Greene County herald. (Leakesville, Miss.) 1898-current, 1908-04-03
PASSES CURRENCY Bill
MEASURE BY SENATOR ALDRlcH
rs PASSED BY VOTE OF
az TO is.
BAILEY SUBSTITUTE IS LOST
Provides for Not More Than $50o,0o0,-
600 Emergency Circulation to Be
Issued to National Banks
Upon Approved Security.

Washington, March 2S.-The Aid
rich currency bill was passed by the
senate Friday by a vote of AZ to 16,
in the main a party vote. Previous to
the taking of the vote on the Aldrich
bill, vote was taken on the Bailey
substitute authorizing the government
instead of the national banks to issue
the emergency circulation, for which
the bill provides.
The vote on the substitute stood
AZ to 10 and this vote was entirely
partisan, even Senator La Toilette
casting his vote with the Republicans.
The bill has been before the senate
since Jan. 2. The vote was not
reached until after 6 p m. and the
galleries were practically empty.
An interesting feature of the pas
sage of the bill was a reiteration by
Mr.. Aldrich of his promise to bring
in a bill for an investigation of the
entire banking system of the country
with view to instituting reforms.
$5oo,ooo,ooo Emergency Currency.
AS passed, the bill provides for not
more than $500N00,000 of emergency
currency to be issued to national
banks upon the deposit by them OF
state, county and municipal bonds to
be approved by the secretary of the
treasury.
The currency is to be issued with
a view to securing an equitable dis
tribution of the currency over the
United States and in accordance with
the unimpaired capital and surplus of
banks in each state.
Banks are to pay for this emergency
circulation one-half of 1 per cent per
month during the first four months
it is circulated and afterwards three
quarters of l per cent per month. The
bill provides that national banks shall
pay not less than l per cent on gov
eminent funds deposited with them.
AS amendment, the bill carries an
important change in banking laws re-
lating to bank reserves, This amend
ment provides that of the 10 per Get
reserve required to be kept by banks
not in reserve cities, four-fifths OF this
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.
Interest Clause Amended.
BY another amendment agreed to.
the period during which one-half of
/ per cent interest is to be charged
was reduced from six to four months,
after which threefourths of per
cent Is to be charged until redeemed.
At the instance of Mr.. La Toilette,
an amendment was adopted prohibit
ing any national bank from investing
it's funds in stocks or other securities
of a corporation, the officers or d.
rectors of which are officers or dire
tors of the bank and providing pen
atty of Imprisonment of from one to
five years.
In accepting this amendment, Mr..
Aldrich stated that he had not time
to consider the amendment fully, but
was in sympathy with its general pur
pose. He said it could be perfected in
conference.
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 wned by the officers of the
bank.
1t was rejected, as also was an
amendment offered by Mr.. Nelson of
Minnesota, providing that no officer
or employee of national bank shall
be a member of stock exchange or
engaged in buying or selling stock or
bonds on a commission basis.