The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-03-28
ALDR|CH BILL
FINDS FAVOR
j IN The SENATE
Morgan'S Measure Passes by
a Vote of az to16, Almost
on Party Lines.
UTAH, SENATORS FOR
AND IDAHO AGAINST
SEVERAL OF THE LA TOILETTE
AMENDMENTS ADOPTED, BUT
HE VOTED NAY.

Washington, March 27--The Al
drich currency bill was passed by the
senate today by Q vote of AZ TO 16, in
the main by a party vote. Previous
To the taking of the vote on the AL
drich bill a vote was taken on the
Bailey substitute authorizing the gov
eminent, instead of the national
banks, TO issue the emergency circu-
lasion for which the bill provides The
..S<6te on the substitute stood AZ to 10,
tand this vote was entirely partisan,
even Senator La Toilette casting his
vote with the Republicans. The bill
has been before the senate since Jan.
.. The vote was not reported until
after p. m, and the galleries were
practically empty.
An interesting feature of the pas
sage of the bill was a reiteration by
Mr.. Aldrich of his promise to bring in
bill for an investigation of the en-
tire banking system Of the country,
with view TO instituting reforms.
Provisions of the Measure.
As passed. the bill provides for not
more than $500, 000, 600 of emergency
currency to be issued 70 national
banks upon the deposit by them of
state. county and municipal bonds to
be approved by the secretary of the
treasury. The currency is to be is
sued with a view to securing an
equitable distribution of the currency
cover the United States. and in ac-
n eOrdance with the unimpaired capital
~and surplus of banks i'm each state.
Banks are to pay for this emergency
circulation one-half of l per cent
month during the first four months it
is circulated, and afterwards three
quarters of l per cent a month.
The bill provides that national
banks shall pay not less than l per
cent ON government funds deposited
Eith them.
Change in Banking Laws.
As amended today, the bill carries
an important change in banking laws
relating to bank reserves. This
amendment provides that of the 10
per cent reserve required to be kept
by banks not in reserve cities four
hfths of this is to be kept in the
vaults of the banks, and of that
amount One-third can be in the form
of securities of the kind required.
BY another amendment agreed to
today the period during which half of
! per cent interest is TO be charged
was reduced from six to four months
after which three-quarteTs of / per
cent Is to be charged until redeemed.
Amendment Accepted.
kAt the instance of Mr.. LaFollette,
81 amendment was adopted prohibit
ing any national bank from investing
its funds in stocks or other securities
of a corporation the officers or direct
ars of which are officers or directors
o the bank, and providing a penalty
of imprisonment of from one TO five
years. In accepting this amendment
-s.,E,
time to consider the amendment fully
but was in sympathy with its general
purpose He said it could be perfect
ed in conference.
The proposition to insert a provi-
sion for a government guarantee of
deposits in national banks was the
subject of an extended debate, and
was defeated by vote of IL TO 46,
most of the Democratic vote being
9sainst the proposition.
Some Turned Down.
Another amendment offered by Mr..
IaFollette prohibited loans by ma
tional banks 10 its officers or TO any
corporation the majority stock of
which is owned by the officers of the
bank. 1t was rejected as was also
an amendment offered by Mr. Nelson /
(MinnO providing that no officer or
employe of a national bank shall be |
member of a stock exchange or en- /
gagged in buying or selling stocks or |
bonds on a commission basis.
An amendment by Mr.. LaFollette to |
punish by from one to five years i'm /
prisonment any classification in bank /
securities was adopted. but was pro-
tested against by Senator Knox as al |
ready provided for by existing law.
Bailey Substitute Beaten.
Senator Teller offered. on request of |
Senator Bailey CTexas), who was all 1
hi. the substitute currency bill of |
the senator from Texas. which. he /
stated, was i'm the main similar to the |
Aldrich bill with the difference that
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