The Birmingham age-herald., 1908-03-26

~--~%~- ~-%~~~-~ the money.
 
 half of one per cent per month, and after six months at the rate of three fourths of one per cent per month. MT. Aldrich said this amendment would be &C., cepted by the committee, and it was agreed to. The amendment by MT. Lodge admitted bonds of the insular govern ment of Porto Rico as a basis for the emergency currency.
 Several amendments were proposed and laid aside. Among these were the amend nlents offered by MT. Lodge for the ac- ceptance of bonds of the Philippines, and the city of Manila among the securities for issuance of emergency currency; by Senator Nelson for the payment of inter est at not less than 11a per cent on de- posits of public money in national banks also by MT Nelson, repeating sections of the law giving credit to national banks for parts of their reserve deposited in other banks. Senator Aldrich promised that the committee would take up all amendments relating to bank reserves, and report tomorrow.
 Amendment Defeated.
 An amendment by MT. Hepburn requir- ing national banks to keep on hand not less than 15 per cent of their deposits as a reserve was defeated 5S to ?.
 Senator McLaurin offered amendments. all of which were defeated, by which he sought to make a government claim against failed national banks on account of the issuance of emergency notes subor- cinate to those of depositors, also provid- ing that no officer of a national bank shall be permitted to hold an office in any such banks, and providing that individuals should be allowed to receive iotes from the department on the same terms that the bills permit banks to se- ure emergency currency.
 Senator Nelson offered an amendment which was defeated allowing banks to make loans on farm mortgages.
 Senator Aldrich made another state ment relative to the appointment of a monetary commission in response to a question from Senator Owen, saying:
 ''It is apparent to me that recent events have shown an absolute necessity for talk ing up this question in legislative man. per and the preparation for that will be entered upon in the immediate future"
 AIdrIch's Statement.
 The discussion on Senator McLaurins . amendments served to bring out a state ment by MT. Aldrich in which he said he would never consent to taking away safe guards of national bank notes which had existed by act of Congress for 40 years, a government preference having existed for more than a century.
 Replying to a question by MT. McLaurin, MT. Aldrich said that while 1t was true that the governments guarantee would be great, yet various cumulative guar antees had been thrown about the cur rency in order that absolute confidence in it might prevail. He remembered time when the securities of the United States were not at par, and when tho bonds of Mississippi were not accepted in market places. He said the double liability of stockholders of the banks was 8 guar antee that the depositors would never lose anything on account of the govern ments prior claim. While the question of accepting Philip pine bonds as security was under con- sideration, Senator Teller spoke in oppo- sition to the proposition, passing his ob- jection on the ground that there would be no means of determining their value, and said:
 Philippine Burden.
 'T do not want to do anything that will tie that country to this. I want to see the islands cut loose from this coun- try. If we have war with Japan we will have trouble with them, as Japan will walk in and take them"
 Replying, Mir. Lodge argued that Con gress should not discredit the bonds is- sued on it's authority He contended that the bonds were practically similar to state and municipal bonds in this country, which were not acceptable for govern ment deposits of money in the banks.
 MT. Nelsons amendment providing that national banks should be authorized to loan upon farm mortgages led Senator AL drich to declare that for bank purposes the farm mortgage was the last thing that ought to be accepted.
 Several senators from the western states arose to defend farm mortgages as sec curities MT. Aldrich replying that he had no criticism to make to them as securi- ties, but merely wished to be understood in saying that they were wholly unfit to be used for banking purposes.