The Washington herald., 1908-01-28
ALDRICH BILL READY
Committee Will Consider Re-
viSed Version To-day.
SECURITIES TO BE CLASSIFIED
Secretary Of the Treasury Author
lied To List Ali Glasses Which Are
Made Collateral for Proposed
Emergency Currency Democrats
May Not Offer Substitute Bill.

/ The revision OF the Aldrich currency
/ bill was completed yesterday by Senators
1 Aldrich. Allison. and Hale. When the
committee on finance meets to-day. after
| a recess taken week ago to enable Sem
ator Aldrich to incorporate in the bill
several amendments which had been sug
gested by both Republicans and Demo-
rats. the completed measure viii he pre-
sented. and will form the basis for final
/ discussion before it is reported TO the
Senate.
Most OF the changes which will be made
| in the Aldrich bill as result of the COM
mittee discussion have been explained
heretofore in The Washington Herald. A
new amendment contained in the draft
! OF the revised bin 10 be considered by the
committee to-day was suggested by SEN
atOr Bailey, one Of the Democratic lead
ers. II provides for an equitable distri-
button Of the circulation authorized by
the bill. and was the outcome of appre-
hension on the part Of Senators from
States which have much sparsely settled
territory that New York, Chicago, and
]
a practical monopoly Of the issue of
emergency currency through their ability
to control most Of the bonds which banks
must obtain and deposit in the Treasury
as collateral for the issue of additional
circulation
AlIOts Currency by states.
Senator Bailey did not submit his
amendment IN writing so it was drafted
by Senator Aldrich and incorporated in
the revised bill Under this amendment
the country is not divided into sub
treasury districts, as was proposed by
Senator Bailey but each division COM
prises a State OF the Union. whose ma
tional banks are TO be- entitled to take
out emergency circulation proportionate
to the total capital and surplus of the
national banks ia that state The Re-
publican members OF the Finance Com
mittee have approved this amendment as
drawn by Senator Aldrich.
Several new amendments are designed
TO provide for an issue OF emergency cir
culation with the least possible delay In
The Adrich bin, as presented originally TO
the Committee on Finance il was pro-
vlded that subueasuries should hold in
reserve the emergency circulation notes
only OF such banks as requested that
they be printed, and So held subject TO
call
One OF the revised amendments requires
the Secretary of the Treasury 10 prepare
and keep on hand in the subtreasurics
printed notes of all the national banks in
each suhrcasury district Under this
provision q bank which had not contem-
plated taking out any emergency cirCuIa-
uon. and suddenly desired or felt COM
PEELED 10 do so. Will not he required TO
wait until the notes can he printed and
transmitted 10 it through the nearest sub /
treasury.
Authority on Securities.
The Secretary Of the Treasury is di-
reeted also by one Of the new amend
ments 20 pass upon the stability Of the
several classes OF unofficial securities
that may be used as collateral for cir
culation. To avert delay through an in
quiry as to the stability Of these securi- /
ties in times Of financial stress, the Sec /
Tetary Of tho Treasury will be required /
to have all such securities classified inn !
medi1tely upon the passage Of the act.
The important change in the bin |
heretofore reported in The washington |
Herald provides that bonds of counties /
and cities without regard 10 the num- /
her Of inhabitants i'm these counties /
and cities as originally provided. may
be accepted as security for the issue |
of circulation; and increasing TO $780, |
000 600 the amount Of circulation that /
may be taken out under the bill, the |
original limit having been 100000, 900. |
Might Avert n Panic.
Friends OF the Aldrich bill express |
the opinion-and this opinion is shared |
by Senator Aldrich, its author-that /
opposition to the measure on the part |
of bankers is because Of the belief en- |
tertained by them that it will be costly |
10 take out the proposed emergency /
circulation. The very fact that emer- |
gcncy circulation might be secured, |
Senator Aldrich said, would make its |
issuance unnecessary in any consider |
able quantities.
The Senate Democrats have not !
agreed upon a bill as a substitute for /
that introduced by Senator Aldrich. The /
indications are that they will be un- 4
able 10 reach an agreement on the sub /
jcct