Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-02-12
IN THE SENATE.

| Aldrlch currency bill was begun in the
| Senate today and was followed with
interest by many bankers who occupied
seats in the galleries. Among them
were J. Pierpont Morgan, of New York.
| The discussion of the measure was ill
rected chiefly toward the provision for
railroad bonds as a basis for emer-
gency circulation, wide difference Of
opinion being developed concerning Ike
method that should be adopted in de-
| terminng the valuation to be given
such bonds as well as opposition to
| the use of such security under any
| terms.
The bill was finally read through
and committee amendments were in
corporated in the bill, it being under
stood that the entire bill is to be sub
ject to amendment hereafter.
The Senate at 5.04 P NJ. all ID
Washington. Feb. n.-Senator -lldrich
today called up his currency bill and for
NAL amendments made by the finance
committee were adopted by the Senate.
Senator Bukett of Nebraska inquired
concerning the provision for the distribu-
ton of funds by the secretary of the
the currency provided should not he need
ed in one state it Should be apportioned
to another state in the same section of
the country.
Senator Dolliver asked whether the pro-
vision in respect to railroad bonds as Sc
curtv for currency circulation would in
clude bonds of roads other than those op-
Grated by steam.
Mr.. Aldrich replied that If the roads are
interstate roads and make reports to the
interstate commerce commission they
would be included.
Mr.. Bailey said there was. in his opin-
ion. no doubt that this bill does exclude
intcr-urban electric roads. He said the
recently enacted rate law. in his opinion.
did not require any roads except the
steam roads to report to the interstate
commerce commission.
The suggestion was advanced by the
Rayner case that there had been re-
cent discussions to the effect that cleo
trio roads come under the rate law.
He objected to the use of railroad
bonds of any description as security
for bank circulation.
They are going in, however" de-
CltI Gu idIlcN Lie INtPuDIItSiAS Aio We
the majority and the power to do SO
ard they will put in railroad bonds.
The Democrats have made no captious
opposition to this bill. They have TAX
en- the position that if they would not
make the bill just what it should be.
they will make it as good as possible
and then reserve the right to vote for
or against it as they saw fit-becauSe"
he added with emphasis, "this is not
a party question and it should not be
made party question" Bailey said it
was desirable that the railroads of the
South receive a share of the benefits
to be derived from this measure. In re-
ply Aldrcll said the finance committee
had under consideration notifications
of that Fart Of the bill
In answer to a question by Culberson
as to the methods to be employed by
the secretary of the treasury in de-
termining the market value of the
bonds, Aidrich said that they were ali
quoted on exchanges and he thought
there would be no difficulty on that
score.
Lafollette had read amendments he
intends to offer They provide that NJ
for security for currency unless the
| face value and cost of reproducing the
railroad shall have been ascertannd
| by the Interstate Commerce Commits
! sion and currency issued on such
bonds shall not be more than Is per
cent of the physical value of the road
on which the bonds are based.
| Daniel offered an amendment providing
! that bonds of railroads that have paid
| regularly an continuously for five years
next preceding the deposit of its bonds
the interest due on all its bonds" can be
used for currency issues. That amend
ment, he said. would allow the use of
bonds OF roads that have not paid divi-
dends on stock. This would permit the
use of the bonds Of a number Of South
ern roads which are now excluded.
Upon the suggestion of Aldrich. Dan
iels' amendment was referred to the fl.
nancial committee.
Bailey entered upon extended remarks
concerning the banking system of the
country.
"1hc time will come" declared Bailey.
when our money can be based upon the
credit and issued by the government" He
believed in paying off the government
debt and did not want any currency sys-
tenn that required a public debt to make
it operative
Bacon asked whether territorial bonds
had been considered by the finance COM
mittee as proper to be used for security
for currency issues. Aldrich said such
securities lad been discussed and would
receive further consideration.
| All committee amendments were then
| incorporated in the bill except those de-
claring the valuation to be fixed by the
secretary of the treasury of bonds to be
accepted as a basis for currency circu-
lation and the provisions in relation to