Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-01-08
new FINANCIAL BILL
IS BEFORE CONGRESS.
Provides For Issue Of Amount Not Ex-
ceeding $250,000,ooo by National
Banks, Secured by Deposits.

| mands such additional circulation and
| the condition Of the association making
the application warrants the issue,
may approve such application and
shall determine the time Of issue and
| shall fix the amount, within the limit
atoms hereinafter imposed, of such adj
ditional circulating notes to be issued.
whenever after receiving notice OF
such approval any such association
shall deposit with the treasurer or any
assistant treasurer Of the United
States such Of the bonds described in
Section 2 Of this act as shall be ap-
proved in character Of the treasury. 1t
shall be entitled to receive upon the
order Of the comptroller Of the cur
rency, circulating notes In blank, reg
istered and countersigned as provided
by law, equal in amount to rs per
centum Of the market value as fixed
by the treasurer of the United States
Of the bonds so deposited, such addi-
tional circulating notes to be used,
held and treated in the same way as
circulating notes Of national banking
associations heretofore issued and Sc
cured by deposit Of United States
bonds and shall be subject to all the
provisions of law affecting such notes.
Provided that the amount Of such adj
dittonal circulating notes delivered at
any time to any association shall not
III any case exceed the limit fixed for
sucn issue by the Comptroller of the
currency and provided further that the
total amount Of circulating notes out
standing of any national banking asso-
citation secured by United States or
otherwise, shall not at any time ex-
coed the amount of its unmpaircd cap
ital and surplus, and provided further
that there shall not be outstanding at
any time circulating notes issued I'M
der the provisions of this act to an
amount Of more than $3.50, n0O,O 900 and
provided further. that all acts and or
ders of the comptroller Of the currency
and the treasurer Of the United States
authorized by this section shall have
tie approval of the secretary Of the
treasury.
Section THAT the treasurer of the
United States with the approval of the
secretary of the treasury. may accept
AS security for additional circulating
notes provided for in the preceding
section of bonds and other interest
bearing obligations of any state of the
United States OF any legally authorized
bonds issued for any municipal pur-
poses by any city or any county in the
United States which has been in eX-
istence as city or a county for a
period of Is years and which for q
period of ten years previous to such
deposit has not defaulted in the pay
ment of any part of either principal or
interest 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 census
and whose net indebtedness does not
exceed 10 per centum Of the valuation
of the taxable property therein, to he
ascertained by the last preceding
valuation Of property for the assess-
ment of taxes; or the first mortgage
bonds Of any railroad company. not in
Guiding street railway bonds which
has paid dividends of not less. than four
per centum per annum regularly and
continuously on its entire capital stock
for period Of not less than five years
previous to the deposit of the bonds.
The treasurer Of the United States with
treasury. may accept for the purposes
Of this act securities herein enumerat.
ed in such proportions as he may from
time to time determine and he may at
any time require the deposit of addi-
tional securities or require any asso-
citation to change the character Of the
security already on deposit.
Section 3-That all bonds deposited
to secure circulating notes issued in
accordance with the terms of this act
shall be transferred to the treasurer
Of the United States in trust for the
association depositing them. with a
memorandum to that effect attached to
or written on each bond and signed
by the cashier or some other officer of
the association making the deposit. A
receipt shall be given to the associa-
ton by the comptroller of the currency
or by a clerk authorized by him for
that purpose, stating that such bond
CONTINUED on Page Twelve.)