The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1908-01-07

BILL IN HANDS
OF SENATE
Provides Additional Issue
of Bank CircuIatiOn-.Al
rich Its Sponsor.

WASHINGTON, Jan. THE financial
bill, which has for some time been in
preparation by the leading Republican
members of the Senate committee on
finance. was today printed and given to
the public.
The bill provides for an additional issue
of bank circulation, which shall at no
exceed $3.50, 900, coo, upon bond other
than those issued by the government, in
Guiding state and municipal bonds in p
proved cases.
The Comptroller of the Currency is given
discretion in the issuance Of the proposed
currency, and is authorized to decide as
to the time and the amount to be awarded
to any banking institution. 1t is provided
that the increased circulation snail in no
case exceed 70 per cent. of the value of
the bonds deposited.
Senator Aldrich introduced the bill In the
Senate soon after the body convened to-
day.
Folio wing are the first three sections of
the bill: z
That any national banking association
which has circulating notes outstanding,
secured by the deposit OF United Staees
bonds to an amount of not less than %
per centum of LIS capital stock, ana %nlcn
mas a surplus not less than ~ per centum,
may make application to the Comptrollef
of The Currency tor authority TO Issue ad-
ditional circulating notes, to be secured by
the deposit Oh bonds other than bonds Oh
the Ullled States
THE Comptroller of the Currency, if, in
his judgment, business conditions demand
sucE additional circulation and the condi-
ton of the association making the appli-
cation warrants the issue, may approve
such application and shall determine the
time OF issae and shall fix the amount,
within the limitations hereinafter imposed,
of such additional circulating notes TO pc
issued. Whenever, after receiving notice
Of such approval, any such association
shall deposit with the treasurer or any as
sistant treasurer of the United states such
Of the bonds described in section 2 of
this act as shall be approved in character
United States and the Secretary of the
Treasury, it shall be entitled TO receive,
upon the order of the Comptroller of the
Currency, circulating. notesI in blank, reg
istered and countersigned ms provided BY
Jaw, equal in amount to IS per centI1m OF
the market value. rs fixed by the Treas
urer of the United States. of the bonds so
deposited, such additional clrcula ting notes
to be used, held and treated in the same
way as circulating notes of nauona bank
ing associations heretofore issued and Sc
cured by a deposit Of United States bonds,
and shall be subject to all the provisions
of law affecting such notes: Provided, that
notes delivered at any time to any asso-
citation shall not in any case exceed the
limit fixed Tor such Issue by the Comptrol-
Ter OF the Currency.
"And provided further, That the total
amount of circulating notes outstanding OF
any national banking association. secured
by United states bonds, or otherwise. shal
not at any time exceed the amount OF Its
unimpalred capital and surplus.
And provided further. That there, shall
not be outstanding at any time circulating
notes issued under the provisions of this
act to an amount of more than Two nun
dred aud fifty million dollars.
And provided further, That all acts
and orders of tho comptroller OF the cur,
rency and the treasurer of the United
States. authorized by this section, shall
have the approval of the Secretary of the
Section 2. That the Treasurer of the
United States. with the approval OF the
Secretary of the Treasury, may accept as
security for the additional circulating
notes provided for in the preceding sec
tion bonds or other interest-bcafing ohil-
gations Of any state of the United states
municipal purposes by any city or conniy
In the United States which has been IN
existence as q city or county for a period
Of fifteen years. and which foT a period
of ten years previous tn such denosit has
rot defaulted in the payment of any part
of either principal or interest OF any
by 1t and which has 1T such date more
than twenty thousand inhabitants az es-
tablished by the last census aud whose
net indebtedness does pot exceed 10 per
ccntum of the Valuation of the taxanie
property therein. to be ascertaiiled by the
last preceding valuation of property for
gage bonds of any railroad company not
Including streets railway bonds which has
paid dividends of not less than 4 per
fentum per annum regularly and col
tinuously On its entire capital stock for n
period Of not loss than five years Previous
to the deposit OF the bonds. The Treas
urer of the United States with the ep-
IIGval of the Secretary of the Treasury,
may accept. for the purposes of this act.
securities herein enumerated N s9ch pro
l,m lions as he may from time to tine 10
tcfmine, ard he may at any time req Ire
the deposit Of additional securities or re-
uuire any association to change the ,n-r-
atter of the seHuY ty ALREADY on deposit.
Section 3. Tha all bonds deposited to
secure circulating notes issued in accord
ance with the terms of this act shall be
transferred to the Treasurer of the United
States in trust for the association de-
posting them. with a memorandum TO
that effect, attached to or written on each
other officer Of the associa ton making the
deposits. A receipt shall be given to the
association by the Comptroller Of the Cur
rency. or by a clerk authorized by him
for that purpose. stating that such bond
is held for the association ON whose behalf
the transfer Is made. and as security for
the redemption and paymen OF any clrcu-
lating notes that have been or may he de-
livered to such association. No assignment
urer shall be deemed valid unless counter
signed by the Comptroller of the Currency.
The provisions of sections 1853, 5,164, b.165,
5,166 and 5,167 of the revised statutes re-
speeding United States bonds deposited to
secure circulating notes shall, except as
herein modified, be applicable to all bonds
deposited under the terms of this act"