The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1908-02-07

Washington, Feb. 4-Senator Bailey
today introduced his bill providing fol-
the deposit of public moneys as a
means of relieving financial stringen-
cies and the acceptance of promiscuous
bonds as security for such deposits
The bill a been considered by the
minority as a measure behind which
they may possibly gather in the COM
ing debate on the Aldrich bill. Save for
the addition except those located in
central reserve cities, to keep at least
two-thirds Of their reserves now re-
Quired by law in their own vaults, the
bill is the same which Senator Bailey
offered as a substitute for the Aid
rich bill in the committee on finance
before the latter measure was reported
to the senate.
The main section of the measure is
as follows:
That whenever in his judgment
business conditions may require it, the
secretary of the treasury shall deposit
in banks which have already been or
which may be for that purpose desig-
mated as depositaries Of public money,
five hundred million dollars, or as
much thereof as may be necessary and
proper. The deposits herein authorized
shall be secured as provided in sec
ton two of this act and shall be ap-
00rtioned among the several states
in accordance with their population as
ascertained - the preceding census of
the United States, and the deposits for
each state shall be made among the
several depositaries in that state as
nearly as possible in proportion to
their capital and surplus. The term
business conditions as used in this
section of this act, shall be under
stood to mean business conditions in
all the United States or in one or nor
of the several states; but whether the
emergency contemplated in this act
shall exist in all Of the states or only
In one or more of them the secretary
of the treasury shall not deposit in the
depositaries of any state a greater sum
han the depositaries of that state
would be entitled to receive if the
business conditions of all the United
States required the deposit Of the total
sum of five hundred million dollars"
Then, as in the Aldr1ch bill, follow
provisions giving the secretary of the
treasury authority to accept bonds 9TH
er than bonds of the United States as
security for deposits, and prescribing
the interest that shall be paid on de-
posts.
The rate proposed in the Bailey bill
is one half Of one per cent per month
for the first six months ana three
fourths of one per cent. per month
thereafter.
Senator Bailey said that he intro
duced the measure at this time mainly
to supply demands for copies which
have been pouring into New York
from all over the country. He said he
would otherwise have waited for sug-
gestions 0v his colleagues for additions
to the bill.
THE SENATE.
The senate today passed the urgent
deficiency bill. carrying an ~appropria-
ton Of over $24, 900, COO.
The large deficiency appropriation
for the navy brought out considerable
discussion of the subject of executive
departments making expenditures not
provided for in appropriations.
Deficiency appropriations for the
! Panama canal gave Use to democratic
criticism of the publication of a paper
by the canal commission at Panama,
incidentally Senator Teller declared
! that he believed that the lock canal
at Panama would some day be declared
a failure and that q sea level canal
would take its place.
The senate devoted two hours to
consideration of the criminal code bill
and at APO p. m adjourned.
The sections of the urgent deficiency
appropriation bill relating to executive
departments was reachd in the senate
today, Mr.. Macon, of Georgia, inquir-
ed concerning the operations Of the
law prohibiting executive departments
from mourning liabilities for which ap-
preparation is not made
Mr.. Hale explained that the law IF
1906 had made such 4 prohibition, but
lie added there is an exception in favor
of the war department and navy de-
partment. This exception he hoped
would also be done away with.
Senator Clay, Of Georgia, condemn
ed the appropriation of between s4.-
600, 900 and S., O0O, 900 for the navy de-
partment in this biz for purposes not
provided for by law.
Mr.. Hale declared that there always
had been deficiencies and that there
always will be. He regarded them as
inevitable.
Mr.. Clay persisted in his opposition
and said he would not be surprised
10 see the appropriations for the navy
reach SITS, O00. 900 annually, according
to the rate of increases going on now.
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