The semi-weekly messenger., 1908-01-10

Sucn Cities TO be Selected by the
comptroller of the Currcncy-Othcr
| Provisions.
| Washington. January S.-The sub
lcOmmittee of the house committee on
banking and currency. ta~which was
entrusted the framing OF bill to IN
ICrease the elasticity of the CURRENCY
reached = conclusion today and will
report favOrably to the full committee
q ol!I drawn by Chairman Fowler of
the committee.
| The bill will be introduced by Mr.
| Fowler and referred to his committee
| where 1t Will fOrmb the working basis
for the framing of bill
| The bill provides for the complete
retirement OF all present outstanding
national bank hOnd-secured currency
and authorizes in lieu thereof q cur
rency based upon general assets OF
the banks in this way.
| The comptroller of the currency will
idesignatc throughout the country Ger.
| tain redemption cities, 50 that there
iShall b" redemption city within at
| least twentv-four hours reach OF
every national bank The national
banks will indicate to the comptroller
of the currency To what redemption
| city they wish to be joined The
IcOmrtrOller will then select q time and
place WITHIN each redemption district
for the Orga niZlng Of that district in
the following manner:
| Each national bank in that district
regardless Of its capital stock. will bn
entitled to one vote Representatives
| of the banks will meet 1T a time AMI
| place designated and elect board Ot
managers. to consist Of seven mem
berS. These seven will elect 2 chair
man, who will become a deputy comp
| trOllcr of the currency, and assume
lHn of hi do, III lfs.t-
cept that he shall not have charge of
| the enforcement of the criminal
statutes.
Each national bank is authorized 10
present to the secretary OF the treas
| Ery national bank notes and lawful
moneys il lieu Of other national bank
| Ibond-Secured outstanding notes. Then
| if the banks application therefor is
| endorsed by the board of managers Of
| the redemption district 10 which it
| belongs, the bank will receive guar
antaed credit notes to the amount Of
Tits capital stock, These notes will be
subject to tax or per cent. per an
mum. Each bank will-be required to
deposit as a guaranty funi with tn"
treasurer OF the United States i've per
cent. Of its average deposits for the
preceding twelve months, and five per
cent of the credit notes which il take;
out. The revenue thus obtained is
to create and support national
guaranty fund Of S500.O0O.oOO for the
guaranty Of both the deposits and the
outstanding bank notes Of every ma
tiOnal bank Eighty per cent Cf the
fund Is to be invested in United states
bonds drawing two per cent interest !
while the remaining twenty per cent !
is to be deposited In banks OF the va
riOus redemption cities for the purpose
Of redenminC the guaranteed credit /
notes Of the banks in the various re- 1
demDtfon districts
When tho national guaranty fund /
reaches $25,O0O.O6O, which would be (
almost simultaneous with the birth f,
Of the new law. the government is re- /
Qu1rei to return to the banks the Uni
ted States bonds which the govern
ment now holds rs security for federal ?
deposits. the object being to enable
the banks 70 get control Of the bonds
so that the govern1en. can invest
the eighty per cent Of the guaranty
fund in two per cent. bonds and ra-
gain CO~trol.
In buying these bonds. the banks
holding them shall be pain their ORR
Cinal purchase price. provides the
bonds were bought before January !.
1908, and !rOviIing exact purchase
price can be proved.
Mr. Fowler today made the follow