The Montgomery advertiser., 1908-01-09
FRAMES BILL FOR CURRENCY Committee Agrees on a
 Plan. APPROVED BY MR FOWLER Retires All Outstanding Bank
 Bonds. Details of the Scheme Worked oss For FiaaneiaI sy.scn--rs
 Iasroasee The Bm
APPROVED BY MR FOWLER

Washington. Jan. s.--The sub-coni- mittee of the House Committee on Banking and Currency. to which was entrusted the framing of bill to in- crease the elasticity of the currency. reached conclusion today and win re. port favorabiy to the full committee d Diii drawn in the main by Chairmaa Fowler of the Committee.
 The Dill will be introduced by Mir. FowIer and referred to his committes, where 1t will form the working baxis for the flaming of a bill of. if possihie the same tenor and scope.
 The Dill provides for the complete re- tlrement Of all present outstanding na~ tional bank bonds, secured currency. and authorizes in lieu thereof cur rency based upon general assets of the banks to be worked out in this way:
 The Comptroller of the Currency will designate throughout the country. certain redemption cities so that there shall be redemption city within af least twenty-four hours reach of each national bank. The national banks will indicate to the Comptroller Of tic Currency to what redemption city they wish to be joined. The ComptroiIer will them select time and place with In each redemption district for the or ganizing of that district In the follow ing manner:
 I Each national bank in that district, regardless of It's capital stock, will ba entitled to one vote. Representatives. Of the banks. will meet nt time and place designated and elect Board of Managers to consist of seven members and the seven will elect a chairman who will became Deputy Comptrollaf of currency and assume control of his re- demption district except that he shail not have charge of the enforcement of tfss arftN al asta tn.ea
 Notes t0 be Taxed.
 Each national bank is authorized 10 present to the Secretary of the Treas ury. national bank notes and lawful moneys in lieu of other national bank bonds and secured outstanding notes. Then if the hanks application therefor is endorsed by the Board of Managers of the redemption district tu which it Belongs. the hank will receive guarAnS teed credit notes Co tho amount of it's capital stock These notes are sub ject to tax of two per cent per an- mum. hMt M
 Each bank @wili be required to de- posit as q guarantee fund with the United States Treasurer per cent of It's average deposits for the preceding twelve months and Ave per cent of the credit notes which 1t takes out The revenue thus iobtained is to create and support a national guaranty fund of taUOsUuUsUUN IuE lD9 BuAfAnty It bVAtA the deposits and the outstanding bank notes of every national bank. Eighty per cent of thls fund is to be invested in United States bonds drawing two per cent interest. while tho remaining twenty per cent is to be deposited m banks of the various redemption cities for the purpose of redeenntng the sruaranteed credit notes of the banks in the various redemption districts
 When the national guaranty fpnn reaches S25 100000, which would De al- most simultaneous with the birth ok the new law the government ss re- quired to return to the banks the unit- ed States bonds which the govefnment now holds as security for federal de- posits. the object being to enable the banks to get control of the bonds so that the government can invest eighty per cent of the guaranty fund In per cent bonds and regain control
 In buying these bonds the banks holding them shall be paid their oriE- inal purchase price, provided the bonds were bought before Jan. 1, 1908, and provided their exact. purchase prscs can be proved.
 Representative Fowler, chairman oK the committee on banking and curren- CIV. made the following statement re- Earding the financial situation:
 eve are today, with regard to our financial and currency practices ex- actly where we were in 1898, with re- gard to our standard of values; and to decide now ssto make all kinds of bonds the basly of currency would ba just as serious and fatal mistake as to have adopted silver then as our standard of value.
 "The time Is opportune. the cireuin stances suspicious, and careful inves- tigation of all the facts and eondl- tions justified the conclusion that Con- gress can and should so legisiate as to bring about these results;
 "i. A uniform banking system.
 "2 A uniform bank reserve, con- sisting of gold coin or It's equivalent.
 "3 A simple and scientific monetary system consisting of only three forms of currency--gold for our bank re- serves, bank credit notes redeemable in gold for the larger bills, and silver for inc smaller bills and subsidiary coins.
 "4 A currency automatically ad- justing itself to the demands of trade never too great, never too small, but always just adequate to the require ments.
 "s. Equal and absolute protection to all depositors In national banks by placing in the United States treasury a guaranty fund which by January 1909. ought to approximate $50O.0oo. 900.
 "s. The establishment of certafa rules and regulations whereby the h. nancIal operations of the treasury shall be so conducted that the govern nent will cease to be disturbing fac- tor in our, trade and commerce"