Bluefield evening leader. [volume] (Bluefield, W. Va.) 1906-1911, 1908-04-14
MUST AMEND
BILL
CHANCE FOR CURRENCY LEGIs.
I-ArIoN DEPENDENT UPoN
CHANGES IN ALDRICH BILL.

Washington, April l4.-The Re,
publican leaders have ascertained IN
q purely informal way that with
certain amendments the Aldrich bill
can get enough support In the house
to assure It's passage. and Senator
Aldrich, II is stated. has informed
them that the amendments they
have In mind will be satisfactory
to the majority In the senate.
Would he Serious step.
Tho committee on banking and
currency will, however. continue
consideration of the Aldrich bin. on
which hearings are now being given.
House haders feel that to discharye
the committee would be taking n
very serious step. particularly In
Wow of the opposition TO the Aid
rich bill that has been expressed by
commercial bodies, especially In the
west and south, but II is possible
that such a step will be taken.
To the caucus will be submitted
new currency bill, drafted by the
Republ ican leaders I'm the house and
introdTed by Representative Vree.
land. or New York. which embodics
80 much OF the Aldrlch bin as they
feel confident of and I'm which is I'm
corporated the amendments agreed
upon. The question IN the caucus
VIII be simply whether there shall
be an amended Aldrich bill or no
financial bill at all.
If the senate does not enact
currency commission bill at once
such n measure will be agreed upon
by the caucus and passed by the
house
In support OF the no-leglslation
idea II In suggested that such
course would leave the Republican
party without encumbrance at the
Chicago convention and enable the
free shaping there OF financial
plank.
In the bill introduced by MIR.
Vreeland the Aldrich bill. so far as
It appertains to the issuing of cur
rency on municipal bonds. is left un-
changed The section of the Aid
rich bill which changes the present
law OF reserves is stricken out. This
is the section which has met with
the most objection from the banks.
both In the country and the reserve
cities. The La Toilette amendment
Is stricken out. These sections were
eliminated on the theory that neith-
er one was necessary to a purely
emergency billion the agreement
that'tha bill should be held as close.
ly as possible to its purpose of pro.
vidlng simply for an emergency cur.
rency; that It was not desirable at
this time to go into a revision OF the
banking and currency law, but that
work should be and would be taken
up by a commission TO be created
before congress adjourns
To Meet Objections.
a section is added to the Aldrich
bill TO meet the objection Of west
ern and southern banks that they
own no bonds such as are required
for security under the Aldrich bill;
that they don't feel able to divert
their money TO the purchase OF such
bonds, and that all OF their funds
arr required In the needs OF their
business. The new section creates
an agency for the handling Of ordi
nary assets Of banks, including com
mercial paper. Under this section
groups OF national banks not lcsg
than ten In number and having an
aggregate capital and surplus OF at
least $4,000, 900 may form volun-
tary associations 20 be known as
National Clearing House Associa-
tionB.' Such an association shall
have officers and board OF direct
ors selected from the representative
Of the banks composing the group
and shall be organized and governed
according 20 rules 20 be prescribed
by the secretary or the treasury.
Any bank belonging TO such an az
sociation may deposit and assign 20
the association I'm trust such sscuri
ties including commercial paper. ag
may be satisfactory 10 the officer
OF the association The association
may thereupon make application tc
the comptroller Of the currency in
behalf OF th' depositIng bank for au-
thority to issue additional bank
notes TO an amount not exceeding
75 per cent Of the cost value Of the
securities so deposited.
The association is made n corpora
tion for The purposes OF the act only
Upon failure OF any bank 20 retire
its circulating notes the association
can sell ct public sale the securities
deposited n there should be q de-
hciency after the sale that deficiency
is made % first lien upon the assets
of The bank issuing the notes 10
there should stll be- deficiency tine
asots OF an The banks beIOugine Oh
The association are made Liable in
The payment OF the notes. All OF t1a
other provisions OF tho Aldrich BIN