Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-01-09
MR.. FoWlER'S CURRENCY BILL
WOULD RETIRE BoND-sECURED
BANK NOTES.
Proposes a Circulation Based Upon
General Assets-Provisions of
the Measure Described.

The currency bill of Mr.. Fowler chair
man of the House banking and currency
committee, provides for the complete re-
tirement o: all present outstanding ma
tional bank bond-secured currency. and
authorizesIn lieu thereof currency based
upon general assets of the banks. to be
worked out in this way:
The controller of the currency will desig-
nate throughout the country certain re-
demption cities, so that there shall be a
redemption city within at least twenty
four hours reach of every national bank.
The national banks will indicate to the
controller of the currency to what re-
demption city they wish to be Joined.
The controller will then select a time and
place within each redemption district for
the organizing of that district in the fol-
lowing manner:
Boards of Managers.
Each national bank in that district. re-
gardless of it's capital stock. will be en-
titled to one vote. Representatives of
the banks will meet at a time and place
designated and elect board of managers.
to consist of seven members. These seven
will elect "a chairman. who will become
deputy controller of the currency and
-
except that he shall not have charge of
the enforcement of the criminal statutes.
Each national bank is authorized to
present to the Secretary of the Treasury
national bank notes and lawful moneys in
lieu of other national bank bond-secured
outstanding notes. Then if the bank $
application therefor Is Endorsed by the
board of managers of the redemption
district to which it belongs the bank
will receive guaranteed credit notes to
Al,Sa mt f,f tic FOL
notes will be subject to a tax of Q per
cent per annum. Each bank will be re-
CURED to deposit as a guaranty fund with
the treasurer of the United States per
cent of its average deposits for the pre-
ceding twelve months, and > per cent OF
the credit notes which it takes out.
National Guaranty Fund.
The revenue thus obtained is to create
and support national guaranty fund OF
500. 900 600 for the guaranty of both the
deposits and the outstanding bank notes
of every national bank. Eighty per cent
of this fund is to be invested in United
States bonds drawing ? per cent interest.
while the remaining 20 per cent Is to be
deposited in banks of the various redemp-
ton cities for the purpose of redeemng
the guaranteed credit notes of the banks
in the various redemption districts.
When the national guaranty fund
reaches So, 900. 000-which would be al
most simultaneous with the birth of the
new law-the government is required to
return to the banks the United States
bonds which the government now holds
as security for federal deposits, the OBJ
ject being to enable the banks to get con-
troll of the bonds SO that the government
can invest the 50 per cent of the guaranty
fund in per cent bonds and regain con-
troll.
In buying these bonds the banks hold
ing them shall be paid their original pur-
chase price, provided the bonds were
bought before January !, 1908. and pro-
viding their exact purchase price can be
proved.
1t is Mr. Fowlers idea, as embodied in
the BILL to have the new credit notes
printed or a green background, in differ
entiation from the yellow background Of
the gold notes and the white background
of the silver certificates