The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-01-08
FINANCIAL BILL
BORN IN SENATE
Measure Which the RepubIi-
cans Have Had in Process of
Incubation introduced.
ALDRICH STANDS SPONSOR
PROVIDES FOR ADDITIONAL
BANK CIRCULATION.
ALDRICH STANDS SPONSOR

Washington, Jan. THE financial
bill which has for some time been in
preparation by leading Republican
members of the senate committee on
finance. was today printed and given to
the public. The bill provides for an
additional issue of bank circulation
which snail at no time exceed $3.50, 00O,-
600 on bonds other than those issued by
the government, including state and
municipal bonds in approved cases. The
comptroller of the currency is given
discretion in issuance OF the proposed
currency. and is authorized to decide
as to the time and amount to be
av arded to any banking institution.
1t is provided that increased circu-
lation shall in no cose exceed Is per
cent of the bonds deposited.
Bill in the Senate.
Senator Aldrich introduced a bill I'm
the senate soon after that body con-
vened today. Following are the first
three sections of the bill:
THAT any national banking associa-
ton which has circulating notes out
standing, secured by the deposit OF
United States bonds to an amount of
Tot less than so per centum of its cap
ital stock, and which has surplus of
not less than 20 per centLm, may make
application to the comptroller of the
currency for authority to issue addi-
tional circulation to be secured by the
deposit Of bonds other than those of
the United States.
''The comptroller of the currency, If,
in his judgment business conditions
demand such additional circulation
and the condition of the association
making the application warrants the
issue. shall fix the amount, within the
limitations hereinafter imposed, of such
additional circulating notes to be is
sued.
Character of Securities.
Whenever after receiving notice OF
such approval any such association
shall deposit with the treasurer or any
assistant treasurer Of the United States
such of the bonds described in section
2 of this act as shall be approved in
character and amount by the treasurer
of the United States and secretary of
the treasury. it shall be entitled to re-
Ceive, upon the order of the comptroller
Of the currency, circulating notes, in
blank. registered and cOuntersigned as
provided by law. equal in amount to IS
per cent Of the market value. as fixed
by the treasurer of the United States
of the bonds SO deposited, such addi-
tional circulating notes to be used
held and treated in the same way as
circulating notes Of national banking
associations heretofore issued and Sc
cured by a deDosit of United States
bonds. and shall be subject to all the
provisions of law affecting such notes.
provided, that the amount of such ad-
ditiOnal circulating notes. delivered at
any time to any association. shall not
in any case exceed the limit fixed for
such issue by the comptroller of the
currency: and. provided further, hat
the total amount of circulating notes
outstanding of any national banking
association secured by the United
States bonds or otherwise. shall not at
any time exceed the amount of it's IN
impaired capital and surplus; and pro-
vided further. that there shall not be
outstanding at any time circulating
notes issued under the provisions Of
this act to an amount of more than
S250,000, 600; and, provided further, that
al acts and orders of the comptroller
of the currency and the treasurer of
the United States authorized by this
section shall nave the approval of the
secretary of the treasury.
Section 2.
Section THAT the treasurer of the
United States. with the approval of the
secret ary Of the treasury, may accept
as security for the additional circulat-
ing notes provided for in the preceding
section. bonds or other interest
bearing obligation of any state of the
United States. or any legally author f.
jZed bonds issu9i for municipal pur-
poses BIZ any city or county in the
United States, which has been in exist
ence as a city or county for a period OF
fifteen years. and which for a period
of ten years previous to such depos-
its has not defaulted in the pay
ment of any part of either principal
or interest of any funded debt author
lied TO be contracted by il, and which
has at such date more than 10000 in
habitants as established by the last
census, and whose net indebtedness
does not exceed 10 per centum of the
valuation of the taxable property
therein, to be ascertained by the last
preceding valuation of property for the
assessment of taxes; or the first mort
gage bonds of any railroad company,
not Including street railway bonds,
which has paid dividends of not less
man per centum per annum regular
~ and continuously on its entire cap
ital stock for period of not less than
five years previous to the deposit of
Continued m Pzoa .