The Washington herald., 1908-03-28

evening, by - ayes TO l6 noes.
In substance. IT authorizes national
banks TO issue such notes on deposlting as
collateral United States or State bonds.
or the bonds of certain described counties
and municipalities. these notes te be sub
ject TO a progressive tax, which will COM
pei the banks to withdraw the notes from
circulation when the emergency has
passed
Before the final vote. Senator Teller,
acting for Senator Bailey who was alb
sent. proposed the Democratic substitute
for the bill, and when this was voted
down-i2 to 1S-ofered as an amendment
the salient feature of the Bailey bill.
which provided that the government and
not banks should issue the emergency
currency. Both bill and amendment were
defeated by strict party votes.
Democrats in Majority.
Then Mr. Teller explained that he In
tended to vote for the Aldrich bill. and
Mr. Johnston, the new Senator from Ala
bama. did likewise. Each said the bill
was unsatisfactory, but was the best that
could be obtained in the circumstances.
On the final vote Mr. owen. of Oklahoma,
Joined Teller and Johnston. His position
was that while the bill was unsatisfac-
tory. a measure to provide an emergency
currency was necessary, and he felt
obliged 10 vote fer it.
The Republicans who voted against the
bill were Borah. Brown. Bourne, Hepburn,
and La Toilette, all Of whom had shown
radical opposition to it.
The final vote in detail follows:
For the hill-Repubicans: Aldrich. Ankeny. BeV-
eridge. Burkett BuTnham. Burrows Crane Cul,Om.
Curtis. Depew, Dick Dillingham;, Dixon, Dclliver
Du Pont, Elkins Flint Frye GalIf-c-r Gamble
Gussenhein, Hopkins. Kean. Knox. Lodge Long Nc
Cumber. Nelson, Perkins Piles Richardson smith.
Cf Michigan; SmOot. Stephenson. Sutherland. War
ner. Warren. and WeImore. Democrats: Johnston.
Owen ard Teller
Against the bll-Republicans: Borah. Bourne.
Brown. Hepburn. and La Toilette. Democrats:
Bankhead. Clay. Culbcrson Gary Gore. McCreary
McEnery, McLaurin. Oyermau Paynter. and Taylor
Reserves Law Changed.
One of the important amendments
adopted was proposed by Mr.. Johnston,
Of Alabama II provided that national
banks required to hoid Is per cent in re-
serves should hold fOur-fifths Of these re-
serves in their own vaults. and that one
third of the amount so held might be in
the securities enumerated in the bill
Senator Aldrich accepted this amend
ment
Divergent views on the subject of bank
reserves appeared in amendments offered
10 the bill when the Senate took it up.
Senator Culberson had an amendment.
pending since Thursday, requiring all
banks to keep their legal reserves in their
vaults. Mr.. Johnston, of Alabama, had
an amendment, which was approved by
the Finance Committee. making all banks
outside of reserve cities keep four-fifths
of their 10 per cent reserve at home, but
permitted one-third of the four-fifths to
be in the form of securities acceptable as
a basis for emergency circulation.
Senator Gore. Of Oklahoma, offered an
amendment TO include, besides securities,
cotton warehouse receipts or grain ele-
vator receipts, not to exceed IS per cent
of the face value OF the receipt or the
products represented. Mr.. Cores pro-
posal was rejected.
Mr. Culberson offered an amendment 10
Mr. Johnston's amendment, which was
10 6LlhE OUT a tlhNSt ttldk WOulQ leaNe
the amendment in such shape that all
banks would be required TO keep all of
their reserves, whether it was 10 per cent
or 25 per cent. al home and in good and
lawful money
JObnStOn's Amendment Accepted.
Mr. Aldrich told the Senate that he was
sure it could not adopt any such proposal.
He could think Of no greater misfortune
that could befall the country than what
would follow such a provision of law. II
was imDracticable. and its adoption would
cause greater distress than the last panic
II was not possible TO keep reserves in
lawful money. and the question was
whether the gentleman from Texas want
ed the money of the country banks kept
at home or sent TO the large cities for
use. II he wanted it at home the pro-
vision allowing them to keep securities
approved by the government as part OF
the reserve was wise. These securities
would be Immediately convertible into
money at any subtreasury of the United
States. Mr. Culberson's amendment was
defeated. 45 70 4. Mr.. Johnston's amend
ment was agreed to.
Mr. Owen. Of Oklahoma, made an un-
successful attempt 20 place a provision in
the bill declaring that no provision Of the
law should be construed 10 forbid any
national bank to contract for the insur-
ance Of its deposits in any State where the
laws provide for the insurance of deposits
OF State banks. Mr.. owen said that the
national banks suffered disadvantage now
because some State banks have their de-
pOsits insured. and he wanted the national
banks to have the same privilege. The
law on the subject was not clear, and the
Comptroller of the Currency had raised
a doubt
Tells BOyhOOd Experience.
Mr.. Nelson. of Minnesota. wanted one
half of all taxes to be paid by national
banks upon the average amount of their
notes In circulation set apart in the
United States Treasury as a depositor's
fund. This fund was to be used TO pay
depositors' losses in any insolvent bank.
Mr.. McCumber. of North Dakota. had
an old amendment of the same kind as
Mr.. Nelson's pending. The difference was
that Mr.. McCumbers suggestion was to
create a special fund to guarantee de-