The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1908-02-08
1.-THE MINORITY
CURRENCY BILL
John Sharp Williams
introduces It.
IT ABoLEHEs FEE SYSTEM
Repeats All Laws Pertaining to
Bank Reserves.
Provides That Total Liasnitiss Of Any
National Bank shall Net Exceed
one Tenth of Capstal
stock.
I ABoLEHEs FEE SYSTEM

known as The minority currency pttt
was introduced today by Representa-
pi, the Democratic leader of the House.
who drew the measure as result OF
a conference of Democrats behind
closed doors today.
Those beside Mr. williams who par
ticipated in the conference. were:
Representatives Lewis. OF Georgia;
Pujo, of, Louisiana; Glass. of Virginia;
Gillespie. of Texas; Ollie James. OF
Kentucky; Crawford, of North Caro-
lina. and Mcfienry. Of Pennsylvania. all
members of the committee on banking
and currency. Entire harmony Is said
to have marked the meeting,
1t is understood that the bill as
drawn by Mr.. Williams may be sub
jected to slight amendment by its sup
porters but It will come before the
House In the shape OF q minority re-
port from the banking and. currency
COMMITTEES In its present form. Among
the provisions of the bill are the fol-
lowing:
1t repeats all laws permitting ma
tional banks to keep three fifth Of their
reserve in cities and similar laws per-
hitting such deposit OF one half OF
the reserve amounts.
1t provides that not less than one
half OF the reserves now required to be
kept IN LAWFUL money IN StubE1A ~
serve cities shall be hereafter held In
gold or gold certificates,
Fee sys&em Abolished.
IL does away with the payment OF
national bank examiner by the fee
system and substitutes salaries of not
less than $4,000 nor in excess Of So
600 yearly. with actual expenses.
II provides that the total liabilities
OF any national bank, inclusive Of the
q hlftfna ~ % vnA N - an~-
coed one-tenth of the banks psid-in
and unimpaired capital stock and one
tenth OF its unimpaired surplus funds:
and that in no event shall the liabili-
tics exceed 80 per cent Of the capital
stock. But the discount Of bills OF ex-
change drawn IN good faith against ac-
tuallx existing salues and the discount
Of commercial or business paper actaai-
~ owned by the person nsgnfis ting Il
ahhif not be considered as liabilities.
Violation OF this, section Ia made d
Snisdemeafor punishable BY nne or in-
prisonment.
No national bank shall loan in the
aggregate more than seven times the
amount OF its pstd-up. capital plus its
unimpaired surplus.
Violation is punishable as provided
In the section preceding
Any national bank may keep SO per
cent OF its reserve in United States
bonds or bonds Of States or in the
bonds Of certain municipalities; but no
more than Onezfourtli OF the total re-
serve may be kept In State or munici-
pal bonds; and the: bonds shall be ac-
ceptable only of such municipalities as
have maintained their bonds at par or
above seven years preceding and have
been In corporate existence ten years.
and have never defaufted in their
funded debt, and whose net Indebted
ness does not exceed IS per cent Of
their taxable property. The accepta-
btlity Of such bonds as reserve security
shall be passed on by the Attorney
General OF the State. in which the mu-
nicipality is located; and these boads
shall be known as Inter convertible
bonds"
The Comptroller Of the Currency, I'm
mediately after passage of the bill,
shall furnish copy of the new law to
each e. bank In the country and inquire
IL II VIII accept the provisions. Con-
sent shah be binding and the Iiabiii-
ties attaching to consent may be en-
forced by the Comptroller. Agreement
to accept the provisions shall entitie
state banks and trust companies to the
benefits OF the new law.
EIactic Currency.
The elastic currency feature of the
bill 10 contained in a section which pro-
vides that these 'inter-convertlbIe bonds
may be deposited. ''in the nearest sub.
treasury" and those depositing bonds
shall receive in leu thereof United
States emergency treasury notes. These
notes shall be in the nature OF loan.
subject to a taxation OF one-eiEhth Of
one per cent for the first four months
Of their Issuance. one-half OF one per
cent for the second four months, and
Dne per cent thereafter. When the
bank feels that the emergency has
passed and the loan notes are no longer
needed it may redeem them with actual
money. Such redemption moneys shall
constitute special fund for the pur-
pose OF redeeming United States emer-
gency notes whenever they are pre-
rented for payment. the notes to he then
and destroyed. These notes
shall be legal tender.
For the creation of a fund of $4,000
300 for the payment Of depositors of
Jailed banks operating under the pro-
visions of this law. there Is authorized
he imposition of tax of one-sixteenth
If one per cent on the deposits OF banks
20 operating and whose consent to be
70 taxed has been obtained.
The final section OF the bill provides
hat no bank officer shall make a loan
or the purpose Of stock gambling, ana
ixes as the penalty for violation, a ana
n the amount of the loan or imprIson
nent.