Waterbury evening Democrat. [volume] (Waterbury [Connecticut]) 1903-1917, 1908-03-28
.ALDR|CH BILL PASSED
Affirmative Vote on Money Meas.
ure by the Senate.
BAILEY SUBSTITUTE is LOST.
Bill Provides That Banks May Issue
Not More Than $50o,ooo,ooo In Emer-
sency Currency-other Features Of
Importance Change Banking Laws.

Not More Than $5oO,oo0,0o0 In Emer-
sency Currency-other Features Of
Importance Change Banking Laws.
| Washington, March 2S.-After long
and serious debate in the senate,
wherein various methods of relieving
| money stringency were exhaustively
discussed, the upper house of the ma
tional legislature signified its approval
of the measure introduced by Senator
Nelson w. Aldrich of Rhode Island.
The votes in favor of the Aldrich bill
numbered forty-two. The negatives
were sixteen in number.
Following was the vote on the pas
sage of the 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, john
ston Dem.), Kean, Knox, Long, Nc
Cumber, Nelson, Owen Dem.), Per-
kins, Piles, Richardson, Smith of Mich
igan, Smoot, Stephenson, Sutherland,
Teller Dem.), Warner, Warren and
Wetmore-total, AZ.
Nays - Bankhead, Borah Rep).
Bourne (Rep), Brown (Rep.), CuIber-
son, Frazier, Gary, Gore, Hepburn
(RepD, La Toilette Rep.), McCreary.
McEnery, McLaurin, Overman, Payn-
ter and Taylor-total, 16.
Provides For Emergency Currency.
AS passed the bill provides for not
more than S500,000,000 of emergency
currency to be issued to national banks
upon deposit by them of state, county
and municipal bonds to be approved by
the secretary of the treasury. The cur
rency is to be issued with a view of Sc
curing an equitable distribution of the
currency over the United States and
in accordance with the unimpaired cap
ital and surplus of banks in each state.
Banks are to pay for this emergency
circulation one-half of / per cent
month during the first four months it 10
circulated and afterward three-quar-
tiers of l per cent month.
The bill provides that national banks
shall pay not less than / per cent on
government funds deposited with
them. . ..-.
Change In Banking Law.
AS amended in the last day of argu-
ment, the bill carries an important
change in banking laws relating to
bank reserves. This amendment pro-
vides that of the Is per cent reserve
required to be kept by banks not in re-
serve cities four-tfths is to be kept in
the vaults of the banks, and of that
amount one-third can be in the form
of securities of the kind required.
Before voting on the bill a ballot
was taken on the Bailey substitute,
which proposed that the government
instead of the banks issue the emer-
gency circulation. This was voted
down. AZ to 13 being the figures.
At the instance Of Mr.. La Toilette an
amendment was adopted prohibiting
any national bank from investing its
funds in stocks or other securities of
corpora ton the officers or directors
of which are officers or directors OF
the bank and providing penalty of
imprisonment 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 IL could be perfected in con-
ference. .@.+...-.-#a
The proposition TO insert provision
for a government guarantee OF deposits
in national banks was the subject of
an extended debate and was defeated
by vote of IL to 40. most of the
Democratic vote being against the pro-
posed amendment.
Two Amendments Defeated.
Another amendment offered by Mr..
La Toilette prohibited loans by ma
tional banks to its officers or to any
corporation the majority stock OF
which is owned by the officers of the
bank. 1t was rejected, as also was an
offered by Mr.. Nelson OF
Minnesota providing that no officer or
employee OF a national bank shall be
member of stock exchange or en-
gagged in buying or selling stocks or
bonds on a commission basis.
An amendment by Mr.. La Toilette 20
punish by from one TO five years Inn
prlsonment any Justification in bank
securities was adopted, but was pro-.
tested against by Senator Knox as al
L. L. -