Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-04-17
Leaders Of House Believe yree-
land Plan Only One Possible
Of Passage
Ia TOILETTE IDEA is KILLED
Scheme to Bar Loans to Concerns Of
ficered by Bankers Looked Upon as
Amending Banking Laws-Dummies
Would Evade Law = Objectionable
Clauses to Go.

Washington, April 17.--By the time
the republican house caucus meets
next Tuesday the situation regarding
currency legislation will almost surely
clear up to such an extent that the
leaders will be able to determine just
how far they can go.
At the present time they believe there
is a majority in the house for COM
promise measure which Will be the
Aldrich bill stripped of all the amend
ments put on in the senate, and with
the addition of the Nreeland scheme
for the issuance of notes, based on
commercial paper. thru the medium of
national clearing house associations.
There is now no chance for the pas
sage Of the Aldrich bill in its original
form. 1t will be the Aldrich- Vreeland
measure or nothing at all. and the
chances are about equal between a
compromise and no legislation what
ever.
1t is a significant thing that good
many of the bankers and representa-
tives of commercial associations who
came here for the purpose of opposing
the Aldrich bill as it passed the senate
have been more or less attracted by
the Nreeland amendment, and some of
those who came to scott have remained
to pray.
Objectionable Clauses to Go.
1t is also noticeable that the princi-
pal opposition expressed by bankers
generally has been to two features of
the Aldrich bill which did not prop
erly belong to that measure at all as
it was originally drafted, but were
forced upon it in the senate.
One is the proposition changing the
reserve of the national banks, which
it is admitted has no proper place in
an emergency measure.
The other is the so-called La Fol-
lette measure, which was put on to the
bill thru efforts of the Industrious sem
ator from Wisconsin.
This has nothing to do with emer-
gency currency or currency of any
kind 1t limits all national banks in
their right to make loans, whether they
take out currency or not, and it mani
testify has nothing to do with the is
sue of notes in time of emergency.
The plan which will be presented to
the republican caucus will be for an
currency pure and simple,
based either upon bonds of the ap-
han lief or
mercal paper guaranteed by voluntary
national clearing house associations.
The La Toilette provision limiting
the making of loans and the section in
creasing the reserves held in country
banks will both be omitted.
The tax feature will remain the same
as at present, and the house caucus
will therefore have an opportunity to
vote directly upon flatfooted PROPOSE
ton for an emergency currency with
out any side issues or any attempt to
amend the permanent banking laws Of
the country.
La Toilette Clause Assaulted.
1t has been noticeable in all the
hearings before the banking and cur
rency committee that the guns of the
bankers have chiefly been trained upon
the two sections mentioned.
The argument against the La Fol-
ette amendment has been almost I'M
lnimous. That section of the Aldrich
BILL as passed by the senate. declares
that no national bank shall invest any
part of its funds in securities of any
which has the same Off
.ers or directors as the bank, and it
provides for an Imprisonment penalty
Every banker and representative of
any commercial institution has sub
nitted the same strong plea to the
committee. They have shown that COM
nercial operations in great cities are
low exceedingly complex.
Men are necessarily interested in diff
erent corporations The better the
nan. the more acute his business
and the greater his wealth,
he larger number of companies he is
certain to be represented in as a di-
'ector or officer.
Senator La Toilette was aiming to
,ut stop to certain abuses which
lave grown out of the practice, in Ger
ain banks. of loaning money to cor
oorations in which some officer or di
ector was interested to much great
r extent than was justified by the COL
ateral offered.
1t is the unanimous opinion of the
'ankers heard before the committee
hat this section, if adopted, either now
II in the future, would paralyze the
epjtinate commerce. Of the country
Dummies Would Evade Law.
1t would compel every national bank
o put in dummy directors and Off
ers. The law would be evaded by