Bluefield evening leader. [volume] (Bluefield, W. Va.) 1906-1911, 1908-01-09

currency measure has been in
troduced in the senate. known as the
Aldrich bill, providing for an addi-
tional national bank currency aggre-
eating not to exceed $25O,OOO.OOO.
to be secured by approved state.
county and municipal bonds and by
first mortgage railroad bonds to con.
form to certain requirements.
Interest at the rate of one-half of
one per cent. month, to be assessed
against such circulation during the
time ii is outstanding.
The idea is to make a more elastic
currency and make the interest suf-
ficiently high to retire money issued
upon collateral other than United
States government bonds when mon
ey is easy. Such a measure would
unquestionably lend a hexibility TO
the money supply of the country,
and make a repetition Of the recent
currency stringency less probable.
But there is not so much the ne
cessity Of a larger currency supply
as some measure to restore conf
dence and bring money from its hid
ing place into circulation There is
money enough--more than we have
ever had and there is a greater ne
cessity for sane banking laws than
a more elastic currency. The panic
was pretipitated by lax banking
methods which enabled few bank
presidents TO wreck their own in
stitutions.
A vast number of currency meas
ures are being introduced Senator
Culberson, the minority leader i'm the
nate, has introduced a bill. which
is devoid of questionable methods.
providing for the protection of de-
positors in national banks. which
provides lin every case where any
national bank which accepts the pro-
visions Of this act becomes insolvent
or is unable to pay it's depositors in
whole, or in part, all national banks
which shall accept the provisions of
this act shall pay whateye- may be
due the depOsitOrs of such bank
which ii is unable Immediately to-
pay, and the amount 10 be paid bv
each Of said banks shall be in pro-
portion 10 the combined capital and
surplus Of each as shown by thu
statement of condition of the banks
10 the comptroller of the currency
next preceding he insolvency or
failure TO pay deposits"
The bill is intended TO cover only
individual deposits subject to check
and which bear no interest. but in
such cases interest at the rate OF 6
per centum per annum is required
10 be paid from and after insolvea-
cy, until paid.
The Comptroller Of the CurrerCv
is required to assess all national
banks accepting the law their pro
rata Of the Indebtedness due deposit
tors by any insolvent bank. and to
collect and pay the same to deposit
Ors
After exhaustiug an the resource
Of the failed bank and the liabilities
OF the stockholders. the Comptrolla.
n required 90 refund the remainder
20 the respective banks which have
contributed heir pro rata 10 the
payment OF the deposits lu such in-
solvent bank in proportion TO the
contributions of such banks
Banks which do not a-e,p. the
conditions OF the BIN arc no boz DEE
MED i's benefits .n case becomes
q law. So public money fs TO boo de-
posted or rIuair .n any national
bank which deci.nes or fails to- ae-
rapt The provisions Of ,a.s a,,
a measure OF this kind would do
more 20 restore confidence and bring
out money from lts hiding places
than any flexible" currency such
as The A.dr.,h Dur how D elastic.
and a. Do same time would not de-
prer.ate our currency