The Washington herald., 1908-01-31
OFFER AMENDED BILL
Aldrieh Measure, in Changed
Form, Reaches Senate.
HALF BILLION FOR EMERGENCY
Amount of Additional Circulation
Doubled Percentage Value Of
Notes 90 Be Issued on Approved
aonds Increased. Railroad Bonds
Excepfcd-What Bill Proposes.

The bin introduced by Senator Aldrich.
chairman Of the Senate Finance Commit
tee. designed 10 furnish a sufficient sup
ply of emergency notes to meet the de-
mand caused by financial stringencies.
was yesterday reported to the Senate.
after having been amended by the Repub-
llcan members Of the committee
Senator Aldrich gave notice that he
would eall il up on Monday, February
10, for consideration. The Democratic
Senator's have signihed their intention
not to filibuster against the measure, but
20 permit it TO pass after a reasonable
time for debate. They have suggested
ten days as ample time. and the pros
poets are good that a flood OF financial
oratoTy viii flow for that space.
The minority Senators will oppose the
Aldrich bill with "A substitute of their
own-iust which one # has not yet been
determined: but it's principal feature viii
be in line with William Jennings Bryan's
suggestion that the emergency notes to
be issued are to be Treasury notes in
stead OF national bank notes, as the AID
rich bill provides.
What Bill Now Proposes.
The Aldrlch bill. as amended. pro-
vides that any national banking associa-
ton which has circulating notes out
standing. secured by the deposit Of
United States bonds to an amount of
not less than 90 per cent of its capital
stock. and has a surplus OF not less than
20 per cent, may apply for authority TO
issue notes secured by the deposit Of
bonds other than government bonds.
IN place of the provision that the
amount and time OF issue OF these notes
were to be determined by the Comptroller
OF the Currency. the committee placed
that responsibility in the hands OF the
Secretary of the Treasury, and added the
following proviso:
In order that the distribution of notes
TO be issued under the provisions OF this
act shall be made as equitable as practi-
cable between the various sections of
the country, the Secretary Of the Treas
ury shall not approve applications from
associations in any state in excess Of the
amount 20 which such State would be
entitled OF the additional notes herein
which the unimpaired capital and surplus
of the national banking associations in
such State bears TO the total amount of
unimpaired capital and surplus of the
national banking associations of the
United States; Provided however that
IN case the applications from associations
IN any State shall not be equal 20 the
amount which the associations of said
Size would be entitled to under this
method Of distribution, the Secretary Of
the Treasury may In his discretion. 10
meet an emergency, assign the amount
not thus applied for to any applying as
ISOLATION or associations in States in the
same section Of the country"
Increases Note Percentage.
The amount of notes to be issued
against the bonds so deposited was in
creased by the committee from Is per
cent of their market value TO 80 per cent
in the case Of all except railroad bonds,
which remain at 70 per cent. as originally
fixed. The amount of emergency notes.
together with the regular circulating
notes, are not to exceed the amount Of
the unimpaired capital and surplus of
any bank. and the aggregate amount Of
the emergency notes TO De issued is not
10 exceed S50o,6000p0, the committee
doubling the amount fixed by the bill
originally
Section > prescribes the bonds 10 be
deposited by the banks as security for
the emergency notes. In addition to
United States bonds, they include bonds
Of any State, city. town, county, or other
legally constituted municipality or dis
trict in the United States which has been
in existence for ten years. and for the
ten years prior has rot defaulted in the
payment of either principal or interest on
any funded debt, and whose funded in
debtedness is not In excess Of 10 per cent
OF the valuation Of its taxable property
and the first mortgage bonds OF railroads
which have paid not less than per cent
on capital stock continuously for FIVE
years previously.
Tha committee added a DrovisO 10 the
railroad bonds that the road, in com
pliance with existing law, report regularly
TO the Interstate Commerce Commission
a statement Of its commission and earn
ings" There was also added by the COM
mittee a requirement that the Secretary
of the Treasury shall obtain information
as 10 Inc value ana character or the
municipal and railroad bonds to be ac-
cepted as security, and furnish the banks
with a list Of those that would be ac-
cepted
Varying Taxes Imposed.
On emergency notes issued upon de-
poslts OF per cent United States bonds.
the banks are required to pay tax Of
i Of 1 per cent each six months; on
United States bonds paving higher in
terest the tax is Z of I per cent, and on
State railroad. and other bonds the rates
are taxed \ Of per cent a month.
Section provides for the withdrawal
Of the emergency notes by depOsiting law
ful money against them
Section 6 directs the printing and storing
in the various subtreasuries Of emergency
notes ready for instant use.
The committee struck out of the bin the
requirement that national banks outside
Of reserve or central reserve cities should
hold at least twO-thiTds of their reserves
in lawful money, leaving it at Is per cent
of their deposit liabilities. as at present
TiIlman Hits at Railroad Mergers.
In the Senate yesterday Senator Till
man fntrOduced a hill reof1iriner intarsta %.