The semi-weekly messenger., 1908-02-04

ing Bill Adopted by Committee ON
Finance.
"asS Angton. January so. 0.-The
senate To-Day held q snort session
during which Senator Aldrich re-
ported his banking bill from the
coTar.ittee on finance which he an
slderation on Monday. Februaly y
10th At l o'clock p. m the senate
adjourned
Senator -Aldrich. chairman of the
tsenate committee on finance today
faVorably repOnted his bill PROVIDING
for an emergency increase in the ma
tional bank circulation. The report
was authorized at n meeting OF the
committee held today Ut which ali
the republican members present
voted for a resolution authorizing the
reporting Of the bin and all the demo-
Gratis voted for the Bailey substitute.
Senator Hansbrough. who favors a
lcential bank scheme was not present
and his vote was urrecorded. The
only democrats in attendance were
Senators Teller. Bailey and Daniel
Senator Ialiaferro who is absent in
Florida, was recorded as for the
Bailey substitute. Senator Money
also was absent. and his vote was un-
recorded. MI Aldrich said he would
ICdll ~ llo VIII 1CI COISluSIdllOn OH
monday. February 10Th.
| Various ar1tn ndments which have
been published from time TO time
Iaprear in the BIZ; although in gem
Ierai character the bill cemalns the
Isame as when introduced. There has
been an effort on the part of the
committee to emphasize the emer-
gency nature Of the fact that is pro-
posed, and to this end various amend
ments are inserted in the bill which
are intended to cause speedy 1SSU
ance Of additional currency when a
Istringency occurs. The following
amendment is inserted in the first
section OF the bi'l in lieu Of the pro-
vision which gave the comptroller
and the amount Of issues when appI-
cation is made, according to his
judgement and at his convenience.
The comptroller Of the currency
shall transmit Immediately the appI-
cation with his recommendation to
the secretary Of the treasury who
IShall, ii in his judgment bnusiness con-
ditlons in the locality demand addi-
tional circulation, approve the same
land shall determine the time of Is
sue and fix the amount within the
limitations hereinafter imposed of the
additional circulating notes to be is
sued In order that the distribution
Oh HOleS LO nc lSSlSu tlIIS! IiIS IN
visions of This act shall he made as
leQuitable as practicable between the
various sections of the country, the
ISecretary of the treasury shall not
approve application from associatio MS
in any state in excess of the amount
to which such state would be entitled
of the additional notes herein au-
tthOrized on the basis of the proper
ton which the unim paired cash and
surplus of the national banking as
tsociatiOnS In such state bears to the
total amount of unimpaired cap1tal
and surplus of the natiOna! banking
associations Of the United States
prov ided however, that II: case the
application from associations in any
state shall not he equal to the
IamOunt which the associations ot
lsuch state would be entitled to under
this method of distribution, the Sec
retary of the treasury may in his dis
erection to meet the emergency, assign
the amOlnt net thcs applied for to
any applying association or associa-
tions in states in the same section or
the county"
The cause of the original bill TX
ing Is ner cent of the market Value
of the municipal and railway bonds
as the limit Of the issue OF notes
against them has been amended SO
that railroad bonds alone are to be
value Notes NAV be issued against
deposits OF municipal and county
bonds uD to 80 per cent. Of their
market Value.
The LIMIT Of circulating rotes that
may lie issued under the act has
been raised from $25O,OOO,O0O 10
$500 900. eco. The section of the bill
relating to- the acceptance of inter
est bearing oblig atoms or any legally
authorized bonds OF states, cltleE'
Towns and counties as deposits Tor
1.-THE security of additional hank cur
rcncy issued against them has heeh
broadcned considerably by an1eno
ment he words or otner F51
constituted municipality Of district
which have been added are taken To
mean that bonds issued by school, dis
tricts and townships viii De accept
able rrovi1ing they conform TO re-
ouirer?ents specified. The population
; of these municipalities is fixed by the
reported i.ill al 10000 instead OF ~
; 900 as originally proposed.
There L. an a1.fnC-n"nt max "a
| tna CTtv of the secretary OF the treas
Iurr to obtain Information villa re
once to the value and character of the
: muricipal and railroads securlles
. authorized to be accepted. ana n"
is required TO furnish Information q
national ianking associations as tc
srch bonds as would he acceptaole
as security The clause relating 'c
tho acceptance Of railroad uon1s n
security for note issues, IS alnenhed
so as tn include onD the bonds o'
/, roads which comply with the eNFune
. law in reporting statement; or then
conditions and earnings to the III
/: terstata commerce commission
, The provision of TIE originaI nil
relating 10 the preparation OF circu
lating notes in blank tn an amoun
equal tn so per cent of the capita
stock OF a hank requesting an 1ssr
ance has been changed so that IL
mandatory upon the comptroller .