New-York tribune., 1908-01-08
MONEY BILL In SENATE.
INTRODUCED BY .4LDRICH.
Consideration of Emergency Cur
rency Measure To Be Pushed.
fFrorn The Tribune Bureaul


Washington. Jan. Senator Aldrich intro
duoed in the Senate to-day the financial meas
ure which is to constitute the basis for the most
important legislative enactment of this session.
The measure contains a number of important
features in addition those already outlined
in these dispatches.
Primarily it authorizes emergency
rency. to consist Of national bank notes, not to
exceed in the aggregate s250.o0e0oo. subject to
tax of per cent and to be secured by state,
county and municipal bonds and by first mort
gage railroad bonds which are to be accepted
collateral at 75 per cent of their market
value
The bill moreover alters the existing bank
law in the following important particulars: 1t
removes all limitation on the retirement of ma
tonal hank circulation; amends the existing law
as to provide that all national bank notes
shall bear on their face the declaration that
they will be redeemed in lawful money upon
presentation at the Treasury" instead of the
present legend. secured by United States bonds
deposited with the Treasury OF the United
States of America; provides that all national
bank notes when presented at the Treasury
shall be redeemed in lawful money" and in
creases the percentage OF reserves which banks
in other than reserve or central reserve cities
must retain in lawful money from per cent
10 10 per cent
The measure further provides that all revenue
received from taxes on the emergency currency
shall be paid into the redemption division Of the
Treasury as reserve fund for the redemption
Of United States and other notes; that banks
wishing to retire the emergency currency may
do so not only by depositing with the Treasurer
Of the United States lawful money, but national
bank notes; and that the Secretary Of the
Treasury on the request of any national bank.
shall cause TO be prepared and deposited with
the Treasury. or with the Sub Treasury nearest
10 the place of business Of such bank, ener-
eency currency. which shall be held there IN
readiness so that the bank may thus issue lls
emergency currency CT twenty-four, or at least
forty-eight hours notice
Finally the measure makes q change whereby
the deposits Of the United States, secured by
proper securities. shall not be regarded as de-
posits under that section Of the law which re-
uuires national banks to maintain reserves equal
10 given percentages Of their aggregate circu-
lation and deposits
EMERGENCY CURRENCY PROVISION
With regard to the emergency currency, the
Aldrioh bill places upon the Controller OF the
Currency subject 70 the approval OF the Secre-
tarv of the Treasury, the responsibility or de-
-,ermining the necessity and amount Of its issue.
United States and the Secretary Of the Treasury
the responsibility of passing upon the character
Of the securities offered collateral for such
currency.
Banks may avail themselves of the privilege
Of issuing such currency only when they have
? surplus Of at least 20 per cent ana q nor
nal circulation outstanding equal TO not less
than so per cent of their capital STOCK norman
circulation being used here 10 indicate circuIa-
ton secured by United States bonds. Inc
amount of emergency currency winch ma! De
issued by any bank is TO be determined by the
,,on+ro1ler of the Currency. with the approval
Of the Secretary, and subject TO the provision
that at no time shall the aggregate issue OF any
barL exceed the amount of its uniropaired cap
ital and surplus
The securities which may be accepted as
collateral for the emergency currency under
tf. provisions of Section of the Aldrlch Dill
are limited in addition TO United States bondS'
n the bonds of any state, of any county or CITY
,,,irh shall have been in existence fifteen years
and shall not for a period of ten years nave
defaulted any funded debt which has more
than 10000 population according TO the last
census and whose net Indebtedness does not
exceed 10 per cent of its taxable property
a,d to the first mortgage bonds of any rail-
Nay fstreet railways excepted which has
maid dividend of not less than per cent
or7-in1,orslv on its entire capital stock Tor not
less than five years.
SPEEDY COMMITTEE WORK PLANNED
The AIdrich bill was promptly referred 10 the
Committee on Finance. which VIII take UP I'S
consideration one week from to-day ana pursue
= continuously until il reports the measure II
is NOT expected that II viii be materially amend
ed in committee although there Is some seh'i-
-. - fa,-or Of q graduated tax the emer-
Eencv currency. 10 increase steadily aiter d
;a o@ rix r7,onrhs This is understood to be
+,,-ored hv Speaker Cannon. although Mr. can
non is NOT disnosed TO insist upon il 1t is also
ore;t,1a that there will be some opposition from
tho democrats because Of the inclusion of rail-
NAY bonds but that is expected to prove IN
..,,-,oountable Senator Aldrich expects that the
,,,eae,,ra will be reported 10 and passed by the
Senate without material change. although prof-
r.-a5 amendments VIII be carefully considered
The Democrats are at loss for satisfactory
--o,,nd on which to attack the measure lileF
7,-il1 undoubtedly develop some academic opJec-
tions hut there is indication at present OF
any determined fight on any OF ITS PROVISIONS
.rd they have nothing better TO offer as a SUD-
stitute- eo,,o-
As already stated IN these dispatches, speaker
,-.-,on has paved the way for the faVoraple
;z,-.-io, n the AIdrich bill in the House
= v-;Il be referred to the Committee on bdilh-
,,r and ClIrrenc--. Of which Mr. Fowler Is tie
,,.s-r,ar but despite the latters opposluon 10
.be measure MI Cannon anticipates faVoraple
re,o-1-anticipates il strongly, In lact' thot
he will again reorganize the coInmlttee' 7i'u'o
I. r-ove necessary. to obtain that enc
A. the request of Mr.. Aldrich the bill vi reao
=, length in the Senate. and the reading re-