Heppner gazette. [volume] (Heppner, Morrow County, Or.) 1892-1912, 1908-01-16
CURRENCY BILL
FOR THE HOUSE
Entirely New System of Regulating
Bank Circulation.
Will Be Secured by Banks Assets-
Banks to Deposit Money With
Government to Guarantee Both
Notes and eposits-Framed and
Managed by Fowler.

washington, Jan. 9.-The 6ub-com
mittee Of the house committee on bank
ing and currency, to which was entrust
ed the framing Of bill to increase the
elasticity of the currency, reached 9
conclusion yesterday and will report
favorably to the full committee bill
drawn in the main by Chairman Fow.
Ter, Of the committee. The bill will
be introduced by Fowler and referred
to his committee, where it will form
the working basis for the framing of a
bill Of possibly the same scope and
tenor.
The bill provides for the complete
retirement Of all outstanding national
bank bond secured currency and author
ICES In lieu thereof currency based
upon general assets OF the banks, to be
worked out in this way:
The controller of the currency will
designate throughout the country Ger.
tain redemption cities, go that there
shall be redemption city within at
least "a hours reach OF every national
bank. The national banks will indi-
cate to the controller OF the currency to
what redemption city they wish to be
joined. The controller will then select
3 time and place within each redemp-
tion district for the organizing 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 a time and
place designated and elect board of
managers to consist of seven members.
The seven will elect chairman, who
will become deputy controller OF cur
rency and assume control of his re-
demption 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 money
in lieu Of other national bank bond Sc
cured outstanding notes. Then, il the
banks application therefor is indoraed
by the board of managers of the re-
demption 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
2 per cent per annum. Each bank will
be required to deposit as guarantee
fund with the treasurer of the United
States per cent of its average deposits
for the preceding IL months and per
cent of the credit notes which 1T takes
out. The revenue thus obtained is to
create anc support a national guaran-
tee fund Of $500, 900, 900 for the guar
antee Of both the deposits and the out
standing banknotes Of every national
bank. Eighty per cent of this fund is
to be invested in United States bonds
drawing 2 per cent interest, while the
remaining 20 per cent is to be deposit
ed in banks of the various redemption
cities for the purpose Of redeeming the
guaranteed credit notes of the banks of
the various redemption districts.
When the national guarantee fund
reaches $25 100000, which would be
almost simultaneous with the birth OF
the new law, the government is re-
uuired to return to the banks the Unit
ed States bonds now held as security
for Federal deposits, 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 guaranteed
fund in 2 per cent bonds and regain
control. In buying these bonds the
banks holding them shall be paid their
original purchase price, providing their
exact purchase price can be proven.
1t is Fowler's idea. as embodied in
the bill, to have the new credit notes
printed on green background in differ
entiation from the yellow background
of the gold notes and white background |
of the silver certicafites.