The Washington herald., 1908-03-27
ALDRICH BILL LAGS
Still Under Discussion in
the Senate.
INTEREST FOR GOVERNMENT
senator Nelson's Amendment Re-
curing Banks 10 Pay for Deposits
of Public Money Is Agreed To.
Philippine Bonds Inserted as Basis
for Proposed Emergency Currency.

II was near the end OF the day Whe1
the Senate took UP the Aldrch BIZ. sen
ator Simmons. OF North Carolina, had an
amendment reducing the tax on emerg-
ency currency from one-half OF ! per
cent per month 20 one-Quarter of per
cent for three months and One-halt OF
per cent after that time.
Senator Aldrich got Mr. Simmons into
something of a predicament by slyly ask
ing question. Mr. Simmons was reading
from document in support of his argu-
ment that the country banks could not
afford to pay the high taxes provided
In the bill. and that. therefore, the effect
of the bill would be to favor the banks
OF large cities.
Mr.. Aldrich was walking by. and he
inquired In the most off-hand way; Did
you know that the man who wrote that
pamphlet from which you are reading,
is the president Of the New York Clear
ing House2"
''No, l did not" admitted Mr. Simmons,
trife disconnected.
We'll. he is" said Mr Aldrich, pleas
antly. =
what if he is?'' cried Mr.. Simmons,
who had been interrupted at an anti
climax What il he IS? Does that bring
him into disrepute. and does that prove
that what he says against the Aldrich
bin is not true?"
Takes Fling at Banks.
mo; certainly not" the Senator from
Rhode Island answered. L only wanted
for the country banks was the argument
OF all banks"
Mr.. simmons again asked in what way
that discredlted the facts in the case
'Oh. merely in this way" was the an
swer. 'the banks do not like this bill be-
cause 1t is not a bin to make money for
the banks
| An hour OF debate followed the pro-
posal to fix interest on government de-
posits in national banks. Mr. Nelson. OF
| Minnesota. offered an amendment fixing
| the rate at / per cent. The chairman OF
the Finance Committee had agreed TO ac-
cept this amendment to his bill.
Clay Would Raise Rate.
Mr. Clay. of Georgia, attempted 70 make
the rate per cent. Mr.. Aldrich sug-
! gested that the committee had feared the
demands for the money at such a rate
would prohibit its use, and it would be
tied up in the Treasury. instead of being
diffused through the channels Of trade.
Mr.. Clay was sure from the experience of
Georgia that the demand for the money
would be ample.
Mr.. La Toilette supported Mr. Clay.
He was certain the banks could pay for
the money. and would pay for il, and IL
would be more widely distributed. To
this view, Mr.. Aldrich was entirely at
odds The very thing it would not DO
was 70 distribute il. but. on the contrary.
1t would place the money in the large
money centers-the very thing that the
Senators favoring the 2-cent rate did not
desire
! All the Democrats voted for the Clay
amendment and all the Republicans
against Il. The amendment was lost and
the l per cent amendment was passed.
1t leaves TO the discretion Of the Secre-
/ tary OF the Treasury the rate of interest
/ to be eXacted from government depOs-
| itaries, providing, however, that IL shall
not be less than l percent.
CulbersOn Gives Bill Sponsor.
Mr.. Lodge got in his amendment admit
ting Philippine and city OF Manila bonds.
A vote was taken under protest Of Sena-
/
wished to debate II further Mr.. Lodge
shrugged his shoulders and told them 10
go ahead and debate 1t was then after
6 o'clock. and becoming dark, and the
Senate was weary from an all-day
wrangle on another matter.
The chairman Of the Finance Commit
tee. to whom the amendment was re-
ferred yesterday reported II favoraoly.
II was passed. Mr.. CulbersOn took a part
ing shot on the provision for government
| deposits at a paltry interest New York
banks had $f7.OO0,O00 Of government
money. which it lent at 50 per cent 10 125
per cent during the panic, and yet the
| government got nothing for the use Of
the funds He said he made this state
ment Of the amount Of the deposit and the
use made of IL from statements made by
]. Pierpont Morgan. whom Mr. Culber-
son termed ''the sponsor Of the Aldrich
bill"
While you think OF Il, telephone your