The Birmingham age-herald., 1908-01-20
CURRENCY BILL
 IS COMPLETED
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CONTINUED FROM PAGE 1.p
 -~.~~~~~<~~~ ~~~--~--~~-~<S-~>>-- us to be similarly unwise measures follow ing the recent crisis"
 The solution proposed by the com mission differs from the first Fowler bill, which was based upon principles approved by the convention of the American Bakers association at At lantic City, September 23, 1907. in that the holder of credit note, instead of being 8 general credit, shall be prior lien on the assets of the issuing bank. The security provided by pledg- ing the whole of the assets of bank instead of only a portion of them would afford more protection to the note holder. It is also said that the adoption of the plan would ensure "an ample supply of currency to the public relief from the disturbed commercial conditions such as those which we have recently passed, and finally the certain retirement of notes when they have fulfilled their purpose"
 Bankers Measure.
 The bill proposed by the commission is as follows:
 Be it enacted by the Senate and House of Representatives of the United States of America, in Congress assem- bled, that from and after the passage of tn is act any national banking asso- ciation which has been in business for one year and has a surplus fund equal to 20 percentum of its capital, may take out for issue and circulation national bank notes without deposit of United States bonds, as now provided by law. Said notes shall be known as National hank guaranteed credit notes. Said notes shall be issued in such form and
 denominations, and under such rules and regulations as the comptroller oI the currency shall fix.
 "Tbe amount of said notes so taken out by any national banking associa- . ton may equal to 40 percentum oi the amount of it's national bank notes at any time outstanding which are se- cured by the deposit of government honds. but shall not exceed in amount 25 percentum of it's capital, proVloeu' however, that if at any time In tne future, the present proportion or the total outstanding unmatured uhiteo States bonds to the total capitalization of all national banking associations 'n active operation shall diminish, theii the authorized issue of national oank guaranteed credit notes shall be in l creased to a correspondingly greater percentage of the bond notes.
 "se 2. That every national banking associa ton taking out national bank guaranteed credit notesin accoroahce with the foregoing section, shall pay to | tbe treasurer of the United States In the months of January and July tax of IA percentum upon the aVeras amount of such notes in circuialioh during the preceding hair year.
 Provision for More Notes.
 "sec 8. That any national banking association which has taken out nation al hank guaranteed credit notes in ac- cordance with the provisions or sectioI one of this act may take out iur.he, amount of national bank guarantees notes equal to 12h percen'um on a Ia nital but it shall pay to the treas urer of the United States in the months of January and July a tax Of 21s per = centum upon the average amount ol such notes in circulation during tHe proceeding half year. ..sec | That the total amount or
 hank notes issued by any national panh-
 ing association, including national oaiih
 guaranteed credit notes, taken out III ao
 cordance with the provisions or 'his ao.' shall not exceed the amount of its palo-uP capital.
 aSec E. That any national banking as soeiation situated and doing business III any central reserve city or reserve ci.y, shall at all times nave on hand in iaWlui money af the UEjteo States an amour. equal to at least a5 lcr centum or us ma t1onal bank gua,an.e .eeo credit notes m GIT culation; and every olner national bank ing associat.o.. .sla.l at all times have on hand in lawful moi,ey of the Unlteoi States an amount cqua to at least ID per cent of its guaranteed credit notes Tn CIT culation: provided, however, that any na- tional banking association situated and doing business in a reserve city may Keep one-half of it's lawful money reserve on denosit in a national bank in central re- serve city. or Ill reserve city. and that every national Lanking association sltu- ated and doing business outside or cen tral reserve city. or reserve city may keen three-fifths of it's lawful money re- serve on deposit in national bank in central reserve city or in n reserve city.
 ..sec. 6. That the taxes upon national hank guaranteed credit notes, provided for in Sections and of this act. shall he maid in lawful money to the treasurer of the United States. Said taxes, when received. shall constitute guaranty fund to redeem the notes of failed banks and to nav the cost of printing and current re- demption.
 Deposit to Be Made.
 "Sec T. That when any national bank ing association takes out any national