Coeur d'Alene evening press. (Coeur d'Alene, Idaho) 1907-1929, 1908-01-08
FINANCIAL BILL
IN THE SENATE
Measure Provides Basis for Elias
tic Currency

urer of the United States, with the
approval of the secretary of the treas
ury, may accept for the purpose of
this act, securities herein enumerated
of such proportions as he may from
time to time determine, and he may
at any time require the deposit of ad-
ditional securities or require any as
ISOLATION or change the character of
the securities on deposit.
DepOsiting Bonds.
Section 3. That all bonds deposit
ed to secure circulating notes, issued
in accordance with the terms of this
act shall be transferred to the treas
ury of the United States in trust for
the association depositing them, with
a memorandum to that effect attach
ed to or printed on each bond and
signed by the cashier or some other
official of the association making the
deposit. A receipt shall be given to
the association by the comptroller of
the currency or by clerk authorized
by him for that purpose, stating that
such a bond Is held in trust for the
association on whose request the
transfer is made and as security for
the redemption and payment of any
circulating notes that have been or
may be delivered to such association.
No assignment or transfer of such
bonds by the treasurer shall be deem
ed valid unless countersigned by the
comptroller of the currency.
Taxation.
The remaining portions of the
bill consist of additions to the exist
ing law. These conditions and addi-
lions provide for a tax on the aver
age amount of such notes of a bank s
circulation based upon the deposits
of bonds other than bonds of the I'm
tied States, provision being made for
tax on notes secured by Panama
canal bonds amounting to one-fourth
of one per cent each half year on
notes secured by two per cent bonds
Associations having on deposit bonds
bearing interest at a higher rate thar
two per cent per annum are required
to pay a tax of one-half per cent each
half year on notes thus secured.
"A monthly tax of one-half of one
per cent is imposed upon the aver
age amount of notes issued on bonds
other than bonds of the United
States, and monthly returns, undel
oath, are required of an association
to show the average monthly amour
of notes so secured in circulation
Exempting United States bonds cal
led for redemption by the secretar.
of the treasury, it is permitted b.
the bill that national banking assoc
iations may withdraw their bond
held for circulating security by tn
deposit of lawful money to a proper
tionate amount"
Provision is made for the engraV
ing of suitable notes in convenien
denominations.
Another section of the bill pre-
vides that the circulating notes of
national banking association, whe
presented to the treasury for redemI
ton as provided in section 3 of tn
act approved June 20, 1874. shall b
redeemed in lawful money of tn
United States.
The bill also requires that natior
, al banking associations located GU
side. of reserve or control reserve
cities, which are not required by la
| to keep a reserve equal % Is pr
| cent of their deposit liabilities, sha
! hereafter hold at all times at lea
! two thirds of such reserve in lawfl
money"
Ea01as Install