The San Francisco call., 1908-05-28

SlncE eUCy ODllSdttOuS SoiiCSe-
ed in ordinary times and required a
categorical answer.
Mo- replied Burton, emphatically.
The proposition covered by the bill
of the conferees, Cochran said,
narrowed down to the fact that banks
whose business was that Of discounts
should take money from their deposi-
tors and hold II and enter the field into
which no bank ever yet entered with
profit to its depositors or with safety
to a commercial system and that was
to engage IN the business of invest
ment"
POLITICAL EMERGENCY
The minority leader Williams. took
the floor for three minutes. Address
ing the speaker. he said that the gen.
tleman never was so highly honored
in all his life as he was today. The
bifi,' he said. ought to have been en-
titled 'the Cannon Aldrich political
emergency BILL
The debate was brought to a close
by Burton, who began by saying that
the incompetency of the democratic
party to rule the people was never
more emphatically displayed than by
its course in connection with currency
Legislation.
+ Discussing the financial crisis of last
fall. Burton characterized it as fear
/ full, causing the mightiest financial
institutions to rock as II they would
| fall The wheels of industry and COM
! merce were clogged and hundreds and
/ thousands were thrown out of en-
ployment. he said. Men who had
walked with heads erect and who were
proud were compelled to beg in the
streets for bread. Much of the cause
of that distressing condition he laid
lat the door of the rigidfty and insult
1cieney of the currency system of the
country. He declared that the repub-
flicans, against the solid opposition of
l-ti4e- democratic party, were determined
| to do something so that such calami-
fty might not occur again.
The vote was taken and the confer
| ence report was adopted, 166 to lao.
The democrats voted solidly against
the report and they We're joined by the
following IA republicans: Cooper,
Morse and Wilson of wisconsin
Brumm of Pennsylvania; Fowler of
! New Jersey; Hill and Henry of Con-
necticut; Linberg Of Minnesota; Muir
| sas; Prince of Illinois; Waldo of New
York and Darragh of Michigan.
THE BILLS PROVISIONS
The republican conferees decided on
the following provisions to be carried
| in the compromise bill, retaining the
pasic principles of the Vreeland bill
and adding thereto from the Aldrich
bill:
F The reserve required to be retained
lin central reserve and reserve cities is
10 per cent straight A redemption
fund of 10 per cent instead of 5 per
cent required by the present law, is
stipulated, and all of it shall be held in
Washington. The emergency currency
! issuabIe shall not exceed in the aggre-
gate $500. 100000. Such currency shall
be subject to retirement tax of per
cent for the first two months and an
additional / per cent per month there
after until 10 per cent is reached. State
county and municipal bonds shall be
acceptable as security for emergency
t.currency at 80 per cent OF their market
value. Other bonds and commercial
paper shall be similarly acceptable al
t75 per cent of their market value. Nc
4 bank shall be allowed to take oui
| emergency circulation in an amount
excessive of 80 per cent of it's capita
and surplus when the security offered
lis, commercial Paper No emergency
currency may be taken out under any
| circumstances unless the obligan-
| bank has already taken out, according
Ito the present law, an amount of eur.
i,rency equal to 40 per cent of its capita.
/ stock and surplus. The provision in the
/ Aldrich bill is incorporated in the con-
ference bill that banks which hold
state, county or municipal bonds may
with the approval of the secretary ot
/ the treasury, take out additional cur
I rency directly upon them up to 80 pei
l,cent of their market value-that is