Kingsbury County independent. (DeSmet, Kingsbury County, S.D.) 1894-1929, 1908-03-13
PROVISIONS OF
The FOWLER BILL
Analysis Of 1t as Reported
Out by the Com
mittee.

The general interest in currency meas
ures makes the following analysis of the
Fowler bill, as reported. of present I'm.
portance:
Under the bill the United States Is divid,
ed into twenty commercial zones. with
a note redemption agency in each zone,
All the banks redeeming their notes AT
any one agency elect a board of mana
gers for their commercial zone, consist
ing Of nine members, who have entire
charge of the examination and supervision
of the banks In that commercial zone.
The chairman of each board of man.
ayers is a deputy comptroller or the cur
rency These boards OF managers meet
at least once every month. The deputy
comptrollers of the twenty commercial
zones meet at least every six months,
with the comptroller of the currency act
ing as chairman, for the purpose OF sol-
sulting and advising each other. 1t viii
be observed hat the structure OF this
organization is based upon that of our
state and federal government.
National banks are authorized: First.
TO take out bank notes for issue and cir
culation without depositing government
bonds; second, to guarantee depositors;
third, to act as executor. administrator,
guardian and trustee; fourth, to examine
and supervise their banks through their
own examiners.
In place of the present outstanding gov
rnmen bond secured notes the banks
will have the right to take out for issue
and circulation bank notes equal TO the
capital of the bank, the same being pro-
tected by gold reserve In amount as now
provided by law for deposits, and their
payment will be guaranteed by a deposit
in the United States treasury Of a fund
approximating 500, 900, 900.
II at any time the business interests Of
the country should reqGire IT In any local
ity subject to the approval of the board
Of managers of the respective districts any
bank may take out an additional amount
of notes equal to it's capital.
AT the time Of taking out bank notes
for issue and circulation a bank shall de-
posit In the treasury OF the United States
an amount of gold coin or its equivalent
equal to 3 per cent of it's average depos-
its for the preceding six months, and also
S per cent of the bank notes it takes out.
1t is assumed that the total deposits
will be at least $13, 900, 10000 and that the
total note issue will be at least $l,o0o,0 0 900,
making in ali s14. 600, 900, 900, 5 per cent OF
which is $780, 900 900.
AS soon as the amount in the guaranty
FUND arising from the deposit therein of
8 per cent of the note issue and ) per cent
of the deposits shall reach the sum of
S25,0 600, all bonds now held by the gov
eminent to secure it's deposits with ma
tional banks shall be returned to the re-
spective banks owning them, and the
banks shall thereupon begin to pay to the
government on its deposits interest there
on at the rate of 2 per cent per annum,
the same being payable semi-annually.
All government deposist shall be oquita-
bly, distributed throughout the United
States and no deposit with any national
bank shall exceed 50 per cent Of its cap
ital. A..
The government shall receive in pay
ment for it's dues national bank notes or
the checks or drafts of solvent national
banks, and shall pay all its own obliga-
ton by check or draft on national banks.
1t shall deposit from day to day all OF
its receipts In national banks precisely as
any business house does.
All expenses attaching to the transmits
sion OF any bank note by the holde there
Of TO a redemption agency is paid by the
government.
No bank is allowed to pay more than
2 per cent on any account subject to
check. The rates OF interest to be allowed
in the several redemption districts on time
certificates shall be determined by the
manage Of the respective districts
AS soon as the amount Of the accumu-
lation I'm the guaranty fund from income
reaches the sum of $25 W 1000 the balance
remaining on the first days of January
and July of each year. after paying all
expenses, shall be used to convert the
United States notes into gold certificates.
The result will be that the demand debt
of the government, amounting to 300.
O0, 900, will be paid out of the taxes on
circulation and interest on government de-
posits held by the banks,
1t Is the confident belief of the commit
tee that by the enactment OF this measure
all the Fundamental defects or weaknesses
in our financial and currency practice will
be eliminated and hat we shall have, all
things considered, the very best banking
system in the world instead of the very
worst. To delay this important work any
longer means still greater and continued
commercial disaster, and in case of a
great war a complete breakdown of our
national credit and all the ruinous con-
sequences that follow in its train.