The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1908-02-15
Currency MEASURE
ocpaTs WILL SUBMIT MINOR
Try REPORT TO HOUSE OF
REPRESENTATIVES.
Inc for Creation of Fund Of
mo 600 for Payment Of Deposit
Failed Banks by Tax Of One
e;x.senth of One Per Cent on De-
posts.

Known as the minority currency OIL
INV Introduced in the house yester-
We" nv Representative John Sharp
1 uaI of Mississippi, the Democrat
Ioadpr who drew the measure as
~ rosulr of a harmonious conference
'l nemocratic members Of the house
o,mmittee on banking.
'0 Tho hill will come before the house
.bo shape of minority report from
ranking and currency committee
~ &c nresent form. Among the pro-
";,;ous Of the bill are the following:
# repeals all laws permitting ma
..ano, hanks to keep three-ffths Of
.hoir reserves in national banks of
sacorve cities and similar laws permit
limo such deposit of one-half of the
reserve amounts.
II nroyides that not less than one
b.If of the reserves now required to be
ront in lawful money in central re-
norra cities shall be hereafter held
in gold or gold certificates.
II does away with the payment of
rational bank examiners by the fee
.rctem. and substitutes salaries not
lass than $4,000 nor in excess of $5,-
OOO yearly, with actual expenses.
Liabilities of Banks.
II provides that the total liabilities
of anv national bank, exclusive of the
liabilities of it's members, shall not
exceed one-tenth of the banks paid
I'D and unimpaired capital stock and
onetenth of its surplus funds, and that
in no event shall the liabilities exceed
20 per cent of the capital stock.
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 its reserve in United tSates
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
dCctpidUlG Uuly VI OuCA muu1SAPoAASAOo
as have maintained their bonds at or
above par for six years preceding, and
have been in corporate 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 comptroller of the currency, i'm
mediately after the passage of the bill,
shall furnish copy of the new law to
each bank in the country and inquire
if il will accept the provisions.
Effect of Agreement.
Consent shall be binding, and the
liabilities attaching to consent may be
enforced by the comptroller. Agree
ment to accept the provisions shall
entitle state banks and trust COM
panies to the benefits of the new law.
The elastic currency feature of the
bill is contained in a section which
provides that these interconvertible
bonds may be deposited Gin the near
est sub-treasury'' and the depositing
bank shall receive in lieu thereof
United States emergency treasury
notes, subject to taxation, redeemable
al any time and in legal tender.
For the creation of fund Of $751;
VOO,OOO for the payment of depositors
OF tailed banks operating under the
provisions of this law, there is author
hed the imposition of a tax of one-six-
teenth of 1 per cent on the deposits of
Oanks SO operating and whose consent
u De SO taxed has been obtained.
Inc final section of the bill provides
mat no bank officer shall make a loan
lor the purpose of stock gambling.