The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1908-05-12

clearing house association scheme
The bin was adopted In exactly the
form as presented by the conference
committee with the exceptions OF two
minor amendments.
Among those who ytel AGAINST the
bin were Representatives Cooper. OF
Wisconsin; Brnmm Of Pennsylvania
McMoran. Of Michigan Murdock oi
Kansas. Darraeh. OF Michigan Camp
bell of Kansas; Cushman, Of Wash
inrton: Representatives Prince Of wv
nois. and Hayes of California. quit the
conference shortly before the vote was
ras,
The chief points nl the bill are set
forth In the foll1wing synopsis and
etaiement made by Mr. Vreeland
Following the instructions Of the
conference the commit used the
previously introduced Yreeland b'll as
a working basis for the new act. Sec
tion OF that ON provides that banks
not less than ten in number with an
aggregate captal and surplus OF at
least s6.000000. may form voluntary
associations to be known as 'elearins
house association chat If the needs
of the country for currency are so
pressing that IN the opinion of the
secretary of the treasury an additional
issue OF bank note circulation is nee
essary the banke h7longing tu clear.
ing-house association may deposit SCI
cnrties Including commercial pape..
In Quantlty and amnent acceptable to
tho association The association may
therpupon appeal TO the secretary Of
the treasury and he may issue an
amount gf additional currency not 20
exceed ~ per cent OF the securities 50
deposited The changes made In that
section in conslruciing the conference
bin arc thai the clearinghouse ASSOC
Citations must he formed in ooptlgnou
territory; that NIT more than one
shall exist la any one city and that no
bank can belong 10 two assOciations
"rhe conference committee further
provided that the capital and surplus
OF each bank belonging TO an ASS ella.
tion shall be Jointly and sevcrally liza.
bic to the government for any de-
holercy in the amount necessary to
pay the circulating notes after the sale
OF such securities so deposited In case
The notes are not redeemed
{ "A further change Is that national
bank need have but 40 percent of its
capital Ia bon6securod circulation in
cedent TO taking oul additional cIrcula-
/ tinn through an association. An addi-
Itioual provision was added that banks
Unjust keep a reserve in gold or lawful
money against such additional circu-
latlng notes as is now provided by law
against deposits.
Tho eommitte reduced from $780,.
000,OOO to S500000,0 600 the limit of adj
ditional circulation which may be talk
on aut Tor emergency uses
Mr. Nrceland commented disapproy
linely upon the action OF Chairman
/ Fowler OF tho banking aud cnrency
committee. who Is the leader OF the
republican insurgency on ihe currency
question Ia sendins a copy or his owl
most recent urgency bin and letter
in relation thereto. 10 the new yree
land bin TO G0O0 bankers throughout
4 the country Mr. Vreeland said.
The parts OF Alr Fowlers letters
Ia which he praised the currency bin
which he has introduced are right and
proper somo glarlng and important
miastatements Of fact, however Were
made ln relation 20 the effects Of the
new Nieelond currency bin"
Konnedys Laxative Cough Syrui