo. 900 Of emer-
Eency currency to be issued 10 national
banks upon the deposit by them Of
bc approved by tho secretary OF the
treasury.
The currency Is to be issued with
view to securing nm equitable dIstribu.
ton Of the currency over the United
States, md In accordance with the un'
IMPAIRED capital and surplus OF banks
In each state. Banks are TO pay for this
emergency currency circulation one
half of one per cent. n month during
the first four months II IL circulated.
and aftorward thrccfourths Of one per
cent q month.
The bill provides that national banks
shall pay not less than one per cent. on
government funds deposited with them.
Az amended the bill carries mn I'm.
portnnt change In banking laws rclnt.
ing TO bank reserves. This amendment
provides that Of the fifteen per cent.
reserve required TO be kept by banks
not In reserve cities. four.iifths OF this
81 to be kept In the vaults OF the banks
and Of that amount oncthird can be
In the form Of securities OF the kind
Acquired.
BY another amendment. which was
agreed to. the period during which one.
half OF one per cent. interest IN to be
charged was reduced from six to four
months. after which thrcc-fourths OF
Oue per CCut. IN u Va Chais'u uuah
redeemed.
At tho instance Of Mr.. Ia Toilette an
amendment was adopted prohibiting
any national bank from investing It's
funds in stocks or other securities OF
q corporation the ofncers or directors
Of which are officers or directors OF
the bank, and providing n penalty of
Imprisonment Of from one to 1--WE
years.
The proposition to insert n provis-
ION for n government guarantee Of de-
posits in national banks was the sub
jsct OF an extended debate and was de.
feated by n vote Of II to sc. most Of
the Democratic votes being cast
against the proposed amendment.
Another amendment offered by Mr..
la Toilette prohibited loans by a M.
tional bank to It's ofiicers or to my cor.
poration the majority stock of which
1s owned by the oficers OF the bank.
It was rejected. Us was also an amend.
ment offered ny Mr.. Nelson (Minne-
sotn). providing that no officer or EN-.
ploye OF a national bank shall be
member OF n stock exchange. or en-.
gagged in buying or selling stock or
bonds on commission basis.
Before the vote was taken on the
Aldrich bill Senator Teller explained
his reasons for voting for the meas.
ure.