Waterbury evening Democrat., 1908-01-09
FIGHT ALDR|CH BILL
Currency Measure Develops 0p-
 position In the Senate.
BAILEY DOES NOT FAVOR IT,
Telegrams Pour Into Upper Congress Declaring New York Will Benefit to Exclusion of Rest of Country-Fow- ler's Bill For Asset Currency.


 Exclusion of Rest of Country-Fow-
 ler's Bill For Asset Currency.
 Washington, Jan. 9. Considera ble opposition to the Aldrlch financial bill is developing in the senate. In addi- Tion to the Democrats, who are lining up in almost unanimous antagonism, a number of western Republicans are not in favor of it's provisions.
 Letters and telegrams are beginning to pour in from the west protesting against the Aldrch bill. The writers contend that after it's passage none but New York banks would be able to profit by it's enforcement.
 Senator Bailey, member of the committee, does not approve of the Aldrich bill. "The $250,0O0,00O emer- gency currency" he said. lis wholly inadequate. The amount should be more nearly S1,O0O00O,O0O. do not approve of railroad bonds as security. Railroads go into the hands of receiv- CTS too frequently"
 Representative Fowler, chairman of the house committee on banking, said. "To decide to make all kinds of bonds the basis of currency would be just as serious and fatal a mistake as to have adopted silver as our standard of val ue."
 Senator Heyburn has offered a bill requiring banks to hold 20 per cent of their deposits as security for depos- itors. This indicates difference of opinion among the Republicans. Other western Republicans, it is said, will doubtless heed the warning of their constituents and object to the security feature of the proposed measure.
 Senator Culberson has introduced bill requiring national banks to hold the legal reserve provided by law for the benefit of deposit0rs. This is sim liar to the Hepburn bill and indicates that there are views held by the Re publicans and Democrats in common.
 Senator Aldrich has gone to New York to explain to the financiers there that possibly some changes may be necessary in his bill. It may be es- sential that railroad bonds be elimi- hated from the suggested securities available for emergency currency. 9th CT notifications may be forced by a combination of western Republicans and Democrats.
 The subcommittee of the house conn mittee on banking and currency is ready to report to the full committee financial bill drawn in the main by Chairman Fowler. It will be intro. duced by Mir. Fowler and referred to his committee, where it will form the working basis for the framing of bill of possibly the same tenor and scope.
 It provides for the complete retire ment of all present outstanding ma tional bank bond secured currency and authorizes in lieu thereof a cur. rency based upon general assets of the bank. to be worked out in this way:
 The comptroller of the currency will designate throughout the country cer. tain redemption cities within at least twenty-four hours reach of every na. tional bank. Each bank in a district will be entitled to one vote, and they will elect a board of seven managers, who in turn will elect a deputy comp troller of the currency to assume con trol of that redemption district, except that he shall not have charge of the of the criminal statutes.
 The banks are authorized to present to the secretary of the treasury na tional bank notes and lawful moneys in lieu of other national bank bond SC. cured outstanding notes and will re ceive guaranteed credit notes to the amount of their capital stock. These notes will be subject to a tax of pei cent per annum.
 Each bank will be required to de posit as a guarantee fund with the | treasurer of the United States ! per | cent of its average deposits for the preceding twelve months and | pei | cent of the credit notes which 1t takes out. These will create a national guar anty fund. eventually to reach $500. | DO0.O0O. for the guaranty Of both the deposits and the outstanding bank | notes of every national bank. Eighty | per cent of this fund is to be invested in United States bonds drawing per rent in interest. while the remaining 1O per cent Is to be deposited in banks Df the various redemption cities for he purpose Of redeeming the Guaran. ieed credit notes of the banks
 The government is required to re- turn to the banks the United States pond. 1t holds as security for federal deposits. the object being to enable he banks to get control 0f the bonds .O the government can invest the So Der cent of the guaranty fund in 2 per ,ent bonds and regain control.