Lewiston evening teller. [volume] (Lewiston, Idaho) 1903-1911, 1908-01-10
ASSET CURRENCY
FOWLER'S PLAN
HOUSE COMMITTEE OF WHICH
HE rs THE HEAD SUBMITS A
BILL FOR CURRENCY REFORM
AT VARIANCE WITH OTHERS

WASHINGTON, Jan. 10.-The
house subcommittee on banking and
currency yesterday agreed on bill
to increase the elasticity of the cur
rency and will report it to the full
committee.
The bill will be introduced by
Mr. Fowler and referred to his COM
mittee, where 1t will form the work
of possibly the same scope and tenor.
The bill provides for the complete
retirement of all outstanding ma
tional bank bond-secured currency,
and authorizes in lieu thereof cur
rency based upon the general assets
of the banks, to be worked out in
this way:
The controller Of the currency
will designate throughout the coun-
try certain redemption cities, so
THAT there shall be redemption
city within at least "a hours of ev-
cry national bank. The national
banks will indicate to the controller
of the currency to what redemption
city they wish to be Joined. The con-
troller of the currency will select
time and place within a redemption
district for the organization of that
district, in the following manner:
Each national bank in that dis
trict, regardless of its capital stock,
will be entitled to one vote. Repre-
sentatives of the banks will meet at
time and place designated and
elect board of managers to consist
OF seven members. The seven will
elect a chairman, who will become
a deputy controller of the currency
and assume control of his redemp-
Etion 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
Treasury national bank notes and
lawful moneys in lieu Of other ma
tiona1 bank bond-secured outstand-
ing notes. Then, if the banks ap-
plication therefor is Endorsed by the
board of managers of the redemp-
tion district to- which 1t belongs. the
'Ibank will receive guaranteed credit
notes Ito the amount of its capital
stock. These, notes viii be subject
to tax sof 2sper cent per annum
Each bank will be required to de-
jposit as a guaranty fund with the
treasurer of the United States pei
cent of its average deposits for the
preceding IL months and 5 per cent
of the credit notes which it has out
The revenue thus obtained is to Gre
ate and support national guaranty
fund of $500, 100000 for the guar.
anty jof both the deposits and the
outstanding -banknotes of every ma
tional bank Eighty per cent of this
fund is to be invested in United
States bonds drawing 2 per cent in
lterest, while the remaining 20 per
cent is to be deposited in banks OF
the various redemption cities for the
purpose of redeemfng the guaran-
teed credit notes of the banks of the
various redemption districts.
When the national guaranty fund
reaches $25, 000,0 900. which would
be almost simultaneous with the
birth of the new law, the govern
ment is required to return to the
banks the United States bonds now
being held as security for federal de-
posits, the object being to enable the
banks to get control of the bonds,
SO that the government can invest
the 80 per cent of the guaranty fund
in 2 per cent bonds and regain con-
troll.
In buying those bonds the banks
holding them shall be paid their
original purchase price providing
their exact purchase price can be
| proven.
1t is Mr.. Fowler's idea as en-
bodied in the bill to have the new
credit notes printed on a green
background, in differentiation from
the yellow background of the gold
notes and white background Of the
silver certificates.