The Washington herald., 1908-05-28
Treasury Holds the Reinn.

The Secretary of the Treasury is to
determine whether business conditions
demand any emergency issue applied for
The banks and the assets Of all banks
belonging 90 an association are 70 be
held jointly and severally liable 10 the
United States for the redemption Of the
additional circulation. each bank being
liable. however, only for the amount OF
its proportionate share OF the aggregate
capita. Of the association. II a bank
fails 10 give additional securities when
directed 10 do so by the association, the
association may sell its securities on
hand at public sale, and must deposit the
proceeds in the United States Treasury
for the redemption OF the additional cir
culation. II a bank fails 20 make good
its redemption fund the United States
Treasurer may supply the deficiency from
the redemption fund OF the association
to which the bank belongs.
Individual national banks may issue
only on deposits of bonds. including those
Of States. counties, and municipalities
The counties and municipalities must
have been in existence at least ten years
and have not defaulted on principal or
interest payments on debts, and their net
funded indebtedness in each case must
not exceed 10 per cent OF the valuation Of
their taxable property.
Provides Redemption Fund.
A national bank issuing emergency
notes must deposit in the Treasury a sum
equal to per cent Of its additional cir
culation as redemption fund. this being
in addition to the > per cent redemption
fund required for the issue OF present ma
tional bank notes.
No association in any State is 10 be
permitted to issue circulation in excess
Of the proportionate amount 10 which
that State would be entitled. The proper
ton will be on the basis OF the unimpair-
ed capital in that State 10 the total
amount Of unimpaired capital and surplus
Of the national banks Of the United
States.
National banks which take out circula-
ton on deposits Of government bonds in
Guiding Panama bonds, bearing interest
at . per cent. shall pay a tax % one-half
per cent Der annum on its circulation
notes outstanding. Circulation based on
government bonds bearing a higher rate
Of interest shall be taxed ! per cent per
annum. Circulation secured otherwise
than by government be shall pay a
tax at the rate Of per mt per annum
for the first month, an,3 afterward an
additional tax Of I per cent per annum
for each month. until a tax OF 10 per
cent per nnnum is reached. and after that
a tax Of 10 per cent per Gnnum.
Interest on Government Deposits.
Circulating notes may be withdrawn
from circulation by tho deposit OF an
equal amount OF lawful money. Not more
than 100000 Of lawful money shall be
deposited for this purpose in any one
month. Government deposits in banks
are 10 pay interest az the rate Of not less
than ] per cent per annum, the exact in
terest to be fixed by the Secretary Of the
Treasury but it must always be uniform
throughout the United States
The conference bill provides also for the
creation of the National Monetary Com
mission. TO consist of nine members Of
the Senate to be appointed by the presid-
Ing officer OF that body, and nine mem
bers OF the House, 10 be appointed by
the Speaker. The commission Is TO rec
ommend changes in the monetary and
banking statutes. with the idea OF bring
ing about the enactment Of a permanent
currency law.