Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-01-07
New Currency Bill Provides For
Al itional Bank Notes Not to
Exceed $3.50, 100000
NON. GOVERNMENT BONDS BASIS
Money to Be Issued Against State and
Municipal Bonds Whom COMPTROLLER
Approves = Issue Must Not Exceed
rs Per Cent Of Value Of Securities
Placed on Deposit.


bill which has been in prep
aration by leading republican members
of the senate committee on finances
today was printed. and given to the
public. The bill provides for an addi-
tional issue OF the bank circulation,
which shall at no time exceed $3.50
900, 900, upon bonds other than those
issued by the government including
state and municipal bonds in approved
cases. The comptroller of the currency
is given discretion in the issuance OF
the proposed currency and is author
ized to decide as to the time and the
amount to be awarded any banking
institution. 1t is provided that the
exceed 75 per cent OF the value Of the
bonds deposited.
Senator Aldrich introduced the bill
in the senate soon after that body con-
vened today. Following are the first
three sections Of the bill:
'srhat any national banking associa =
ton which has circulating notes OUT
standing, secured by deposit of United
States bonds to an amount Of not less
than so per cent Of its capital stock,
and which has a surplus Of not less
than 20 per cent. may make. applica-
ton to the comptroller of the currency
for authority to issue additional Cir
culating notes, to be secured by de-
posit OF bonds other than bonds OF the
United States The comptroller OF the
currency if, in his judgment, the con-
ciitions demand such additional circtt-
lation and the condition of the assoc
citation making application warrants,
shall determine the time of issue and
shall fix the amount, within limitations
hereinafter imposed of such additional
circulating notes to be issued. When-
ever after receiving notice OF sucn
approval any such association shall de-
posit with the treasurer or any assist
ant treasurer of the United States such
of the bonds described in section OF
this act as shall be approved IN char
acter and amount by the treasurer OF
the United States and the secretary
of the treasury, 1t shall be entitled to
receive upon the order Of the comp
troller of the currency circulating
notes, in blank. registered and counter
signed as provided by law equal in
amount to 75 percentum of the mar
ket value. as fixed by the treasurer OF
the United States, of bonds so de-
posted, such additional circulating
notes to be used and held and treated
in the same way as the circulating
notes of national banking associations
heretofore issued and secured by de-
posit of United States bands. and shall
be subject to all provisions of the law
affecting such notes, provided that the
amount Of such additional circulating
notes delivered at any time to any as
sociation shall not in any case exceed
the limit fixed for such issue by the
comptroller Of the currency; and pro-
vided further, that the total amount of
circulating notes outstanding of any
national banking association secured
by United States bonds or otherwise
shall not at any time exceed the
amount of its unimpaired capital and
surplus, anu pIONluCu loi lASAS SAAos
there shall not be outstanding at any
time circulating notes issued under
provision Of this act to an amount to
more than $250000,000; and provided
further that all acts and orders of the
comptroller Of the currency and treas
urer of the United States authorized
by this section shall have the approv-
al of the secretary of the treasury.
Section 2--That the treasurer of the
United States, with the approval of
the secretary Of the treasury may ac-
cept as security for the additional cir
culating notes provided for in the pre-
ceding section, bonds or other interest
bearing obligations of any state or
any authorized bonds, issued for mu-
nicipal purposes by any city or county
in the United States which has been
in existence as city or county for
period Of fifteen years, and which for
a period of ten years previous to such
deposit has not defaulted in payment
Of any part of either principal or in
terest of any funded debt authorized
to be contracted by it. and which has
at such date more than 10000 inhabi-
tants as established by the last CEN
Sus, whose Indebtedness does not ex-
ceed 10 per cent of valuation of tax
able property there, to be ascertained
by the last preceding valuation of prop
erty for assessment of taxes, or first
mortgage bonds Of any railroad COM
pany, not including street railway
bonds, which have paid a dividend Of
not tless than four per cent per an
nun regularly and continuously on its
entire capital stock for period Of not
less than five years previous to the
despoit of the bonds. The treasurer
of the United States, with the approv-
al of the secretary of the treasury,
may accept for the purposes of this act
the securities herein enumerated in
such proportions as he may from time
to time determine, and he al any time
require the deposit Of additional Sc