Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-02-08
ReOeals Law Permitting Natl
BANKS to Keep Three-Fifths
Reserves in Natl Banks.
LIMITATION OF LIABILITIES.
..on Made for Fund of St5,000,-
ooo For Payment of Dcpositors of
Failed Banks.

,,.,.btnrton. Feb. 7.--What will be
,s the minority currency bill
ss introduced today by Representa-
" iobn sharp Williams Of Missls-
., the Democratic leader of the
80 WHO drew the measure as n re-
~, If harmonious conference of
nomoofatic members of the house COM
,,ittee OIL banking.
ma hin viii come before the house
A., tbc shape of q minority report from
,bo banking and currency committee
A, rs present form.
Among the provisions of the bill are
The following:
+, repeals all laws permitting nation
nj hunks to keep threefifths of their
rsssryes In national banks of reserve
oities and similar laws permitting such
deposit of one-half of the reserve
amounts.
II provides that not less than one
half of the reserves now required to
he kept in lawful money in central re-
serve cities shall be hereafter held In
gold on gold certificates.
II does away with the Payment of
national bank examiners by the fee
system, and substitutes salaries of not
less than $4,000, nor in excess of $4,000
yearly. with actual expenses.
1t provides that the total liabilities
of any national bank, inclusive of the
liabilities of its members, shall not
exceed one-tenth of the banks paid-in
and unimpaired capital stock and one
tenth Of It's uuimpaired surplus FUN s;
and that in no event shall the liza bill
ties exceed 30 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 80 per
cent Of its reserve in United states
bonds or bonds of states. or in the
bonds of certain municipalities, but not
more than one-fourth of the total re-
serve may be kept in state or munl-
cipal bonds; and the bonds shall be
acceptable only of such municipalities
rs have maintained their bonds at or
above par for six years preceding, and
have been in corporate existence 10
years, and have never defaulted In their
ounded debt, and whose net indebted-
ness does not exceed is per cent of
their taxable property.
The comptroller of the currency, i'm
rediately after the passage OF the bill.
'A"'' tN' ii'Sit Il tppy VI Ilie new w
to each bank in the country. ana in
lulre If 1t Will accept the provisions,
Consent shall be binding and the liza
lIlltie' attaching to consent may Nc
enforced by the comptroller. Agree
nent to accept the provisions shall en-
itle state banks and trust companies
o the benefits OF the new law.
The elastic currency feature of the
bill is contained in a section which
irovldes that these interconvertlbla
,onds may be deposited I'm the near
81 sub-treaSury" and the depositing
ank shall receive in lieu thereof United
states emergency treasury notes, sub
yet TO taxation, redeemable at any
tine, and legal tender.
For the creation of fund of Sl5.-
saCOO for the payment of depositors
q failed banks operating under the
Noyislons of this law, there is author
led imposition of a tax of one-six-
zenith OF l per cent on the deposits
q banks so operating and whose con-
snt to be SO taxed has been obtained.
The final section of the bill provides
nat no bank officer shall make n Ioan
ilr the purpose of stock rramblfue