The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1906-03-09
IN FAVOR. O
GRONNA'
BILL
Legislators Compliment Bank,
ing Bill Introduced By
Representative.
PERCENT TO BE LOWER
Amendment to Bill Substituting One.
Fourth Per Cent Reserve
Fund.
PERCENT TO BE LOWER
BY Wire From e. c. Snyder.

Washington, d. c., March 9-The
bill introduced by Representative
Gronna providing for the creation of n
fund with the comptroller of the cur
rency for the payments of deposits in
national hanks which may hereafter
become insolvent has attracted con-
siderable attention and has been yery
favorably commented upon by many
members who have examined It, II
appears, however, upon examination
that it will not be necessary to assess
SO large a percentage as was origin
ally contemplated in order to produce
reserve which will be sufficiently
adequate to protect depositors. Mr..
Gronna's bill as originally drawn call
ed for an assessment of one per
centum of the amount of banks can
ital stock and surplus. A reserve
sufficient to meet the requirements of
the proposed measure can be secured
by the assessment of one-quarter of
one per centum and the bill will be
amended in this particular.
Number Of Banks.
There areQt present in the United
States Sill national banks, having a
capital stock and surplus of $780,
100000. There are 1000 state banks
which make reports to the comptroller
OF the currency and these state banks
have capital and surplus aggregat-
ing $500,000,O00. The national banks
are compelled by law to render re-
ports to the comptroller of the cur
rency whenever he demands, his de-
mands for statement of their affairs
not to exceed five per annum. With
the state banks it is different. They.
report to the comptroller of the United
States at their discretion. 1t might
be termed as an evidence of good faith
or to show that they are in flourish
ing condition. The full text of Mr..
Gronna's bill and which was referred
to the committee on banking and cur
rency, follows:
The Gronna Bill.
"That each and every national bank
created, organized, and existing under
and by virtue of the banking laws of
the United States shall annually nav
to the comptroller of the currency one
per centum of the amount of its capi-
stock and surplus for the purpose of
creating fund with the comptroller
of the currency for the purposes and
as hereinafter specified and set forth
in this act: Provided, That whenever
in his judgment the said fund shall be
sufficient to answer the purposes here
IN provided for, he shall, upon reason
able notice to each of said banks. sus-
pend the further payment of said one
per centum.
Notice to Banks.
Sec. 2. That Immediately upon the
passage of this act the comptroller Of
the currency shall notify all national
banks existing and doing business un-
der the banking laws of the United
States of this act, with notice that they
shall within thirty days therefrom pay
to the comptroller of the currency the
amount of one per centum of their
capital stock and surplus, such pay
ment to be accompanied with a sworn
statement of the amount of the capi-
tai stock and surplus of such bank.
which sworn statement may be made
by any officer thereof; and any nation
al bank which may hereafter increase
its capital stock or surplus shall i'm
mediately notify the comptroller of the
currency by sworn statement of such
increase and the amount thereof any
pay to the comptroller of the currency
the amount of one per centum of such
increase. That if the officers of any
national bank wullfully neglest or re-
fuse to comply with any or all Of tho.
provisions of section one of this act
or OF this section, such failure or re-
fusal shall be deemed sufficient cause
for the forfeiture OF the charter OF
such bank. and it shall be the duty OF
the comptroller of the currency .
cause proceedings to be instituted for
such forfeiture.
In Case Of Inssavency.
"Sec. 3. That when any national
bank. as mentioned in this act, shall
hereafter become insolvent, and after
full liquidation and settlement its de-
positors are not paid In full, the
amount found to be due to each ana
every depositor after such liquidation
and settlement. with interest thereon
at the rate of three per centum from
the date such national bank was de-
clared insolvept and closed. shall 10
paid by the comptroller Of the cur
rency out OF the fund created under
and by virtue of this oct. ia
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Nay AIsiy Ter FsavIlese. 5
Sec. Z. That any banking institn-
ton incorporated. existing and dolnei
business under and hys virtue Of ~
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