The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1908-01-31

t,i ore.halg Of PER cent month dur
oar the ptrUi 81 circulation 1hls
tax IS ~ force The retirement of the
notes when the money stingency has
passed
The amount ccllece4d from taxes IS
90 be paid into the fpserVe fund for
Tie redemption Of United States and
other notes This is an entirely new
idea Is IS based on the principle that
as the reserve fund Is behind the new
notes the tax should 90 to the re.
serve fund.
Section amounts to- x repeal OF
the law limiting the amount of circn-
lating national bank notes That mag
be Withdrawn each month 1t pro.
vides that when a national bank he.
sires to withdraw its circulating notes
secured by United States bonds It
may deposit lawful money with the
treasurer OF the United States and
withdraw n propoftiOnate amount of
bonds held as security for ite circulat.
ine notes li the bank wishes to with.
draw circulating noteg secured by
bonds 0ther than those on the United
States ii may do SO by depositing
either lawful money or national bank
notes and Withdraw a proportionste
amount of the unofficial bonds.
Section 6 amends the law so as to
provide that the emergency notes
shall be the Same as notes now IN
circulation in denominations OF S5.
$40, $40. S50.Sl0O. $500. 81 900. and
$4,000 to supply the national banks
applying Tor them THESE notes shall.
upon their face value. state that they
viii b,e redeemed by the United
states ia lawful money.
This Is very important section in
that It places on the notes an abso-
lutte pledge of redemption IN lawful
money instead of the statement OH ma
tional bank notes nov ~ circulation
that they are secured BY bonds de.
posted in the treasdrW The pledge
Is TO be attested by the signatures of
the treasurer and the register and
the imprint of the treasury seal. and
q promise topay on demand is to be
Included. signed by the president or
wce.president or the cashier of the
issuing bank
Another important provision of sec.
tion 6 Is that circulating notes print.
cd In blank. with spaces for the sig
natures Of bank officers, shall be lie.
positod at the request OF "a bank in
the sub-treasury neaIesI that bank In
this way the emergency notes can BE-
taken from the sab treasury and is
sued within not more than "a hours
in most cases
Section provides that ihe circulat
ing notes shall be redeemed in law
fnl money instead Of n United
states notes. as az present
Section s provides that national
bank associations located outside ol
reserve OF central reserve cities which
are now required 10 keep a reserve
equal TO 10 per cent of their deposit
liabilities hereafter shall hold at al
time at least two-thiids OF such re
Servo m lawful moL9y Under the
prcst rat law only twoilfths OF the lt
per cont reserve is required to be
held in lawful money by the bank
The new provision increases this
amount to two-ihirls. or 10 per cent
of the bank deposit liabilities.
Many Proposed.
The clause proposed allowing the
comptroller to Issue The emergency
money if business conditions de
mand such additional circulation" I,
having hard and lonesome contest
with even the In own friends of tht
ldll alleging that It gives discretion
AIRY pnwos TO one individual not in ac
cordanc with our system of govern
ment
Another amendment proposed is
that when bonds are offered. the,
mus be either those of "a state, cit,
or OF some institution where the is
sue of certificates was based on dol
lar for a dollars worth OF stock. an,
on that amendment hinges the fat,
lof the entire bill, for its advocates
would rather adopt the Fowler bill 0
none at an, than to lose the right {,
issue on industrial o. railroad bondI
at per cent of their cash value a
time OF transaction
lnasmuch as the comptroller of Thu
currency and the owner OF the bond
would be the only court TO decide oi
the cash value. few car loads o
worthless paper would soon find ii
way into the vaults Of the treasury ii
| exchange for what could be handle
easier than watered stock.
/ The Object Bad
Denude the bin OF any ulterior INC
\ tive upon the part of its parents. an
the sober candid thought OF the ave-
age man must be that it brings abou
a worse state OF affairs than the on
already existing II creates more fea
Of our financial Institutions. and. sa
what you win and hold what opinio
you may, it cannot be denied th
gambling transactions of the stoc
brokers, and reckless handling of 8,
curities brought about the panic
the fall, and from which we are iui
now emerging.
People Protest.
The protest Of the people is gener
against this measure II Is conhne
10 no portion Of the country. and eve
iinanciers who deal in honest secui
ties see naught in the attempt sa,