The Birmingham age-herald., 1908-01-09
PRESENTS
 FINANCIAL BILL
Asset Currency Plan Is Basis
 For Measure
GUARANTEE $ 5O0,o0O,OOO
Chairman Fowler Also Recommends That Congress Pass Lava For Uni. form System and Absolute
 Protection For Depositors.

Washington January S.-The sub
 committee of the House committee on 1 banking and currency, to which was entrusted the framing of a bill to in crease the elasticity of currency. reache ed a conclusion today and will ! report favorably to the full committee bill drawn in the main by Chairman Fowler of the committee.
 The bill will be introduced by MT. Fowler, and referred to his committee, where it will form the wording basis for the framing of a bill If possible of the same tenor and course.
 The bill provides for the complete retirement of all present outstanding national bank secured currency and au-
 thorizes in lieu currency based upon general assets of the banks to be worked out in this way:
 Currency Assets.
 The comptroller of the currency will designate throughout the country cer- tain central cities so that tn ere shall
 be redemption city within at least 24 hours reach of each national bank.
 The national banks will indicate to the comptroller of the currency to what redemption city they wish to be joined. The comptroller will then select a time
 and place within each redemption dis
 trict for the organizing of that dis trict in the following manner: Each national bank in that district, regardless of it's capital stock, will be entitled to one vote. Representatives of the banks will meet at a time and place designated and elect a board of managers to consist of seven members.
 These men will elect a chairman who will become deputy comptroller of
 the currency and assume control of his
 redemption district except that he shall not have charge of the enforcement of the criminal statutes.
 Each national bank is authorized to present to the Secretary of the Treas ury national bank notes and lawful ; moneys in lieu of other national bank i bondsecured outstanding notes. Then if the banks application therefor is indorsed by the board of managers of ! the redemption district to which it
 belongs the bank will receive guaran- !. tScu Ci cult ioteS to tie dlnouHl ol It's capital stock. These notes will be sub ject to a tax of per cent per annum.
 Guarantee Fund.
 Each bank will be required to deposit
 as guarantee fund with the treasurer of the United States per cent of its average deposits for the preceding 12
 months and per cent of the credit
 notes which 1t takes out. The revenue thus obtained Is to create and sup port national guaranty fund of S500,- 100000, for the guaranty of both the deposits and the outstanding bank notes of every national bank. Eighty per cent of this fund is to be invested in United States bonds drawing 3 per cent interest, while the remaining 20 per cent is to be deposited in banks of the various redemption cities for the purpose of redeeming the guaranteed credit notes of the banks in the vari- ous redemption districts.
 When the national guaranty fund reaches s25 100000, which would be al-
 most simultaneous with the birth of the
 new law, the government is required
 to return to the banks the United
 States bonds which the government
 now holds as security for federal de-
 
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