Rocky Ford enterprise., 1908-02-14
DEMOCRATIC CURRENCY BILL.
Framed by Minority Members Of House
Committee on Banking.

Committee on Banking.
Washington.-What will be known
as "the minority currency biil." was
introduced Friday by John Sharp VIII
liams OF Mississippi. Democratic leader
OF the House. who drew the measure
as a result OF a harmonious conference
Of Democratic members Of the house
committee on banking.
The bill will come before the house
In the shape Of a minority report from
the banking and currency committee
In Its present form.
Among the provisions Of the bill are
the following:
II repeals all laws permitting ma.
tional banks to keep three-Afths OF
their reserve In national banks OF re-
serve cities aud similar laws per
hitting such deposit of one.haif OF the
reserve amounts.
II provides that not less than one
half Of the reserves now required 10
be kept In lawful money In central re-
serve cities shall be hereafter held In
gold or gold certificates.
II does away with the payment of
national bank examiners by the fee
system, and substitutes salaries not
less than $1,000 nor In excess OF $5.'
900 yearly. with actual expenses.
II provides that the total liabilities
OF any national bank. inclusive Of the
liabilities Of its members. shall not cS'
cecd one-tcnth OF the banks paid In
and unimpaired capital stock and one
tenth Of its impaired surplus funds:
and that In no event shall the linbii'
tiles exceed thirty per cent Of tho cap
itai stock.
No national bank shall loan In the
aggregate more than seven times the
amount OF Its paid up capital plus It's
unimpaired surplus.
Any national bank may keep hfty
per cent OF Its reserve In United States
bonds or bonds OF states or In the
bonds Of certain municipalities. but
not more than onc-fourth Of the total
reserve may be kept In state or mum
cipal bonds: and the bonds shall be- nc
ccptnbie only Of such municipalities
ns have maintained their bonds nj or
above par for six years preceding. and
have been In corporate existence ten
years and have never defaultcd In
their funded debt.
The comptroller OF the currency. I'm.
mcdiatciy after passage OF the bill.
shall furnish copy OF the new law
to each bank In the country and In
quirc II II will accept the provisions.
Consent shall be bindin. and the lia.
bilitics attaching to consent may be en-
forced by the comptroller. Agreement
to accept the provisions shall cntitlc
state banks and trust companies to the
benefits Of the new law.
The elastic currency feature OF the
bill In contained In section which
provides that these intcrconvcrtibl.
bonds may be deposited in the near.
est sub.trcasury. and the dcpositinr
bank shall receive In lieu thereof
United States emergency treasury
notes" subject to taxation. rciccmablc
ut any time and lcsni tender.
For the creation of n fund Of Si5..
100000 for the payment OF dcpositors
Of failed banks operating under the
provisions Of this law. there In author.
izcd the imposition Of tax OF onc.six.
tecnth Of one per cent on the deposits
OF banks so operating and whose con-
sent to be so taxed has been obtained.
The final section of the bill pro
vidcs that no bank officer shall make
n loan for the purpose Of stock gam.
bling.