Los Angeles herald., 1908-03-28
ALDRICH BILL
is PASSED BY
u. s. SENATE
UPPER HOUSE VOTES ON NEW
CURRENCY MEASURE
LA TOILETTE GETS AMEND DIM ENT
ACCEPTED
Proposed Law Provides for Issuance
by 6anks of Emergency Money
on Deposit of
Bonds
Hv Assnciateh Press.

BY Associated Press.
WASHINGTON, March 27--The AL
drica bill was passed by the senate to-
day by a vote of AZ to 16, in the main
party vote. Previous to the vote on
the Aldrich bill vote was taken on
the Bailey substitute authorizing the
government, instead of the national
banks. to issue the emergency circu-
lation for which the bill provides. The
vote on the substitute stood AZ to IL,
and this vote was entirely partisan,
even Senator LaFollette casting his
vote with the Republicans.
The bill has been before the senate
since January 2. The vote was not re-
ported until after p. m. and the gal
leries were practically empty.
An Interesting feature of the passage
OF the bill was a reiteration by Mr..
Aldrich of his promise to bring in
bill for an investigation of the entire
banking system of the country with a
view to instituting reforms.
Emergency Currency
As passed the Aldrich bill provides
for not more than $500. 900 Of emer-
gency currency to be issued by national
banks upon deposit by them of state,
county or municipal bonds TO be ap-
proved by the secretary of the treas
ury. The currency is to be issued with
a view of securing an equable distribu-
ton of The currency over the United
States and in accordance with the un-
impaired capital and surplus of banks
in each state.
Banks are to pay for this emergency
circulation one-half of one per cent a
month during the first four months
it is circulated and afterward three
quarters of one per cent month.
The bill provides that national banks
shall pay not less than one per cent
on government funds deposited with
them.
AS amended today the bill carries an
important change in banking laws re-
lating to bank reserves. This amend
ment provides that of the Is per cent
reserve required to be kept by banks
not in reserve cities, four-tifths of this
is to be kept in the vaults of the
banks and of that amount one-third
can be in the form of sureties of the
kind required.
BY another amendment agreed to to-
day the period during which one-half
of one per cent interest is to be charged
was reduced from six to four months,
after which three-fourths of one per
cent is to be charged until redeemed.
La FoIIette's Amendment
At the instance of Mr.. La Toilette an
amendment was adopted prohibiting
any national bank from investing its
funds in stocks or other securities, or
a corporation, the officers or directors
of which are officers or directors of the
bank, and providing penalty of i'm
prisonment of from one to five years.
In accepting this amendment Mr.. AL
drich stated that he had not time to
consider the amendment fully, but was
in sympathy with its general purpose.
He said it could be perfected in con-
ference
The proposition to insert provision
for a government guarantee of depos-
its in national banks was the subject OF
an extended debate and was defeated
by a vote of IL to 46, most of the DEM
ocratic vote being against the PROPOSE
tion.
Another amendment Offered by Mr..
La Toilette prohibited loans by national
banks TO the officers or to any corpora
ton the majority stock of which is
was rejected, as was also an amend
ment offered by Mr.. Nelson of Michi-
gan providing that no officer or employe
of national bank shall be member of
a stock exchange or engaged in buying
or selling stocks or bonds on a COM
mission basis.
An amendment by Mr.. La Toilette to
punish by from one to five years inn
prisonment any falsification in bank Sc
curities was adopted, but was protested
against by Senator Knox as already
provided for by existing law.
Senator Teller offered, on request of
Senator Bailey of Texas, who was alb
sent, the substitute currency bill of the
senator from Texas, which he stated
was in the main similar to the Aldrich
bill with the difference that it provided
for government instead of bank paper,
and asked for a roll call.
The vote was AZ to 19 against the bill.
Before the vote was taken on the
Aldrich bill Senator Teller explained
his reasons for voting for the measure.
Vote on Aldrich Bill
Following was the vote ON passage of
the Aldrich bill:
Yeas-Aldrich, Ankeny. BeVeridge,
Brandegee. Burkett, Burnham, Bur-
rows, Crane, Cullom, Curtis, Depew,
Dick, Dillingham;, Dixon, Dolliver Du-
pont, Elkins. Flint, Frye, Gallinger,
Gamble, Guggenheim, Hopkins, Johns
ton (DemJ, Keane, Knox, Lodge Long,
McCumber, Nelson, owen Dem1, Per-
kins. Piles, Richardson, Smith of Mich
igan, Smoot, Stephenson, Sutherland,
Teller CDem), Warner, Warren, Wet
more-42.
Nays -Bankhead, Borah RepD,
Bourne (Rep), Brown Rep), Culber-
son, Frazier Gary, Gore, Hepburn
CRep). ia Toilette Rep,) McCreary,
McEnery, McLaurin, OYerman, Paint
or, Taylor-16.
Following is the text Of the impor-