The Montgomery advertiser., 1908-03-28
ALDRICH BILL 7 PASSES SENATE 7- Bs.N Sub is Voted 4; Down. MANY AMENDMENTS OFFERED Amendment of Senator Johnston
 Is Accepted. senator Nei.on's Amenamens Havias Fer the Guarantee of Bank De- posits by the Government.
 was Defeated
 

Washington. March z7.--The Aldrtch currency bill was passed by the Sem ate today by vote of 42 to 16, In the strict party vote.
 Previous to taking of the vote on l the Aldrlch bill. vote was taken on l the Bailey substitute. authorizing the government, Instead of the national banks, to issue the emergency circula- tfon for which the bill provides. The vote on the substitute stood 4S to 13 and this vote was entirely partisan, even Senator LaFollette casting his vote with the Republicans. The bill has been before the Senate since Jam uary 3. The vote was not reached un- til after 6 p. m.
 An interesting feature of the pas sage of the bili was a reiteration by Mir. Aldrich of his promise to bring in a bill for an investigation of the entire banking system of the country with . view to. instituting reforms. As passed. the bill provides for not more than s500.00o.0o0 of emergency currency to be issued to national banks upon the deposit by them of State. County and municipal bonds to be ap- proved by the Secretary of the Treas proved by Secretary of the Treasury. The currency Is to be Issued with view of securing an equitable distribution of the currency over the United States, and in accordance with the uninpaired capital and surplus of banks In each State. Banks are to pay for this erner- gency circulation half of per cent q month during the first four months 1t is circulated. and afterwards threo- fourths Of l per cent month.
 The bill provides that national banks shall pay not less than per cent on government funds deposited with them.
 AS to Bank Reserves.
 As amended today the bill carries an. important change in banking laws re- lattng to bank reseFves This amend ment provides that of the IS per cent, reserve required to be kept by banks ba kent In the vaults oe the hanks and of that amount. one-third can be in the form of securities of the kind re- quired.
 By another agreement agreed to Eo- day. the period during which half of per cent interest is to- be charged was reduced from six to four months, after be charged until redeemed. At the in- stance of Mir. LaFoilette. an amend ment was adopted prohibiting any na- tlonaa bank from investing it's funds in stocks or other securities of a cor poration, the officers or directors of which are officers or directors of the bank and providing a penalty of im-
 
 The proposition to insert provision for a government guarantee of deposits in national banks was defeated by a vote of II to 46.
 An amendment by Mir. La Toilette to punish by from one to five years imprisoument any Justification in bank securities was adopted.
 Senator Teller offered on request or Senator Bailey. of Texas. who was absent. the substitute curerncy bill of the Senator from Texas. which he stated was in the main similar to the Aldrich bill with the difference that 1t provided for government instead of bank paper and asked for . roll call. The vote was 15 to 42 against the bill.
 When the vote was taken on the Aldrich bill. Senators Teller and Johns- ton (Dems.l explained their reasons for voting for the measure and Senator Overman his reasons for opposing it. Mir. overman spoke in part as fQl- lows:
 "The AIdrich bill does not get at the root of the trouble. but only adminis- ters to the diseased surface, It is a patch: 1t Is thin patch upon the crazy quilt of our monetary system salt solution for use only when death is imminent or an emergency comes.
 Msnstrous Proposition.
 What avail would this bill have been, what relief would 1t have been to the country banks in October lastg The country banks do not own state. county railroad or municipal bonds. They only bear three or four per cent interest and the banks cannot afford to own them when they can loan every dollar they have at six and eight per cent These bonds generally go to the great money centres and are held by savings banks, insurance and trust companies and the great national to say that the banks would have taken Si0O.0o0 and more of currency from their vaults to purchase bonds and get in return only $T5,000 to $90.- 900 in high taxed money"
 Following was the vote on the pas sage of the bill:
 Yeas. Aldrich Ankeney, Boveridge, Brandegee Burkett. Durham. Burrows. Crane, Cullom. Curtis. Depew, Dick, Dillingham;. Dixon. Deliver. Dupont. Elklns, Flint, Frye. Gallinger, Gamble, Guggenheim. Hopkins, Johnston (Dem.D Kean. Knox. Lodge. Long, McCumber. Nelson. owen (Dem.) Perkins Piles. Richardson, smith of Mich; Shoot. Stephenson. Sutherland, Teller (Dem.) Warner, Warren and Wetmore--total a2
 Nays: Bankhead. Borah (Repn.J Bourne, (Repn) Brown (Repn) Cul- person, Frazier. Gary. Gore, Hepburn. (Repn) La Toilette (Repn) McCreary, McEnery. McLaurln, Overman. Paynter and Taylor-Total 16.
 Following is the text of important amendments to the bill which were adopted today
 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 6 reserve equal to fifteen per cent or their deposit liabilities. shall hereafter hold in their own vaults four-fifths of | such reserves. either in lawful money l as now required by law or in the | securities enumerated in section 2 of | this act. which shall have been ap- proved by the Secretary of tine Treas ury: provided however. that not more | than one-third of the reserves re- quired to be kept in the vaults Of l such associations shall be held in such 1 securities.