Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1908-03-09
70WLYR'S BANKING BILL.

While Congress is talking to the
lleries in preparation for the polit-
al campaign next fall, there APP
.ars to be general consent that def
tie action must be taken to straight
out the banking laws. which were
mnd so pitiably weak during the re-
,nt banking panic.
The two principal measures before
congress are the Aldrich bin of the
;enate, which makes no drastic
3hange from the present national
lanking system but provides for an
mergency currency based on the
sual banking assets, and the Fowler
NJ, which is the House measure for
living the financial problems of the
our. This is a very radical depart
IRE from the present arrangement
Ind therefore is credited with having
mall prospect of being adopted,
hough the final bill may be COM
ination of both.
Chairman Fowler's plan as ex-
pressed in his bill reported favorably
" the House Committee on Finance,
= Ito establish simple and scien-
ific monetary system founded upon
old"
The bill provides first that within
cnty-four hours after the passage
the act the Comptroller of Cur
icy shall designate central cities In
country as will practically bring
ry banking association of the
ted States within twenty-fours of
ank-note redemption agency. The
riot with the 24-hour, radius Is
wn as a redemption district.
u banking associations OF a re-
,tion district shall organize into
g5orintion TO be known as The
,uUmberJ Bank Note Redemp-
district" This association has
d of managers Of seven men,
the chairman elected by the
is to act as and have the au-
Of a Deputy Comptroller OF
y, and receive a salary of
year
the organization of the "rc-
districts" is complete any
bank may" retire its cur
cured by United States bonds,
in its place national bank
led credit notes" equal to its
capital. The bank must pro-
the redemption of these
gold coin and deposit in
or its equivalent with the
Of the United States an
of money equal to Ave per
its average deposits during
eding year, and further
of five per cent. of the
of the national bank guar
credit notes" issued.
on as all the moneys deposit
he national banks with the
err of the United States shall
to $25,000,000. all United
'onds now held by the Treas
secure Government deposits
je returned to the respective
and after this return any bank
ng Government money on de-
shall pay interest thereon at
ate of two per cent. per annum,
,er cent. being levied on the av-
balance during six months,
one per cent. on the amount of
ional bank guaranteed credit
5" issued.
he United States Treasurer is to
1.-THE money realized from the per-
itage on deposits, currency, etc, as
fund to guarantee 1.-The payment of
Individual deposits, all bank
totes, all bank deposits, and all Gov
Srnment deposits 80" and to pay
all expenses incurred in the way OF
properly conducting and maintain
ing the several 'bank-note redemption
agencies
Eighty per cent of the guaranty
fund is to be invested in two per
gent United States bonds. At least
one-fifth Of the guarantee fund must
betisept in cash and deposited at the
various redemption agencies to facil-
itate redemption.
.. Every national banking associa-
aion in central or reserve city must
have on hand, at all times, cash to
the amount of twenty-five per cent.
of It's national bank guaranteed
credit notes" in circulation. and all
Banks must have cash on hand to at
least fifteen per cent. OF the amount
of its credit notes in circulation.
Whenever any bank failure occurs
after January /, 1909, one-tenth al