The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1908-01-18
CURRENCY
Us-coMMITTEE ON BANKING AND
CURRENCY HAS CON-
PLETED A BILL.
Authorizes Credit Notes to the Amount
OF Bank capital-lnstitutions to Be
Organized Into Districts With Dep
uty comptrolIer-Guaranty Fund Of
$500, o00, 900 e Be Provided.

Washington, Jan. 9.-The subcom.
mittee of the house committee on
banking and currency, to which was
intrusted the framing OF bill to In
crease the elasticity of the currency,
reached a conclusion yesterday and
will report favorably to the full com
mittee bill drawn in the main by
Chairman Fowler, of the committee.
The bill will be introduced by Mr..
Fowler and referred to his committee,
where it will form the working basis
for the framing of bill of possibly
the same scope and tenor.
The bill provides for the complete
retirement of all present outstanding
national bank bond-secured currency,
and authorities in lieu thereof a cur
rency based upon general assets OF
the banks to be worked out in this
way:
The comptroller of the currency will
designate throughout the country Ger.
tain redemption cities so that there
shall be redemption city within at
least twenty-four hours reach of each
national bank. The national banks
will indicate to the comptroller of the
currency to what redemption city they
wish to be joined. The comptroller
will then select a time and place with
in each redemption district for the or
ganizing of that district in the fol.
lowing manner:
Will Elect Deputy Comptroller.
+ Each national bank in that district,
regardless of it's capital stock, will
be entitled to one vote. Represents
tives of the banks will meet at a
time and place designated, and elect a
board of managers to consist OF seven
members. The seven will elect a
chairman who will become deputy
comptroller of the currency and as
sumo control of his redemption dis
trict, except that he shall not have
charge of the enforcement of the Grim
inal statutes.
Each national bank is authorized to
present to the secretary of the treas.
ury national bank notes and lawful
moneys in lieu of other national bank
bond-secured outstanding notes. Then
if the banks application therefor is in.
dorsed by the board of managers OF
the redemption district to which it
belongs, the bank will receive guaran
teed credit notes to the amount of its
capital stock. These notes will be
subject to a tax of per cent per
annum. Each bank will be required
| to deposit as guaranty fund with the
treasurer of the United States pei
cent of it's average deposits, for the
preceding twelve months, and 5 pei
cent of the credit notes which it takes
out. The revenue thus obtained is to
create and support national guar
anty fund of $500, 100000 for the guar
anty of both the deposits and the out
standing bank notes of every national
bank. Eighty per cent of this fund
lis to be invested in United States
bonds drawing per cent interest
while the remaining 20 per cent is tC
| be deposited in banks of the various
redemption cities for the purpose Of
lredeeming the guaranteed credit notes
| of the banks of the various redemption
districts.
| Government to Return Bonds.
When the national guaranty funG
reaches $25,000,000, which would be
almost simultaneous with the birth
of the new law, the government is re
uuired to return to the banks the
United States bonds which the gov
eminent now holds as security fol
federal deposits, the object being tt
enable the banks to get control Of
the bonds so that the government car
Invest the 80 per cent of the guaranty
fund In per cent bonds and regain
lcontrol. In buying those bonds tht
banks holding them shall be paid theil
original purchase price. providing
their exact purchase price can b.
proved.
| It Is Mr.. Fowler's idea, as embodied
I'm the bill, to have the new credit
tnotes printed on green background
lin differentiation from the yellow back
lground Of the gold notes and white
background Of the silver certificates.
| Mr.. Fowler, chairman Of the com
lmittee on banking and currency yes
Iterday made the following Statement
regarding the financial situation:
1--WE are today with regard to oul