Arizona republican., 1907-12-09
TO PROTECT
 DEPOSITORS One of the Plans of findn-
 CiaI Reform Proposed Guaranty Which In the End Involves No Outlay.

Among the plans offered for the re- form of the currency system is bill proposed by c. F. Allis. vice president of The Second National Bank of Erie Pa, amending the National Banking Act, looking to the protection of de- positors. A similar bill was presented two years ago when there was less in terest in financial reform.
 The important features of the bill are:
 That no new corporation is contem- plated It is a great cooperative Pro- tective Association" of incalculable benefit to the people, and at the same time profitable to the bank.
 The government is simply custodian of the fund, and not a guarantor in any respect.
 Depositors are paid, possibly within two months, but certainly within two years.
 Every depositor is protected from loss without any action upon his part.
 As there are over sixty-five hundred national banks, the expense to each bank would be merely nominal.
 The six million dollar guaranty fund is not withdrawn at once from circu- lati0n. as some fear, but will accumu- late slowly, and be invested by the comptroller.
 The national banks will gain in de- posits, possibly one hundred million dollars now hoarded, or withdrawn from circulation.
 The following is a copy of the meas ure:
 Be it enacted by the Senate and House of Representative of America in Congress assembled: That the Comptrollet of the Currency be. and he is hereby authorized and directed, within three months after the passage of this act;and annually thereafter. to assess every national bank that shall be doing business at the time of said assessment, or which shall be charter ed after the passage of this act, as follows:
 Every national bank having a
 subscribed capital of twenty
 five thousand dollars ..... s100.00 Every national bank having
 subscribed capital exceeding
 twenty-five thousand, and in
 cluding but not exceeding one
 hundred thousand dollars .$l50.O0 Every national bank having a
 subscribed capital exceeding
 one hundred thousand dollars
 but not exceeding five hundred
 thousand dollars ......... $300.O0 Every national bank having
 subscribed capital exceeding
 five hundred thousand dol
 The above assessments may be paid in semi annual payments if so desir- eG by any bank.
 That the Comptroller of the Curren- cy on making said assessment shall thereupon notify each and every na- tional bank so assessed. stating the amount of it's assessment, and there upon each and every national bank so assessed and notified shall remit the amount of said assessment to the Treasurer of the United States. who shall place the said amount to the credit of fund called "The National Bank Deposit Insurance Fund"
 That a penalty of fifty per centum Of the amount of said assessment shall be added to the assessment of any bank not remitting as aforesaid within thirty days after receipt of said notice from the Comptroller. That if any na- IlOldi DdEh WHICH SEdll nave Dttll dS- sessed and notified as aforesaid shall fail to remit the amount of said as sessment as herein provided within ninety days after the receipt of notice from the Comptroller. the Treasurer of the United States is hereby authorized and directed to collect the amount of said assessment and penalty by due proceeding at law from such national bank so failing to remit
 That the comptroller of the currency shall continue to make this assessment annually upon each bank as herein provided until the amount in cash or in bonds as hereinafter provided, in the hands of the United States treas urer. and at the credit of this fund shall reach the sum of six million dol lars. when he shall discontinue said assessments. When the said fund shall have been reduced to five mil lion dollars or less the comptroller of the currency shall resume and continue said assessments as hereinbefore pro- vided.
 That the treasurer cf the United States shall hold this fund subject to the order Of the comptroller of the currency for the payment of national bank deposits. as hereinafter provided by this act