The Washington herald., 1908-03-26
Aldrich Bill Nearing End of
Senate Career.
RESERVES PROPOSITION IS UP
Johnston's Amendment to BE Con-
sidered-Change Proposed by Hey
burn Is Veted DOwn-Interest ON
Government Deposits Amended-Re-
committed to Committee.

IO-u6y.
The Senator from Rhode Island adhered
20 his determination TO insist that no
other business be considered until the
currency bill should have been disposed
OF. and aside from the reading of the
Presidents message and the introduction
OF few bills. the entire session yester.
day Was given to the consideration OF
the Aldrich bill. Several OF the amend.
/ ments were disposed OF. but the more
important ones went over until to-day
Senator Heyburns amendment propos-
ing TO compel all national banks TO keep
their reserves in their own vaults in
lawful money. and making the legal re-
serves OF all national banks IS per cen,
OF their outstanding deposits. was voted
down by an overwhelming vote. only Mr.
Heyburn and Senator Gore voting for the
amendment The objection TO the amend
ment was that it reduced the required
reserves OF the city banks below the
present requirement, and the Democratic
Senators, most OF whom favor an amend
ment to protect the reserves OF the banks.
voted against it with the Republicans.
To He Considered To-day.
Senator Johnston's amendment piopos,
ing to safeguard the reserves OF the So
called country banks viii be considered
to-day, and L is believed that II win be
adopted. Senator Nelson's amendment
proposing that the banks shall pay inter
est on deposits of government money also
went over until to-day.
Senator Lodges amendment 20 include
| in ha fonf
or bonds OF the insular government of
Porti Rico, was adopted on a closely di-
vided yea and nay vote. but a similar
amendment to include bonds Of the Phil
ippine government. including the friar
bonds and bonds Of the city Of Manila.
met opposition.
Mr.. Clay. of Georgia. asked II the bonds
we're guaranteed by the United States
government Mr.. Lodge answered IN the
I negative. They were in the same position
as bonds of a State or city. and were OF
the character of Territorial bonds
Senator Teller. of Colorado, told Mr..
Lodge emphatically that the Philippine
bonds We're not In the same position as
city or State bonds. and neither were
they OF the character Of Territorial bonds.
Doubtful About philippines.
NO one knows" said Mr.. Teller, what
the future OF those islands Is 70 be. no-
what the relation Of our country TO them
is to be. The people who bought the
/ Philippine bonds took their chances. and
it would be entirely against the principle
of this bill TO put the government in the
position of indorsing them"
Mr. Lodge replied that the government
Of the United States had indorsed them
TO similar extent. in that they were
authorized by an act Of Congress and ap-
proved by the United States government.
Mr.. Teller said that this amendment
had not come before the committee. The
/ committee had trimmed the bill so as 10
meet objections that would confront il
after il leaves the Senate. He was in
/ favor Of retaining railroad bonds. but
they had been eliminated ito anticipate
! opposition after the bill leaves the Sen
ate
Mr.. Aldrich said the Senator from Colo
rado was mistaken. This amendment had
been laid before the committee and passed
over
Mr.. Teller then remembered that the
amendment "came before the committee
and was rejected"
Mr.. Lodge persisted that the bonds were
OF equal standing with other municipal
and State bonds allowed in the bill for
emergency circulation. but he allowed the
amendment to be recommitted to the
Finance Committee
Nelson starts Conflict.
Senator Nelson. of Minnesota. stirred up
conflict Unexpectedly by Offering his
amendment requiring the government TO
exact interest or its deposits in national
banks. Senator Hopkins, OF Illinois, made
long argument against the proposal,
during which he was repeatedly inter
rupted by Mr. Nelson Mr.. Hopkins said
that the government bank deposits were
the peoples money, and the purpose of
the deposit was to make it accessible 70
the people by distributing It in bank de-
positaries throughout the country. If in
| terest were charged thereon it would
raise the rate OF interest to the people.
who borrowed from the banks.
Mr.. Nelson asked if the banks separated
government funds from other money on
deposit.
"Of course they do not replied Mr..
Hopkins. but having the government
funds on deposit, they can afford to lend
money at lower rate of interest"
And are the banks eleemosynary insti-
tutions." asked Mr.. Nelson, doing what
they can afford to do for the benefit OF
the public?'
Again Mr.. Nelson inquired what irfor-
nation the Senator from Illinois had
showing that the banks lent the money
of private depositors at one rate Of inter
est and the money Of the government at
another. Mr.. Nelson added that since
he seemed 10 get no encouragement from
the Finance Committee. he thought lis
amendment was going to a graveyard
and he would withdraw It.
Mr.. Aldrich interpOsed 10 assure Mr..
Nelson that the Finance Committee would
give his amendment careful attention. and
1t was allowed TO go over.
Ovcrman Wants Commission.
A commission to investigate the recent
panic, and also the banking and currency
system, was provided for in an amend
ment offered by Senator Overnan. of
North Carolina.
The duties OF the proposed commission
are to be far-reaching. 1t viii look into
loans made by national banks 20 brokers
operating on stock exchanges, and ex-
anime the collateral accepted for the
loans. 1t is to search out financial abuses
in the relations Of the bank and stock
exchanges. and delve into the system Of
trading on margins.
1t is also to learn the financial needs
of the country at different seasons and
give attention especially to the reouire-
ments OF the country in moving the crons
IT provides for commission OF fifteen
five Senators, five Representatives and
i've others, to be appointed by the Presi-
dent. No more than three of each grol,n
OF fiye shall be members of the same
political party The salary of the COM
niSSiOners shall he Se2S q rnortl, 80 ,. =