New-York tribune., 1908-01-31
REPORT ALDRICH BILL
ITS FORM as AMENDED.
Viii Be Called Up in Senate on
February 10.
IFrou1. The Tribune Bureau. ]

1'H-N@N'A
Washington Jan 3o-aIr AIdrich reported to the
Senate to-day the currency bill which bears MS
name. The report had been authorized at COM
mittee meeting this morning. at which every Re-
publican present had voted for the measure Sen
ator Hansbrough who advocates central bank or
issue is out of the city. He will offer his central
bank bill as a substitute and. that being rejected
will doubtless for the Aidrich bill MI Al
rich gave notice that he would call the dill up for
consideration February 10. and that in the mean
time he would offer a committee amendment TO the
railway bond clause
After saving that written report would accom-
pany the bill Mr. Aldrich moved an adjournment
and no other business transacted. The Senate
will meet tomorrow. however. to continue the con-
sideration of the Penal Code which it is hoped can
be disposed of this week.
The various amendments which have been pub
shed from time to time appear in the bill. al
though in general character II remains the same
when introduced. There has been an effort on
the part of the committee to emphasize the enler-
gency nature of the act. ard to this end various
amendments are inserted which are intended 10
speedy issuance of additional currency when
stringency occurs. The following amendment is
inserted in the first section in lieu of the provision
which gave the Controller of the Currency power
to fix the time and amount of issues. when applca-
tion is made. according TO his judgment and at his
convenience:
The Controller of the Currency shall transmit i'm
mediately the application with his reeomnendatlon,
his judgment business conditions in the locality
demand addttona o1rcnon' aRprUee e na 1e S the
amount, within limitations hereinafter imposed.
In order that the distribution of notes to issued
under the provisions Of this act shall be made as
tons of the country the Secretary of the Treasury
snah @ not approve ron S bih eIch ~
state would be entitled of the additional notes
which the unimpaired capital and surplus of the
10 iHe rcf ar Of m rp0
plus OF the national banking associations OF the
the applications from associations in any state
shall not be equal to the amount which the associa-
method of distribution the Secretary of the Treas
ury may. in his discretion. TO meet an emergency
plying association associations in states in the
same section of the country.
The clause OF the original bill fixing .5 per cent
of the market value of all municipal and railway
bonds the limit of the issue of notes against
them has been amended that railroad bonds
alone to be taken at 10 per cent of their mar
ket value. Notes may be issued against deposits
OF municipal and nty bonds up to 90 per cent
of their market value.
The limit of circulating notes that may be issued
under the act has been raised from $3.50 10000 TO
$500 0o0,oG
The section relating 10 the acceptance of interest
bearing obligations any legally authorized bonds
of states. cities, towns and counties deposits
for the security of additional bank currency issued
against them has been broadened considerably by
amendment The words cor other legally Const-
tuted municipality district which have been
added. are taken 10 that bonds issued by
school districts townships will be acceptable
provided they conform TO requirements specified
The population of these municipalities is fixed by
the reported bill at 90 instead of D,"o as orig
inally proposed
There is an amendment making il the duty of
the Secretary of the Treasury to obtain informa-
ton with reference to the value and character of
the municipal and railroad securities authorized to
be accepted under the provisions of the act and
he is required from time to time to furnish III
formation to national banking associations to
such bonds would be acceptable as security
To the end that information concerning railroad
bonds may be gathered with some degree of ac-
curacv the clause of the bill relating to the ac-
ceptauce of railroad bonds security for note
issues is amended TO include only the bonds
Of roads which comply with the existing law in
rerorting statements of their condition and earn
ings to the Interstate Commerce Commission.
The provision in the old bill requiring memo
randum on the back of each bond showing that
the legal title of the same has passed TO the
Treasurer of the United States in trust has been
stricken out and 1t has been made the duty OF
the Secretary of the Treasury 10 prescribe regu-
lations for conveying title.
The provision of the original bill relating to the
preparation of circulating notes in blank TO an
amount equal TO SO per cent of the capital stock
of a bank requesting issue has been changed
so that it is mandatory on the Controller to pro-
ceed as soon as practicable to prepare notes for
all national banks that they may be ready for
issue Immediately upon the receipt of applications
and after securities have been approved
In the bill reported there is no mention of
the reserves of banks outside of reserve ceu-
traI cities. The original bill required that they
should hereafter hold at all times at least two
thirds of their reserve in lawful money.
It IS specifically provided that all acts and
orders of the Controller of the Currency and the
Treasurer of the United States authorized by the
act shall have the approval of the Secretary Of
the Treasury