Daily press. [volume] (Newport News, Va.) 1896-current, 1908-01-09
TO CREATE IMMENSE
GUARANTY BANK FUND
Banking and CurPsney's suh.Gom-
mIllee Of House Of Represent.
a|IYes Prepares Bill.
RADICAL CHANGE N THE SYSTEM.
Would Divide Country Into Redcmp.
ton Districts, the Head Of Which
Would be Deputy Comptroller and
Who Would be in Full Cont 'cl =
Min Fcaturcs of Bill.
(By Associated prcss.)

WASHINGTON. ID. c., Jan -
The. sub committee OF the House on
banking anu currency, to which was
entrusted the framing of n bill to in
crease the elasticity of the currency,
reached conclusion today. and will
report favorably to the full commit
tee n bill drawn by Chairman Fow-
Ter or the committee. The bill will
be introduced by Mr.. Fowler and re-
ferrcd TO his committee, where IL will
form the working basis for the franz
ing OF bill. The bill provides for
the complete retirement OF all pros
ent outstanding national bank bond
secured currency and authorities in
lieu thereof currency based on gem
eral assets of the banks In this way:
The comptroller OF the currency
viii designate throughout the coun-
try redemption cities. so there shall
he n redemption city within at least
"a hours reach OF every national
bank.
The national banks viii Indicate
10 = comptroller OF the currency to
what redemption city they wish to
be joined. Tho comptroller viii then
set such time and place within each
redemption district for The organizing
of that district in the following man
ner: Each national bank In that dis
trict. regardless OF its capital stock,
Will be entitled To one vote. Repre-
sentativcs OF the banks will meet nj
n time and place designated and elect
board OF managers. to consist of
sever members. These seven will
elect chairman who will become
I n deputy comptroller OF the currency
and assume control OF his rcdemp-
ton district, except that he shall
not have charge OF the enforcement
OF the criminal statutes.
To Create Immense Guaranty Fund.
Each national hank Is authorized
to present TO the secretary of the
treasury national bank notes and law
ful monies In lieu OF other national
| hank bond secured outstanding notes.
Then IL the banks application there
Tor Is endorsed by the board OF man.
ayers of the redemption district to
which 1t belongs. the bank will re.
ceive guaranteed credit certificates TO
| the amount of its capital stock. These
notes will he subject to tax of two
per cent. per annum. Each bank will
be required TO deposit as guaranty
| FUND with the treasurer OF the United
States five per cent. of its average
| deposits for the preceding II months
ana live per cent. OF the credit. notes
which it takes out. The revenue thus
J Obtained is to create and support n
national guaranty fund of 5000, 900 900
for the guaranty of both the depos-
it's and outstanding bank notes of
every national bank. Eighty per cent.
OIL THIS fund Is 10 be Invested in Uni
TED States bonds drawing two pei
cent. interest, while the remaining
70 per cent. is TO be deposited in
banks of the various redemption cit
les Tor the purpose OF redeemng the
guaranteed credit notes of the banks
In redemption districts. When the
national qua anty fund reaches 5000
oVo,oO0, which would be almost sim
nit'ncous with the birth of the new
Jaw, the government is rcqui,cd ia
return to the banks the Unitel States
bonds which the government now
nous as security for deposits; the
object being TO enable the banks TO
get control of the bonds so that the
government can invest the 80 per
cent. OF the guaranty fund In two per
cent bonds and regain control.
In huying these bonds the banks
holding them shall be paid their or
iginal purchase price. provided the
bonds were bought before January /,
i'cS. and providing their exact pur-
chosc price can be proved.
Representative Fowlers Statement.
NJ. Fowler today made the fol-
lowing statemont regarding the A.
nancial situation: We are today.
with regard to our financial and cur
rency practices. exactly we're we were
in 1868 with regard to our stand
ard OF values: and to decide now Ia
make all kinds of bonds the basis OF
currency would be just as serious
and fatal mistake as to have adopt