The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1908-04-04
ALDDlCh Bill PASsF,
SENATE D'sPosEs OF FINAsc,.,
MEASURE AFTER IMPORT.
ANT CHANGES.
Vote Was Strictly on Party Lines.
thor Of Act Plans an lnvestis,,;,.
Into System Of Handling Menu
Throughout the Country With a Via.
to lnstituting Reforms.

washington. March 2S.-The Aldrieb
bill was passed by the senate yest.,
day by vote Of ~ to Is, party VT.
A vote was taken on the Bailey snh
stitute authorizing the government !,
stead Of the national banks, to ,ss,.
the emergency circulation for which
the bill provides. The vote on the snh
stitute stood AZ to 13, and this vo,.
was entirely partisan, even Se.ato,
LaFollette casting his vote witt tha
republicans. The bill has bee, \.
fore the senate since January 2, I'll.
vote was not reported until after Ga
M. and the galleries were practica,1v
empty.
An interesting feature of tia mas
sage Of the bill was a reiteratioa Nv
Mr. Aldrich Of his promise to brip. IN
bill for an investigation of the an.
tire banking system of the country
with view Of instituting reforms
AS passed, the bill provides for mt
more than $500,000,O00 of emergency
currency, to be issued to national
banks upon the deposit by them Of
state, county and municipal bonds, to
be approved by the secretary of the
treasury. The currency is to be used
with view of securing an eauab]e
distribution of currency over the Unit.
ed States, and in accordance with the
unimpaired capital and surplus Of
banks in each state.
To Pay Emergency.
Banks are to pay for this emergency
circulation one-half Of / per cent
month during the first four months it
is circulated, and afterwards three.
quarters Of per cent a month.
The bill provides that national
banks shall pay not less than per
cent on government funds deposited
with them.
An amendment by Mr.. LaFollette to
punish by from one to five years i'm
prisonment any Justification in bank
securities was adopted, but was pro-
tested against by Senator Knox as al
ready provided for by existing law.
Amendments Adopted.
Following is the text of the import.
ant amendments to the bill which were
adopted:
By Senator Johnston, Of Alabama:
That after January l, 1909, national
banking associations located outside Of
reserve or central reserve cities which
are now required by law to keep a re-
serve equal to Is per cent of their de-
post liabilities, shall hereafter hold
in their own vaults four-fifths Of their
reserves, either in lawful money as
national banks are required by law or
securities enumerated in section Q Of
this act, which shall have been ap
proved by the secretary of the treas.
ury; provided, however, that not more
than one-third of the reserves required
to be kept in the vaults of such asso
Citations shall be held in such secur.
ties.
By Senator Allison: Provided that
deposits under this section Of retire
notes secured by the deposit of bonds
other than bonds of the United States
shall not be covered into the treasury
as required by section 6 Of an act en-
Titled IAN act directing the purchase
Of silver bullion" etc., approved July
Ia, 1890, but shall be retained in the
treasury for the purpose of redeem
ing the notes of the banks making
such deposits.
Investments Guarded.
BY Senator LaFollette: No national
banking association shall invest any
part Of its funds or deposits in the
stocks or other securities of any cor
poration or association, any of the Of
ficers or directors of which are Of
icers or directors of such banking as.
ISOLATION. Any officer or director Of
any national banking association VINO
knowingly violates or consents to the
violation of the foregoing provision
shall be deemed guilty Of a misde'
meanor and shall upon convlction
thereof be imprisoned not less snaA
one year and not more than five years
BY Senator LaFollette: It shall Dc
the duty Of the comptroller OF tns
treasury to cause such reports OF no's'
in circulation to be verified by exan
nation Of the banks records and an!
officer Of any banking associanoh
falsely representing the amount OF 10
notes in circulation shall, upon cor
viction thereof, be punished by nn0
Of not less than 81 900 no more than