The Birmingham age-herald., 1907-12-01
UNDERWOOD HAS
 FINANCIAL BILL Measure Embodies Government
 Guarantee of Banks MORE CONFIDENCE NEEDED Congressman Underwood Hopes That His Bill Will Meet With Favor In
 Congress as a Solution of
 Financial Problems.
MORE CONFIDENCE NEEDED

Washington. November 30.-(Special)- J. Representative Underwood of Alabama will introduce in the House Monday a bill providing for a small tax on national banks for the creation of trust fund to be maintained In the United States treasury for the protection of depositors and creditors of national banks.
 In reference to his bill, MT. Underwood stated that the stringent times in which the country now finds itself are pro- duced, not from lack of money in the country, but from want of confidence, and the fact that the money already in the country does not circulate. One dol- lar of currency circulating freely may often pay s10O of indebtedness in day, but when 1t goes Into hiding the real object of it's creation is lost entirely, because money Is not like other prop erty that has value of its own by rea- son of it's possession The value of money to the owner is due to the fact that he can exchange it in barter for other val uable commodities and the moment that money loses its power of exchange 1t is of no value except as a worthless piece
 
 Money Must Circulate.
 MT. Underwood thinks that one of the most necessary solutions of our present financial trouble is to provide, as far as possible, for the continuous and rapid circulation of money at all times. He Is of the opinion that the guaranteeing or deposits of national banks by the gov ,,t bau t<1 money in actual circulation than any other proposition that can be adopted; !; that. if the people of the country felt as- sured that in case national bank failed the government would repay to them at once their deposits, money would never be drawn out of the banks in case of Q panic and the money now hoarded would be brought out of hiding and deposited in the banks. where 1t could facilitate the payment of debts by every one.
 He is, therefore, very earnest in his belief that Congress should pass the bill introduced by him. and he is hope full that it may receive favorable con slderation at this session of Congress.
 Mr. Underwood's bill is as follows:
 A bill providing for q tax on national thanks to provide special fund for protection of depositors.
 Be 1t enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That a tax of one-fftieth of 1 per cent per annum shall be levied upon the average amount of deposits of every character held by national banks, the amount de- rived from said tax so levied and collect ed to constitute special fund to be held by the Treasurer of the United States for the better protection of de- positors and creditors or national banks, 1t shall be the duty of the Comptroller of the Currency on July 1, 1909. or as soon thereafter as practicable, and annually thereafter, to ascertain the average amount of deposits held by each and every national bank reporting to him. This shall be ascertained by adding to- gether the amounts shown by the five reports made to him in l9oS and each year thereafter, and dividing such sum by five; when the amounts are thus ar rived at the Comptroller shall notify each bank of it's liability under this act estimating the amount of tax due on such average amount of deposits at one fiftieth of 1 per cent per annum. and proceed to collect the same under regula- tIons to be formulated by said Comp troller An accurate account of all the sums of money collected under this Sct shall be kept by said Comptroller, and the funds shall be certified Into the treas-