The evening world., 1908-01-08
HOUSE CURRENCY
BILL PH0YIyES A
GUARANTEE FUNu
Redemption Agencies i'll Cities
Also Feature - Credit
Notes for Circulation.

WASHINGTON. Jan. s-The sub
committee OF the House Committee on
Banding and Currency. to which was
intrus;ed the framing of bill to in
crease the elasticity OF the currency.
reached u conclusion to-day and will
report favoraNly 10 the flll committee
a bill drawn in the main by Chairman
Fowler Of :he committee
The bill! will be introduced by Ny
Fowler and referred - his committee.
where IT Will form the WORKING basis
for the framing OF bill OF possibly
the same tenor and scope
The bill provides for ne ret!rcinen;
o. all present outstanding national
bank bond secured currency ana 4u-
thprizes in .-"u thereof 4 currency
based upon general assets o. the bank
10 be worked out in tins way.
The Comptroller OF the Currency viii
designate throughout the country Ger
tain redemption cities, 50 tha. tEeI-
sha!l be redemption city within AZ
least twenty four hours reach of every
national bank. The national banks ~.
indicate TO the Comptroller OF tn. Cur
rercy TO what redemption city they W :.
TO be joined The Comptroller wi! then
select time and place w.thln each re-
de'nption district for the organizing Of
that district in the following. manner.
Each national bank in that district.
regardless C.. its capita. stock. vii, ne
entitled to one vote. Representatives. of
the banks Will meet at time and place
designated and elect a board OF man
ayers to consist o. seven members
These seven Will elect u chairman. who
will become a deputy comptroller OF the
currency and assume control OK lis re
demption district. except thai he shall
not have charge Of the enforcement Of
the criminal statutes.
Es Ch national bank is authorized 70
present TO the SeCretar.- OF the Teas
ury national banhnotes and lawtG!
moneys in lieu OF otter national ham"
eond-secur!ng outstanding notes T.ru
I. the bank $ application therefor is III
dorsed Ov the Board Of ma-.c gers OF
the redemption dis trict 10 which il e
longs the bank Will receive guaranteed
credit notes 20 the amount OF its cup.
tai stock These notes VIII be subject
10 a tax OF two per cent. per amum.
Each bark will oe required 10 deppsi
urer OF the United states I'VE per cent
OF its average deposits for the p~cCed-
ing twelve months and five per cent. of
the credit notes.
ard support a national guaranty fund
OF 10000 100 for the guarantee II both
the deposits and the outstanding bank
notes OF every nation bank rAEaiE
per cert. o. this fund Is - be invested
in United states bonds drawing rn-
cent. interest, while the remaining 20
per cent. is 20 he deposited in banks ot
he various redcnptUnal cities trr the
purpose of redeernirE the guaranteed
credit notes Of the banks in :he various
redemption districts.
When the national guaranty fund
reaches $1,000 0cc-whch wCJ.d he al
most simultaneous win the birth ~ tie
new law-the Government is r,uured tl
return to the banks of tae Jaitel states
bonds whhrh tho Government sow no'ds
n : security for federal l"T.sl's .h" oh-
iect he'HR 70 enable tl' banks 20 get
control of the bonds So that :ha GOV
ernnen. can inveS, th- - per .nu., ~
the guaranty fund n tNo rer cent. bonds
and regain cortro.