Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-01-09
FOWLER DRAWS BILL
New financial Measure Proposed by
Chairman Of House Committee.
CURRENCY RAsED ON ASSETS
Banks to Pay Two Per Cent Annual
Tax on All Notes Issued
GUARANTY FUND IS PROVIDED
II Consists Of Five Per Cent Of De-
poGts and Five Per Cent Of Notes.
DETAILS OF PROPOSED SCHEME
REDEEM ption cities with Deputy Comp
troIIer 60 BE Within T-venty-
Four Hours OF Each
National Bank.
/ CURRENCY RAsED ON ASSETS
Banks TO Pay Two Per Cent Annual
Tax on All Notes Issued
GUARANTY FUND IS PROVIDED
DETAILS OF PROPOSED SCHEME

@bAA@h2A
WASHINGTON, Jan s-T1.s s-oconnit-
tee OF the house committee On banking and
currency. 70 which was entrusted the
framing OF 4 bill % increase the elasticity
of ths currency, reached a conclusion today
and viii report ravorabiy = bill drawn IN
the main by Chairman Fowler Of the com
nittee.
The biu viu be introduced by Mr. Fow-
ler ard referred TO his committee where It
will form the working basis tor the framing
OF a bm Of possibly the same scope ana
tenor.
The bill provides for the complete retire
ment Of all present outstanding national
bank bond-secured currency and author
lies In lieu thereof currency based upon
general assets OF the banks. TO be worked
out in this way.
The comptroller OF the currency VIII des-
ignate throughout the country certain re-
demption cities 50 that there shall be a
redemption city within at least tventy-four
hours reach Of each national bank. The
national banks will indicate 20 the comp
ROLLER OF the currency to what redemp-
don city they wish 70 be- Joined. The comp
troller will then select a time and place
within each redemption district for the or
ganlzation OF that district in the following
manner:
Method Of Administering Law.
Zach national bank n THAI district re-
gardless OF its capital stock. will be enti-
tied TO one vote. Representatives Of the
banks viii meet at a time and place desig-
mated and elect a board OF managers. 70
consist OF seven members. The seven will
elect 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 en-
forcement OF the criminal statutes.
Zach national bank is authorized 10 pre-
sent to the secretary Of the treasury
tionaI bank notes and lawful monies in
len OF other national bank bond-secured
outstanding notes. Then II the banks ap-
plication therefor is endorsed by the
board Of manager Of the redemption dis
trict to which il belongs. the bank will
receNe guaranteed credit notes 20 the
RaseEu of it4 eBpinal stock These notes
viu be sib3ect TO a tax OF per cent per
anuum. Each bank viii be required 20 de-
post as q guaranty fund with the trea-
surer of the United States PEI cent of its
average deposits for the preceding twelve
months and 8 per cent OF the credit notes
which IL takes out The revenue thus OBJ
tained is created to support a rational
guaranty fund OF N00.O000O for the
guaranty Of both the deposits and the out
standing bank notes OF every national
bank. Eighty per cent OF this fund is 20
be invested IN United States bonds draw
ing per cent interest. while the remain
ing u per cent Is 20 be deposited in banks
OF the various redemption cities for the
purpose Of redeeming the guaranteed
credit notes Of the banks In the various
redemption districts.
When the national guaranty fund
reaches SIS. oo0O0o. which would be almost
simultaneous with the birth OF the new
law the government IS required 10 return
% the banks the United States bonds
which the government now holds as se-
curity for federal deposits. the object being
70 enable the banks % get control Of the
bonds 50 that the governments can invest
the - per cent Of The guaranty fund in .
per cent bonds and regain control
In buying these bonds the banks holding
them shall be paid their original purchase
price. provided the bonds we're bought be-
fore January + ls0s ana providing their
exact purchase price can be proved.
Il Is Mr.. FoWler's idea. as embodied In
the bin. % have the new credit notes
printed on a green background. In differ
entiation from the yellow background of
the gold notes and white background OF
lie silver certificates.
Statement by Fowler.
Nr Fowler. chairman OF the committee
on banking and currency. TO-DAY made the
following statement regarding the finan-
cial situation;
We are today, with regard o. sur flnan-
gial and currency practices, where We were
in Isss with regard TO standard values. and
% decide nov 20 make all kinds M bonds
the basis OF currency would be lust as
serious and fatal a mistake 20 have
adopted silver then as our standard OF
value
The time is ripe, the circumstances are
suspicious and a careful investigation OF
all the facts and conditions iusrf'es the
conclusion that congress can and should so
lsaislAte as 60 brinE about these insults.
4 A uniform banking system
z Uniform bank reserves consisting Of
gold issue OF Is eguiyaleu
f. A simple and sgienrific monetary svs-
tenn consisting lf only three forms OF cur
rency-Eoid for our bank reserves. bank
larger bills and silver for THE smaller
bills and subaidiArF coins
"a "A currency automatically Ill -SI in =
tsef % the demands " trade never too
great nEVer too small but always Just
adequate 20 or requirements
3 Equal ard absolute protest .0u rn am
depositors il national banks by placing Boo
the United states treasury Elarau-v
fund which oY Ianuar1-, lse. 1uzhr t1 ap-
uruZiu ate SrH04.-so-
The eaIA biishma nj OF certain -Ill-s and
r-- .arl1nE wherrhV th- financial opera
lions % the treasury shall BE- So conducted
that The government VIII cease rn be- dis