Waterbury evening Democrat. [volume] (Waterbury [Connecticut]) 1903-1917, 1908-01-30
ALDRICH'S BILL
Despite Several Amendments
The Document Has Not
Been Changed Much
WHAT IT CALLS FOR

Washington, Jan. 3G.--Ths AL
drich financial bill, which has been
in the hands of the committee on fin
ance since its introduction in the
senate on January Z, was reported by
Senator Aldrich to-day. The various
amendments which have been pub
lished from time to time appear in
the bill, although in general charac-
ter the bill remains the same as when
introduced. There has been an effort
on the part of the committee to en-
phasize the emergency nature Of the
act that is proposed and to this end
various amendments are inserted in
the bill which are intended to cause
speedy issuance of additional cur
rency when stringency occurs. The
following amendment is inserted in
the first section of the bill in lieu Of
the provision which gave the comp
troller of the currency power to fix
the time and amount of issues, when
application is made, according to his
judgment and at his convenience:
THE comptroller of the currency
shall transmit Immediately the appli-
cation, with his recommendation, to
the secretary of the treasury, who
shall, if in his judgment business
conditions in the locality demand
additional circulation, approve the
same, and shall determine the time
of issue and fix the amount, within
the limitations hereinafter imposed
In order that the distribution of
notes to be issued under the provision
of this act shall be made as equitable
as practicable between the various
sections, of the country, the secretary
of the treasury shall not approve ap-
plications from associations in any
state in excess of the amount to
which such state would be entitled
of the additional notes herein au-
thorized on the basis of the proper
tion which the unimpaired capital
and surplus of the national banking
associations in such state bears to the
total amount of unimpaired capital
and surplus of the national banking
associations of the United States. Pro-
vided, however, that in case the ap-
plications from associations in any
state shall not be equal to the
amount which the associations OF
such state would be entitled to un-
der this method of distribution, the
secretary of the treasury may, in his
discretion, to meet an emergency, as
sign the amount not thus applied for
to any applying association or asso-
Citations in states in the same section
of the country" .....
The clause of the original bill fix
ing rs per cent of the market value
of all municipal and railway bonds
as the limit Of the issued of notes
against them has been amended so
that railroad bonds alone are tc be
taken at 10 per cent of their market
value. Notes may be issued against
deposits of municipal and county
bonds up to 80 per cent of their mar
ket value.
The limit of circulating notes that
may be issued under the act has been
raised from $250,000,000 to $780,
100000.
The section of the bill relating to
the acceptance of interest-bearing
obligations or any legally authorized
bonds of states, cities. towns and
counties as deposits for the security
of additional bank currency issued
against them. has been broadened
considerably by amendment The
words "or other legally constituted
municipality or district" which have
been. added. are taken to mean that
bonds issued by school districts and
townships will be acceptable provid.
ing they conform to requirements
specified. The population of these
municipalities is fixed at 10000 in
stead Of 10000 as originally propos-
ed.
An amendment makes it the duty of
the secretary OF the treasury to OBJ
tain information with reference toI
the value and character of the NUM-
cipal and railroad securities author
lied to be accepted under the proyi
sions of the act, and he Is required
from time to time to furnish informa-
tion to national banking associations
as to such bonds as would be accept.
able as security. To the end that in
concerning railroad bonds
may be gathered with some degree of
accuracy, the clause of the bill relat-
ing to the acceptance OF railroad
bonds as security for note issues is
so as to include only the
bonds of roads which comply with
the existing law In reporting state
ments Of their condition and earnings
to the interstate commerce commits |
sion.
The provision in the old bill requir-
ing a memorandum on the back OF
each bond showing that the legal
title OF the same had passed to the
treasurer of the United States in
trust. has been stricken out and Il
has been made the duty Of the secre-
tary of the treasury to prescribe reg
ulations for conveying title.