Spirit of the age. [volume] (Woodstock, Vt.) 1845-1913, 1908-01-11
Will Be REPORTED
Fowler Currency Bill Approved
by House Subcommittee.
It Is Designed To Meet the Demand
For Greater Elastioity-ProVides
For the Complete Aetlrement OF
All Present Outstanding National
Bank 5ond-Secured Currency ana
Authorizes a Currency Based on
Banks General Assets.

Washington-The subcommittee or
the house committee on banking and
currency, to which was intrusted the
framing of bill to increase the elas-
ticity OF the currency, has reached &
conclusion and will report favOrably to
the full committee a bill drawn in the
main by its chairman, Mr. Fowler,
The bill provides for the complete
retirement of all present outstanding
national bank bond-secured currency,
and authorizes in lieu thereof a cur
rency based on general assets of the
banks.
The controller of the treasury will
designate redemption cities so that
there shall be a redemption city with
In "a hours reach of every national
bank. The banks will indicate to the
controller to what redemption city they
wish to be Joined. The controller will
then select time and place within
each redemption district for the organ
lzing of that district in the following
manner:
Each national bank in that district,
regardless of its capital stock, will be
entitled to one vote. representatives
Of the banks will meet at time and
place designated and elect board of
managers to consists of seven mem
bers. These seven will elect a chair
man, who will become a deputy con-
troller of the currency and assume con-
troll 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
bond-secured outstanding notes. II the
banks application is endorsed by the
board of managers of the redemption
district to which it belongs, the bank
| will receive guaranteed credit notes
to the amount of its capital stock.
These notes will be subject to tax of
percent per annum.
Each bank will be required to depos-
1t as a guarantee fund with the treas
urer of the United States percent of
Its average deposits for the preceding
12 months and percent OF the credit
notes which it takes out.
The revenue thus obtained is to ere
ate and support a national guaranty
fund of $500, 100000 for the guaranty
of both the deposits and the outstand-
ing bank notes of every national bank.
Eighty percent of this fund is to be
invested in U. S. bonds drawing per-
cent interest, while the remaining 20
percent 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-
Gus redemption districts.
When the national guaranty fund
reaches $25 100000 which would be al
most simultaneous with the birth OF
the new law, the government is re-
| quired to return to the banks bond
which the government holds as secur-
| ity for federal deposits, the object be-
ing to enable the banks to get control
of the bonds so that the government
can invest the 80 percent of the guar
antee fund in percent bonds and re-
| gain control
In buying these bonds the banks
holding them shall be paid their orig
inal purchase price. provided the bonds
are bought before Jan. /, 1908, and
providing their exact purchase price
can be proved.
1t is Mr.. Fowler's idea, as embodied
in the bill, to have the new credit
notes printed on green background
in differentiation from the yellow
background of the gold notes and the
white background of the silver certi-
ficates.