The Chanute times. [volume] (Chanute, Kan.) 1897-1913, 1908-02-14
The MINORITY BILL
John Sharp Williams Introduced a
Currency Measure Employing
Democratic Ideas.
PROVIDES GUARANTY FUNDS
National Bank May Not Loan Money
for Stock Gambling Purposes
For Issue Of Treasury
t's' Notes.

Washington, Feb. 8.-What will be
known as the minority currency bill'
was introduced Friday by Representa-
tive John Sharp Williams of Missis-
sippi, the democratic leader of the
house, who drew the measure as re-
suit of conference of democrats be-
hind closed doors Friday.
Among the provisions of the bill
are the following:
1t repeats all laws permitting nation
al banks to keep three-fifths of their
reserves in national banks of reserve
cities and similar laws permitting such
deposit of one-half of the reserve
amounts.
1t provides that not less than one
half of the reserves now required to
be kept in lawful money in central re-
serve cities, shall be hereafter held in
gold or gold certificates.
No national bank shall loan in the
aggregate more than seven times the
amount of its paid-up capital plus its
unimpaired surplus.
Any national bank may keep so per
cent of it's reserve in United States
bonds or bonds of states or in the
bonds of certain municipalities, but
not more than one-fourth of the total
reserve may be kept in state or mu-
nicipal bonds; and the bonds shall be
acceptable only of such municipalities
as have maintained their bonds at or
.aICup civ nronndinu and
have been incorporate existence ten
years, and have never defaulted in
their funded debt, and whose net in
debtedness does not exceed IS per
cent of their taxable property. The
acceptability of such bonds as reserve
security shall be passed on by the at
torney general of the state in which
the municipality is located; and these
bonds shall be known as "inter-con-
yertible bonds"
The elastic currency feature of the
bill is contained in section which
provides that these inter-convertible
bonds may be deposited 'in the near
est sub-treasury, and the depositing
bank shall receive in lieu thereof
United States emergency treasury
notes" These notes shall be in the
nature of a loan, subject to taxation
OF one-eighth of 1 per cent for the
first four months of their issuance,
.one-half of / per cent for the second
four months, and l per cent thereaf-
ter When the bank feels that the
emergency has passed and the loan
notes are no longer needed, it may re-
deem them with actual money Such
redemption moneys shall constitute
a special fund for the purpose of re-
deeming United States emergency cur
rency notes whenever they are pre-
scented for payment, the notes to be
then Cancelled and destroyed. These
notes shall be legal tender.
For the creation of a fund of $751;
100000, for the payment of depositors
of failed banks operating under the
provisions of this law, there is author
lied the imposition of a tax of one
sixteenth of 1 per cent on the deposits
of banks so operating and whose con-
sent to be SO taxed as has been OBJ
tanned.
The final section of the bill pro-
vides that no bank officer shall make
a loan for the purpose of stock gam
bling, and fixes as the penalty for vio-
lation fine in the amount of the loan,
Or Imprisonment.