Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-02-08
MINORITY HAS A Plan
democrats in Congress Devise
Scheme in Secret For Cur
rency Legislation
LOW TAX FOR CIRCULATION
Emergency Cash to Be Cheap in Time
Of Need - State Bonds for Reserves
Williams and Leaders Get Togeth-
er-some of the Provisions of the
PROPOSES Bill.

Washington, Feb S.--What will be
known as 1.-THE minority currency blll
was introduced today by Representa-
tive John Sharp Williams of Missls-
sjppi. the democratic leader of the
house, who drew the measure as re-
suit of a conference of democrats be-
hind CLOSED doors yesterday.
;icipated N the conference were Rep
resentatives Lewis of Georgia, PuJO OF
Louisiana. Glass of Virginia GILLESPIE
of Texas. Ollie James Of Kentucky
Crawford of North Carolina, and Nc
Henry of Pennsylvania-all members
of the committee on banking and cur
rency. Entire harmony is said to have
marked the meeting.
1t is understood that the bill as
drawn by Mr.. Williams may be sub
iected to slight amendment by Ns
supporters, but it will come before the
house in the shape of minority re-
port from the banking and currency
committee IN it's present form.
Among the provisions of the bill are
the following:
1t repeats all laws permitting ma
tional banks to keep three-hfths OF
their reserves in national banks OF re-
serve cities, and similar laws permit
ting such deposit of one-half OF the
reserve amounts.
IT provides that not less than one
half of the reserves now required 10 DC
kept in lawful money in central re-
serve cities shall be hereafter held IN
gold or gold certificates.
It does away with the payment OF
national bank examiners by the zee
system and substitutes salaries not
less than $4,000 nor in excess of $5,0OO
yearly, with actual expenses.
1t provides that the total llabllltles
of any national bank, inclusive OF the
liabilities of it's members. shall not eX-
coed one tenth of the banks PAID III
and unimpaired capital stock and one
enth of it's impaired surplus funus'
and that, in no event, shall the llabll-
ties exceed 80 per cent of the capital
stock. The discount of bills of eX-
change drawn in good faith against &C
tually existing values. ana the dls-
count of commercial or business paper
actually owned by the person negotlat-
ing it. shall not be considered as IL
abilities. Violation of this section is
made misdemeanor punishable by
fine or imprisonment.
No national bank shall loan IN the
aggregate, more than seven times the
amount Of it's paid up capital plus its
unimpairad surplus. Violation is pun
ishable as provided in the section pre-
ceding.
State Bonds for Reserve.
ANY national bank may keep so per
cent of it's reserve in United States
bonds OF bonds of states or in the
bonds OFT certain municipalities, but
not more than one-fourth of the total
reserve may be kept in state or munlc-
ipal bonds, and the bonds shall be ac-
ceptable only Of such municipalities
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 lS per
cent of their taxable property
The acceptability Of such bonds as
,l,a1 hn
by the attorney general of the state
in which the municipality is located,
and these bonds shall be known as
"inter- controvertible bonds"
The controller of the currency, i'm
mediately after passage of the bill,
shall furnish a copy of the new law to
each bank in the country and inquire
if it will accept the provisions
Consent shall be binding, and the
liabilities attaching to the consent may
be enforced by the controller. Agree
ment to accept the provisions shall
entitle state banks and trust compan-
les to the benefits of the new law.
Low Tax on Emergency Notes."
The elastic currency feature of the
bill is contained in a section which
provides that these fnterconvertible
bonds may be deposited Gin the nearest
and "the depositing bank
shall receive in lieu thereof United
States emergency treasury notes"
These notes shall be in the nature of
a loan, subject to a taxation of Is of
1 per cent for the first four months
of their issuance, u of 1 per cent for
the second four months, and l per cent
thareafter
When the bank feels that the emer-
gency has passed, and the loan notes
are no onger needed, it may redeem
them with actual money. Such re-
demption moneys shall constitute a
special fund for the purpose of redeem
ing United States emergency currency
notes when ever they are presented for
the notes to be then can