The sun., 1908-03-26
ALDRICH BILL UP FOR VOTE
NAM CHANGES OFFERED AND
REJECTED.

tnual consideration until vote Is reached
hitch appeared at the start. Senator
Lodge had an amendment TO include In
the bond feature Porto Rican bonds, that
is bonds Of the insular government Of Porto
Rico. This was adopted on a closely di.
vided yea and nay vote. but an amend
mentto include bonds Of the Philippine Gov
eminent, including the Friar bonds and
bonds Of the city Of Manila, met hard
shedding.
Mr.. Clay Of Georgia asked II the bonds
were guaranteed by the United States
Government. Mr. Lodge answered in the
negative. They were in the Same position
as bonds Of State or city and were OF the
character Of Territorial bonds.
Mr.. Teller Of Colorado told Mr.. Lodge
emphaticaly that the Philippine bonds
we're not in the same position as city or
State bonds aud neither were they Of the
character OF Territorial bonds
NO ono knows" said Mr. Teller. what
the future OF the iAlands Ia TO be nor what
the relation OF our country ia TO be to them.
The people who bought those Philippine
bonds took their chances and il would be
entirely against the principleN Of this bill
TO put the Government In the position Of
indorsing them
M Lodge replied that the Government
Of the United States had indorsed them
70 some extent in that they we're authorized
Ivy an act Of Congress and approved by the
United States Government.
Mr. Teller-Thb amendment did not
come before tho committee. The com
Inittee trimmed the bill 80 as TO meet OBJ
jections that would confront II after II
leaves u.s. was in favor Of retaining rail-
road bonds. but they were eliminated
10 anticipate opposition after the bill leaves
the Senate.
Mr.. Aldrich-I think the Senator from
Colorado ia mistaken. | think that this
amendment was laid before the committee
and passed over.
Mr.. Teller-T rcollect now 10 the con-
trary. recoleot that the amendment
came before the committee and was re-
jected.
Mr.. Lodge persisted that the bonds we're
Of equal standing with other municipal
aud State bonds allowed in the bill for
emergency CuCuldlOn
Mr. Teller was determined in his opposi-
tion and said he hoped we would be rid Of
the Philippine Islands by some means or
other one day IF the expected war with
Japan comes we will be rid Of them easily
he said, because Japan will walk in there
and take them
Mr.. Teller tempered this observation with
a smile and then he added: Il have no idea
there will be any war with Japan"
Mr.. Lodge allowed the amendment to be
recommttod to the Finance Committee.
Mr.. Nelson Of Minnesota stirred up a con-
Hjct Unexpectedly by offering an amend
ment requiring the Government 10 exact
interest on its deposits in national banks.
Mr. RupkIns OF illinois made a lohg argu-
ment against the proposal, during which
he was repeatedly interrupted by Mr.. Nell
son
Mr. Hepburn Of Idaho offered an amend
Inent requiring all nauonai hanks to keep
on hand in their own vaults Is per cent.
OF their deposits.
MIR. Hopkins ssid that the Government
hank deposit was the peoples money, and
the purpose Of the deposit was TO make il
accessible 70 the people by distribution in
bank depositores throughout the country.
II interest we're charged thereon II would
raise the rate Of interest to the people who
borrowed from the banks.
Mr. Aldrch interpOsed 10 assure Mr..
Nelson that the Finance Committee would
give his amendment careful attention IL he
would have IL referred,
Personally. Mr. Aldrich said he had no
objection To charging the hanks interest on
Government deposits II it could be done
oompatibly with the public interest,
Has the Senator from Rhode Island any
mental reservation when he says that?'
asked MIR Nelson.
aNone whatever answered Mr. AldnCh.
Mr. Hepburn criticised q concession
allowing the hanks 70 nave a pro-
portion OF iheir reserves in bonds. He
wanted real n serve in real money. not a
fictitious thing, . phantom that proved
without substance IN time Of need. Bonds
might ~ good worth 2 dollar for a dollar
of money but when the money was scarce
the hOnis could not be converted into il
ri sill.
Mr. Aldrch said there were two reasons
why the Hepburn cmendment should not lie
pssasd First IL required reserves to be kept
IN good and lawful money. This meant gold
coin and silver legal tender notes II the
figures of the senator from Idaho we're
should he SIN hundred millions the banks
would have to find three hundred millions
Of money now in channels of trade 10 meet
tho requirements, since the amount Of the
lawful money they now had In their posses.
sion was about $500. .0JO. ON, Another rea-
con why the amendment should he defeated
was in the reduction Of the reserve from
IS per cent, u IL per cent, in the reserve
henks OF the large cities Further it would
a ka nttf al fuT "a
up in the banks a vast amount OF the money
now in circulation.
On vote Mr.. Hepburn alone voted for !
his amendment lie demanded q roll call !
The vote was IS TO p Mr.. Gore Of Oklahoma
voting with Mr. Hepburn in the affirmative
Mr. Mel IRurn of Mississippi submitted
an amendment making the Governments
claim against national banks on account
NJ the issuance Of emergency notes sub
ordinate to claims Of depositors. He
argued that the Government was presumed
10 have sufficient security in the bonds
tho hank deposited against the issue, In
case of liquidation il would he unfair to
permit the Government TO take bank assets
to make up a deficiency before all unpro-
tected depositors were first satisfied
There was nearly two hours debate on
the amendment which was defeated on a
yea and nay vote, 10 to Q.
Mr. Owens Of Oklahoma announced that
he had intended to offer number Of amend
ments but n the chairman Of the Finance
Committee had declared yesterday In favor
uf commission 10 investigate the causes
~ the recent panic and 10 report on reforms
in banking he would not present them II
the Senator from Rhode Island would give
assurances that he would bring tho matter
before the Senate in due time
Mr. Aldrich gave the assurance.
1 - a