The San Francisco call., 1908-03-26
ALDRICH ACCEPTS
TWO AMENDMENTS
Interest Rate on Emergency
Currency Will Be Agreed
Upon
Porto Rico Favored Above the
Philippines in Matter of
Securities

WASHINGTON. March z5.-A good
deal Of progress was made by the
senate today in disposing of pro-
posed amendments to the Aldrich cur
rency bill. The amendments reported
by the committee were all adopted
without opposition, and then one SEN
ator after another offered additional
amendments, which. except in the case
Of one proposed by Senator Dupont
and one BY Senator Lodge. were voted
down.
Senator Duponts amendment pro-
yided that during the 1rst six months
the emergency currency is out inter-
est shall be paid al the rate OF one
half OF I per cent per month. and af-
ter six months at me rate OF three
quarters OF per cent Mr.. Aldrich
said this amendment would be ac-
cepte0 by the committee and il was
agreed 20. The amendment by Lodge
admitted bonds OF tac Insuiar govern
ment Of Porto Rico as a basis for the
emergency currency Several amend
uents were proposed and laid aside
upon the statement by Aldrich that
she committee would take them up
and report to the senate tomorrow.
Among these were the amendments
offered by Lodge for the acceptance OF
bonds Of the Philippine islands and
the city OF Manila among the secu-
rites for the iss uance OF emergency
currency: by Senator Nelson. for the
payment OF interest at not less than one
half of per cent on deposits OF public
money in national banks. also By Nell
son. repeating sections Of the law Civ
ing credit 70 national banks for parts
Of their reserve deposits in other banks.
Senator Aldrich promised that the
committee would take up all amend
ments relating 10 bank reserves and
report tomorrow.
An amendment by Hepburn. reouir-
ing national banks 10 keep on hand
not less than IS per cent Of their de-
posits as reserve, was defeated. 5S
10 2
senator Nelson offered an amend
ment. which was voted down, allow
ing banks 10 make loans on farm
mortgages
All the amendments were discussed
at length. but in the main the debate
was along lines which have been trav-
ersed during the general discussion OF
fhe bill There were. however, some
exceptions. and one Of these occurred in
connection with TIE AicLaurin amend
ment The discussion served to bring
out 2 statement by Alorich regarding
the security afforded under the terms
Of the bili
Aidrich said he would never con-
sent 10 taking away safeguards OF na-
ffonaI bank notes wbich lad existed
bv act Of cons gress for 20 years. q gov
eminent preference having existed for
more than a century.
While the question Of accepting Phil
ippine bonds Is security was under con-
sideration Senator Teller spoke in op-
position TO the proposition, basing his
objection on the ground that there
would be no means Of determining their
value. and in this connection spoke
somewhat Of the relations OF the Phil
ippine islands 10 the United States,
saying:
I do not want TO DO anything that
will tie that country 10 this.
7 want to see the islands cut loose
from this country. If we have war
with Japan we viii not have trouble
with them. as Japan viii walk in and
take them.
Replying. Lodge argued that con-
gress should not discredit bonds issued
on its authority. practically similar 10
state and municipal bonds in this coun-
try which are now acceptable as secur-
ftv for government deposits OF money in
.be banks. Nelson's amendment pro-
vidfng that national banks should be
authorized TO loan upon farm mort
cages led Senator Aldrich TO declare
j. that for banking purposes farm mort
cages were the last thing that ought to
be accepted as a basis for currency.