New-York tribune., 1908-05-28
CURRENCY BILL PASSED
HOUSE VOTE, 166 TO 40.
AId1ch to Call Up Conference Re-
port in Senate To-day.
rFron The Tribune Bureau.

| hours debate. equally divided between the two
| sides. Representative VreeIand. chairman OF
| the conference, explained the provisions Of tns
| bill. showing that it contained both the bond
| principle of the AIdrich bill and the CONNER
| ciaI paper feature OF the vreeland bill. leav-
| ing optional with the banks the form Of Sc
| curity they would employ for emergency cur
rency. Representative Pujo explained the
| measure from the Democratic standpoint and
| Mr.. Glass. of Virginia. made facetious speech
| which ELECTED applause despite the fact that
/ it included no attempt at logical reasoning.
| Representative Bourke Cochran made an ad-
! dress in which he sought 10 establish the con-
| tention that there were no such things fnan-
I ciaI strinCences emergencies. save the erner-
| gency in which the Republican party found
| itself. and maintained that any system where
| by the banks were provided with funds with
/ which TO assist embarrassed borrowers vas
| fundamentally unsound- Mr. Cochran delivered
| his peculiar opinions in manner which led
| Mr. Burton in replying declare that the
| utterances Of the New Yorker made the de-
| livery Of "bonnbastes furioso'' seem like the
tfttering Of canary. Representative Williams
made another speech Of the same tenor Rep-
resentatfve Weeks. of Massachusetts. made an
argument for the bill. dealing with its merits
seriatim
Mr. Burton. of Ohio. closed the debate with an
ANALYSIS of the measure. in which he declared
that never would he have voted for the Aldrich
bill but that the combination of the Aldrlen
and VreeIand measures conserved every inter
est afforded to the bankers of the country
ample means OF relieving a stringency and tld-
ing over embarrassed although sound hnanclaI
institutions while il carefully guarded the
credit of the Country's money Mr. Burton
remarks which we're frequently interrupted
with applause included the assertion that once
more the Democrats had demonstrated their
utter tnconPetency to govern the country; that
they had advocated the Williams bill and con-
denned the AIdrich bill. despite the fact that
they we're based precisely the same principle
and that finally they repudiated the Williams
bill and contented themselves with jeering at
the majority because it was about TO accom-
plish the desired and important end-the enact
ment Of legislation which would prevent re-
currence of such a financial stringency as
caused so much suffering last autumn
Only fourteen Republican votes backed the
solid Democratic vote against the conference
measure, most of those coming from the Bank
| ing and Currency Committee but Mr.. Hayes. Of
California. member Of the committee. who has
violently opposed the Aldrich bill. voted in the
affirmative The Republicans voting in the neg
ative were: Messrs- Cooper, Morse and Nelson
| CWisD. Brumm (Penn). Fowler IN. j.. Hill and
Henry Conn. Lindberg (Minn), Murdock, CAL
| derhead and Campbell tKanD. Prince ClL1
Waldo On. " and Darrah (Mch.J- ----
PROVISIONS OF COMPROMISE BILL
The terms Of the compromise reached by the
cOnferrees were as outlined in these dispatches
10 this mornings Tribune. except that the House
conferrees yielded the subject of time Em-
itatfon and the bill is not TO be enforced until
June 80. 1914 The details of the bill
follows:
The reserve required TO be retained in central
reserve and reserve cities is 10 per cent straight
A a. e
> per cent. required by the present law.
is stipulated and all IT shall be held in Wash
ington The emergency currency issuable shall
not exceed in the aggregate S5O0OoO.0e0- Such
currency shall be subject a retirement tax OF
3 per cent for the first two months and addi-
tional l per cent month thereafter until 10
per cent is reached. State county and munc-
ipaI bonds shall be acceptable security for
emergency currency at 80 per cent of their mar
ket value. Other bonds and commercial paper
shall be similarly acceptable at - per cent OF
their market value. No bank shall be allowed
to take out emergency circulation in amount
excessive of 80 per cent of its capital and sur
plus when the security offered is commercial
paper. No emergency currency may be taken
out under any circumstances unless the obigant
bank has already taken out according to the
present law an amount Of currency equal to 40
per cent of it's ca pitaI stock and surplus.
The nrovfsfon from the AIdrich bill is fncorpo-
rated in the conference bill that banks which
hold state county municipal bonds may.
with the approval OF the Secretary Of the Treas
,1r1 take out additional currency directly upon
them up TO 90 per cent of their market value
that is they may do so their individual initf-
alive and responsibility. The use Of commercial
raner as a basis for taking out emergency cur
rencv NAV be only by banks which affiliate
themselves in groups Of not less than ten. with
an aggregate capital and surplus OF not less
than S5.CSOO0O- Such groups shall be known as
national currency associations" instead OF ma
tfonaI clearing house associations the clearing
house associations of the country having object
cd ~ the use Of the latter name. The clause
creating currency commission. 20 be COM
posed of nine members Of the Senate and nine
members of the House. is carried in the bill
THINK BONDS WILL BE FAVORED
OF course the measure provides that banks
NAV hvpotheCate commercial paper a basis
for emergency currency. but il is not believed.
in view of the somewhat elaborate machinery
with which it has been deemed best to surround
this method that any sound bank viii resort to it
and form a clearing house association when a
method so much simpfr. that OF merely de-
posting state. Coupty municipal bonds in
the Treasury. is available Another deterrent
to the bank which might desire to secure enler-
gency currency by the deposit of commercial
paper is that in addition forming an asso-
citation OF five banks with an aggregate capital
pledging the entire assets of all such banks as
security for the desired currency the total
amount Of currency which may issue on COM
nercfal paper must not exceed 80 per cent or
the unimpaired capital and surplus of the issu-
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