The Washington herald., 1908-02-29
FOWLER BILL READY
Committee Ends Work on
New Currency Measure.
MAJORITY FAvORs ADOPTION
Proposed Ranking Act Approved by
House Committee by Vote of II to
6-Win Mean Radical Change In
Present Money system of Country.
some Members VIII object.

A radical change of the present money
system Of the United States is proposed in
the Fowler currency bill, which was or
dered reported yesterday by the Commit
tee on Banking and Currency
The vote of the committee in ordering
the bill reported was II TO 9. Some of the
members who supported it in committee
reserved the right to oppose il in whole
or In part on the floor Of the House.
Chairman Fowler. of the committee.
the author OF the bill. will have charge of
the measure when it comes up for con-
sider2tion. The report on the bill is
elaborate. II is anaIyzed as follows.
Under the hill the United States is divided into
twenty commercial zones. with a note redemption
agency in each zone All the banks redeeniine their
notes az any one agency elect a board Of managers
for their commercial zone consisting Of nine mem
beTs VINO have entire charge OF the examination and
supervision oi the hanks il. that commercial zone
The chairman Of each bosrd Of managers is
deiuty comptroller OF the currency. These boards
OF managers meet 40 least once every month.
Tire deputy cDmptrOilers Of the twenty commercial
zones mcet AZ ioas. every six months with the
Comptroller Of The Currency acting as chairman tor
the p'trpose Of consulting and advising oach other.
IL VII be chserved that the structure Of this
sanizatioa Is based upon that Of ow State and Fed
eral government
What Banks May DO.
National banks authorized:
f1rst-TO take ont bank notes fer issue and circu
lation without depositing government bonds
secord-To guaranty dcpositors.
Thipd-To act as executor. administrator guardian
and trustee.
Fourth-To examine ard supervise their banks
through their own examiners
In place Of the present outstanding government
bonds secured note the banks will have the right to
take out FOR issue and circulation bank notes equal
70 the capital of the bank the same being pro-
t-cted hy gold reserves. IN amount as now provided
by Law for deposits and their payment VIII be guar
anteod by deposit in the United States Treasury
a fund appgoNimating 500, ,Oo00o1.
II az any time the business interests Of the coun-
Try should require il in any locality subject 20 the
approval Of the board Of managers Of the respective
districts, any bank may take out additional
amount Of notes equal 20 its capital
At the time Of taking ont bank notes for issue and
circulation banks shall deposit in the Treasury OF
the United States an amount Of gold coin. or its
equivalent equal 70 per cent Of its average de
Iosts for the preceding six months. and also per
cent 0f the hank notes it takes out
10 Is assumed that the total deposits will be az
least Sl3"0 10000. snd that the total note viii
be az least 81 900 600 900, making in all S4 10000 0o0
per cent Of which is SOOo00.o00.
Bonds to BE Returned.
As soon as the amount in the guaranty fund, aris
ing from the deposits therein Of per cent of the
note issues and pcr cent OF the deposits shan
reach the sum Of S25eO0OOO. all bonds now held by
the government 10 secure its deposits with national
banks. shall be returned 10 the respective banks own
ing them, and the banks shah thereupon begin to
pay % the government its deposits interest there
on at the rate Of per cent per annum the same BE-
Ing payable enli-annually.
All government deposits shall he equitabIy dis
tributed throughout the United States. and no de
post with any national bank shall exceed % per cent
Uf its capital
The government shah receive in rayment for its
Gne. national hank notes or the checks and drafts
Of solvent national banks and shall uay all its own
obligations by checks draft on national banks Il
soah deposit from day 20 day all OF its receipts in
national banks precisely any business house does
All expense attaching to the transmission Of any
bank note by the holder thereof 10 a redemption
agency Is paid by the government No bank is al
lowed % fay more than 2 per cent on any account
subject 70 check The rates OF interest 20 be a.
certificates shall be determined by the managers Of
the respective districts
To he Converted.
As soon the amount Of the acclmulations in
the guaranty fund from income reaches the sum Of
SOoo0Oo the balance remaining on the first DAYS OF
January and July Of each year. after paying all ex-
penses. shall be used 20 convert the United States
notes into gold certificates. The result viii be that
the demand debt Of the government. amounting 10
soOooooo win be paid out Of TIE taxes upon circu-
lation and interest upon government deposits held
by the banks.
II IS the confident belief Of the committee that by
the enactment Of this measure all the fundamental
weakness OF defects ia our financial and currency
practice viii be eliminated and that we shall have
all things considered. the very best banking system
IN the world, instead Of the very worst To delay
this important work any longer means still greater
and continued commercial disaster. and in case Of
a great war complete breakdown Of our national
credit and all the uIinogs consequences that follow
in ifa