The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-01-31

municipal and railway bonds as the linn
IL of the issue of notes against them has
been amended so that railroad bonds
alone are TO be taken at IS per cent of
their market value. Notes may be is
sued against deposits of municipal and
county bonds up to 80 per cent Of their
market value.
The limit of circulating notes that
may be issued under the act has been
raised from $3.50, 900, 900 to $500 000, 600.
The section of the bill relating to the
acceptance of Understanding obliga-
tions or any legally authorized bonds OF
states, cities, towns and counties as de-
posits for the security for additional
bank currency issued against them has
been broadened considerably by amend
ment.
The words ''or other legally consti-
tuted municipality or district" which
have been added. are taken to mean
that bonds issued by school districts
and townships will be acceptable pro-
viding they conform to requirements
specified. The population of these mu-
inequalities is fixed by the reported bill
at 10000 instead of 10000 as originally
proposed.
information to Be Obtained.
There is an amendment making it the
duty of the secretary of the treasury
to obtain information with reference to
the value and character of the munic-
ipal and railroad securities authorized
to be accepted under the provisions of
the act, and he is required from time to
time TO furnish information to national
banking associations as to such banks
as would be acceptable as security, 10
the end that information concerning
railroad bonds may be gathered with
Of
The clause of the bill, relating to the
acceptance of railroad bonds as security
for note issues. is amended so as to in
clude only the. bonds of roads which
comply with the existing law in re-
porting statements of their condition
and earnings to the interstate COM
merce commission.
The provision I'm the old bill requiring
a memorandum on the back of each
bond showing that the legal title of the
same has passed to the treasurer of the
United States in trust has been stricken
out, and it has been made the duty of
the secretary of the treasury to pre-
scribe regulations for conveying title.
Mandatory on Comptroller.
The provision of the original bill re-
lating to the preparation of circulating
notes in blank to an amount equal to
so per cent of the capital stock of a
bank requesting an issuance has been
changed so that it is mandatory on the
comptroller to proceed as soon as prac-
ticable TO prepare notes for all national
banks so that they may be ready for
issue Immediately upon the receipt of
applications and after securities have
been approved.
In the bill as reported, there is no
mention of the reserves of banks locat-
ed outside of reserve or central cities.
In the original bill it was required that
they should hereafter hold at all times
at least two-thirds of their reserve in
lawful money.
1t is specifically provided that all
acts and orders of the comptroller of
the treasury and the treasurer of the
United States authorized by the act
shall have the approval of the secretary
of the treasury.
then take an appeal to the state su-
preme court and finally to the United
States supreme court.