Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1908-06-04
The CURRENCY BILL.
Text of Most Important Sections OF
"Emcrgcncy" Measure-Limited
To Six Years.

The Aldrich-Vreeland compromise cur
rency bill. to be limited to six years, has
the following chief features:
That national banking associations,
each having an unimpaired capital. and
a surplus Of not less than 20 per centum,
not less than ten in number. having an
an aggregate capital and surplus of at
least 100000, may form voluntary as
sociations to be designated as national
currency associations The banks uniting
to form such associations shall. by their
presidents. acting under authority from
the board of directors, make and file with
the secretary of the treasury n Certitl-
cate setting forth the names of the banks
composing the association the principal
place of business of the association, and
the name Of the association. which name
shall be subject to the approval of the
secretary of the treasury.
Upon the filing of such certificate the
associated banks therein named shall be-
come a body corporate. and by the name
so designated and approved may sue and
be sued, and exercise the powers OF a
body corporate for the purposes hcrcln-
after mentioned: Provided that not more
than one such national currency associa-
ton shall be formed in any city: provid-
ed further. that the several members of
such national currency association shall
be taken. as nearly as conveniently may
be, from territory composed of a State
or part OF state, or contiguous parts
of one or more States: and provided fur
Their, that any national bank in such city
or territory having the qualifications
herein prescribed for membership in such
national currency association shall. upon
It's application TO and upon the approval
of the secretary Of the treasury, be adj
mitted to membership in national cur
tory, and upon such admission shall be
deemed ana held a part of the body cor
porate. and as such entitled to all the
rights and privileges and subject to all
the liabilities OF an original member; and
provided further. that each national cur
rency association shall be composed ex-
cusively Of banks not members OF any
other national currency association.
The national currency association, here
in provided for, shall have and exercise
any and all powers necessary to carry
out the purposes OF this section, namely,
and control OF the secretary of the treas
ury. as a basis for additional circula ton.
any securities, including commercial
paper. held by national banking as
| ISOLATION. For the purpose OF obtaining
such additional circulation any bank be-
longing to any national currency associa-
ton, having circulating notes outstand
secured by the deposit of bonds of the
United States to an amount not less
than 40 per centum of It's capital stock
and which has its capital unmpared and
n surplus of not less than 20 per centum
may deposit with and transfer to tho
association, in trust for the United States
for the purpose hereinafter provided
such of the securities above mentioned
as may be satisfactory to the board OF
| the association.
The officers OF the association may
thercupon, in behalf of such bank. make
application to the comptroller of the
comptroller of the currency for an issue
| OF additional circulating notes to an
| amount not exceeding 10 per centum Of
the cash value of the securities or COM
mercia paper SO deposited. The comp
troller Of the currency shall Immediately
transmit such application to the score
| tary of the treasury with such recon-
mendation as he thinks proper, and if,
| in the judgment of the secretary Of the
| treasury, business conditions in the To-
cality demand additional circulation. and
! if he be satisfied with the character and
value of the securities proposed, and
! that lien in favor of the United States
on the securities so deposited and on the
assets of the banks composing the assoc
citation will be amply sufficient for tho
protection of the United States. he may
direct an Issue of additional circulating
notes to the association on behalf of such
bank. to an amount in his discretion not,
however exceeding 10 per centum of the
cash value OF the securities so deposited.
| Provided that upon the deposit of any
of the State, city town, county or other
| municipal bonds, of a character describ-
| ed In section 3 of this act, circulating
| notes may be issued to the extent of not
exceeding 80 per cent. of the market
value of such bonds so deposited, and,
provided further, that no national bank
| ing association shall be authorized In
any event to issue circulating notes
based on commercial paper in excess of
30 per centum OF its unimpaired capital
and surplus.
| The term Commercial paper" shall be
held to include only notes representing
actual commercial transactions, which,
when accepted by the association, shall
bier the names of at least two respon-
sible parties and have not exceeding four
months to rum. .'.,