Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1908-03-09
P0WL7R'S BANKING BILL.

While Congress is talking to the
galleries in preparation for the polit-
ical campaign next fall, there APP
pears to be general consent that def
mite action must be taken to straight
en- out the banking laws, which were
found so pitiably weak during the re-
cent banking panic.
The two principal measures before
Congress are the Aldrich bin of the
Senate. which makes no drastic
change from the present national
banking system but provides for an
emergency currency based on the
usual banking assets, and the Fowler |
bill, which is the House measure for |
colving the financial problems of the |
hour. This is very radical depart |
ure irons the present arrangement |
and therefore is credited with having |
small prospect of being adopted, |
though the final bill may be COM
bination of both.
Chairman Fowlers plan as eX-
pressed in his bill reported favorably
by the House Committee on Finance.
IL Ito establish n simple and scien-
tifc monetary system founded upon
gold"
The bill provides first that within
twenty-four hours after the passage
OF the act the Comptroller of Cur
rency shall designate central cities in
the country as will practically bring
every banking association of the
United States within twenty-fours OF
bank-note redemption agency. The
district with the 24-hour radius is
known as a redemption district.
All banking associations OF a re-
demption district shall organize into
an association to be known as THE
Nnsert number) Bank-Note Redemp-
ton District" This association has
u board of managers of seven men,
bers; the chairman elected by the
Board Is to act as and have the au
thority Of a Deputy Comptroller OF
Currency, and receive a salary OF
$4,000. a year.
When the organization of the re
demption districts" is complete any
national bank may retire its cur
rency secured by United States bonds,
and issue in its place national bank
guaranteed credit notes" equal to its
paid-up capital. The bank must pro-
vide for the redemption of these
notes in gold coin and deposit in
gold coin or its equivalent with the
Treasurer OF the United States an
amount OF money equal to five per
cent. OF its average deposits during
the preceding year. and a further
deposit OF five per cent. OF the
amount of the national bank guar
anteed credit notes" issued.
AS soon as all the moneys deposit
ed by the national banks with the
Treasurer of the United States shall
amount to s25,000,O00. all United
States bonds now held by the Treas
urer to secure Government deposits
shall be returned to the respective
banks and after this return any bank
carrying Government money on de-
post shall pay interest thereon at
the rate of two per cent. per annum,
one per cent. being levied on the av-
erage balance during six months,
and one per cent. on the amount of
national bank guaranteed credit
notes" issued.
The United States Treasurer is to
hold the money realized from the per-
centage on deposits, currency, etc, as
fund to guarantee 1.-THE payment of
all individual deposits, all bank
notes, all bank deposits, and all Gov
eminent deposits -" and to pay
all expenses incurred in the way of
properly conducting 'and maintain
ing the several bank-note redemption
agencies.
Eighty per cent. of the guaranty
fund is to be invested in two per
cent. United States bonds. At least
one-fifth of the guarantee fund must
be kept in cash and deposited at the
various redemption agencies to facil-
itate redemption.
Every national banking associa-
tion in central or reserve city must
have on hand, at all times. cash to
the amount of twenty-five per cent.
of It's national bank guaranteed
credit notes in circulation, and all
banks must have cash on hand to at
least fifteen per cent. of the amount
of It's credit notes in circulation.
Whenever any bank failure occurs
after January /. 1903, one-tenth Of