The sun., 1908-03-28

81 Vhs average amount Of their notes In
BlrOulAtion 10 bo cot apart In the United
States Treasury ~ . depositorS' fund,
.fhis fund IL 10 he used to pay depositors'
losSes In any insolvent bank.
Mr.. MoCumber Of North Dakota had an
Sld amendment Of the same kind 40 Mr.
Nelson's pending. The difference was that
Mr., McCumber's suggestion was to create
q special fund TO guarantee depositors
aEainst losses He submitted figures show
Gag that from 1895 10 1908 the losses to de-
poSitors Of failed banks averaged yearly
assf,OOO A tax Of $50 or i.b1 per cent. OF
the bank deposits Of that period, he said,
would have made the losses good.
Mr.. Aldrioh said that the proposed fund
would not have made an imprint in the last
i panic, The fund would have to accumulate
100 years TO pay the losses to depositors
last year. he thought, therefore, no ade-
quate provision Of the kind could be made.
In oontroversion OF this view Mr.. Piles
Of Washington said there would have been
no panic II there had been a fund for de-
posltors back Of their deposits, It was
| The way to end bank runs.
! Mr.. Owens OF Oklahoma begged TO in
/ form the chairman OF the Finance Com
IHuitJeo lnAJ tnoTe was nOlulnB new ~ lHo
Rpfoposal for q fund 10 protect bank de-
6oaitors II was simply insurance, and in
adrance was principal that had been writ
ten into the law and was not a matter OF
hNpoollation. The cause OF pnniCs was pri-
bnArily fear. Give TO the depositor security,
and there would be no more boarding Of
blnoney in time OF stringency
IN an aye and nay vote Mr.. Nelson's
amendment TO provide fund for guaran
Il L.. az al 4 NF,
Thosa who voted for the amendment we're:
ilsepubcans Ankeny, Borah Brown,
Bourne LaFollette. Mctumber, Nelson,
IPiles and Stephenson; Democrats Owen
and Taylor.
An amendment Of Mr.. Allison 10 provide
for the permanent retirement ut the emer-
genoy notes on presentation to the banks
Of Issue was adopted without division
An amendment offered by Mr., McCumber
10 reduce the period during which the
notes should he taxed al the rate Of one-half
Of one per cent. from six TO four months.
WaR adopted also without division.
Then Mr.. Overtnan offered an amend
nnent providing for a permanent currency
commission, but on assurances from Chair
man Aldrich that the Committee on Finance
would prepare and report a hill on the
subject he withdrew his proposal. Mr..
Overman took advantage of the oppor-
". a
position TO the bill. which he called "A thin
patch on the crazy quilt Of our monetary
system
A chorus OF noes bowed over an amend
ment Of Mr. Molaurin, the burden OF which
was that individuals who could furnish
the required securities should he authorized
70 issue emergency Noes the same as banks.
An amendment by Mr. Gore proposed
that no bank which had any officer who
-. aIA tWl a..V,
found guilty Of being = combination in
restraint OF trade should be entitled to the
PRIVILEGES Of the bill II was knocked out.
Mr.. Owen offered an amendment that no
national bank should make loans 10 be
used for speculative purposes. After some
debate the amendment was disagreed
70. ayes, H. noes. l4-Brown, Culberson,
Frazier, Gary, Gore, Johnston, La Toilette,
MoEnery, MoLaurin, Owen, Oyerman and !
Taylor voting for IT,
An amendment by Mr.. Gore 10 do away (
with the $1,000 and $1,000 bills Of the |
emergency currency was lost, rs was an |
amendment by Mr.. Culberson to require |
national banks TO keep all their reserves
In their vaults.
Senator La Toilette offered two ad- |
ditional amendments which were bowled |
out on party vote after a statement from !
both Senators Teller and Aldrich Of the |
Finance Committee that they were not |
within the purposes OF the bill, The |
amendments forbade bank officers from |
borrowing money from their own banks |
under penalty OF Imprisonment
Mr.. Aldrich said all such matters would !
be considered by the committee in forming |
legislation having reference to the bank |
ing system.
Mr.. La Toilette offered another amend |
ment making it a misdemeanor and fixing /
a penalty for any officer, clerk or agent OF /
hank to report falsely the banks circula-
lion. After debate the amendment was
ancantad