Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-02-08
MINORITY CURRENCY BILL"
Introduced in the House by Democratic
Leader Williams.

ISdQCI Vvbh'oh'S'
washington. Feb. What Will b.
known as "The minority currency Dill
was introduced today by Representa-
tive John Sharp Williams of MisslS-
sippi. the Democratic leader OF the
House. who drew the measure during
a conference of Democrats behind
closed doors today. Those beside Mr.
Williams who participated in the con-
ference were Leads. Ga; Puio, La;
Glass, Va: Gillespie, Tex; Crawford.
\. c.. and McHenry, Philadelphia all
members of the committee on banking
and currency Entire harmony is said
to have marked the meeting.
1t is understood that the bill was
as drawn by Mr.. Williams may be sub
Jet to slight amendment by its sup
porters But il will come. before the
House in the shape of a minority re-
port from the banking and currency
committee in its present form.
Among the provisions of the bill are
the following:
it repeals all laws permitting nation
al Laiiks to keep thrce-fifths Of their
reserves in national banks of reserve
CltitS sllli Sliiiiii law cIHittihS, .'eNh
deposit Of one-half OF the reserve
amounts.
1t provides that not less than one
half Of the reserves now required to
be kept in lawful money in central re-
serve cities shall hereafter be held in
gold or gold certificates.
II does away with the payment of
national bank examiners ny the fee
system and substitutes salaries not
less than $4,000 nor in excess of $4,000
yearly, with actual expenses.
1t provides that the total liabilities
Of any national bank, inclusiv" of the
liabilities of its members, snail not
exceed onr-tenth Of the banks paid in
and uniinpaired capital stock and one
tenth of its uniElDaired surplus fund:
and that in no event shall the Iiabili-
ties exceed 30 per cent of the capital
stock "hut the discount of bills of ex-
change drawn in good faith against
actually existing values, and the dis
count of commercial or business pa
per actually owned by the person ne
eotiating il, shall not be considered as
liabilities
Violation Of this section is made a
misdemeanor punishable by fine or
imprisonment. No national bank shall
loan in the aggregate more than sew
en- times the amount of its paid-up
capital plus its unimpaired surplus
and violation is punishable as provid-
ed in the section preceding.
Any national bank may keep 20 per
cent OF its reserve in United States
bonds or in the bonds Of states or in
the bonds Of certain municipalities,
but not more than one-fourth Of the
total reserve may be- kept in state or
bonds: and the bonds shall
be acceptable only of such municipal
tiles as have Maintained their bonds
at or above par for six years preced-
ing. and have been incorporate exist
encc il years and have never default
ed i'll their funded debt. and whose in
debtedncss does not exceed is per cent
Of their taxable property. The accep-
liability Of such bonds as reserve Sc
curity shall be passed on by the at
torn"y general Of the state in which
the municipality is located: and these
bonds shall be known as ''in:er-con-
vcrtablc bonds"
Til" elastic currency feature Of the
blll :" contained in section which
provides that these !ntcr-convertable
bonds may be deposited in the nearest
snh-treasury" and the depositing bank
shall reCeiy" in luc their value Of
United States emergency treasury
notes. These notes shall be in the ma
turc OF IL loan subjected to taxation
of onc-eighth of l per cent. for the
first four months of their issuance:
ore-hiiif Of per cent. for the second
four months. and l per cent. thereafter.
When the banks feel that the emer-
gency has been passed and the loan
notes are no longer needed it may re-
deem them with actual money. Such
redemption moneys shall constitute q
special fund for the purpose of re-
deeming United States emergency cur
rcncy notes whenever they are pre-
sentd for payment. the notes to be
Their cancelled and destroyed. These
notes shall be legal tender.
For the creation of a fund of SIS
ooo,0oo for the payment of depositors
of failed banks operating under the
provisions of this law, there is author
lZed The imposition of the tax of one
sixteenth of / per cent on the de-
posits Of banks SO operating and whose
consent to be so taxed has been OBJ
tanned.
The final section of the bill provides
that no bank officer shall make a loan
Tor the purpose of stock gambling and
nxeS the penalty for violation a fine
in the amount of the loan or impris-
Cpment