New-York tribune., 1908-02-08
NEW CURRENCY BILL
Williams Introduces Measure En-
bOdyng Fie7cs of Democrats.

Washington, Feb. What Will be known IS
the minority currency bilI' introduced to-day
by Representative Williams. of Mississippi. the
Democratic leader of the House, who drew the
measure result of conference of Democrats
behind closed doors to-day. Those besides Mr.. Will
Jams who took part in the conference were Repre-
sentatives Lewis OF Georgia; Puio, of Louisiana :;
Glass, of Virginia. Gillespie, OF Texas Ollie James
of Kentucky; Crawford, of North Carolina, and
McHenry of Pennsylvania, all members of the Com
rnittee Banking and Currency. Harmony is said
to have marked the proceedings 1t is understood
that the bill drawn by Mr.. Williams may be
subjected TO slight amendment by its supporters
but It will before the House minority
report from the Banking and Currency Committee
Among the provisions of the bill the follow
ing:
1t repeals all laws permitting national banks to
serve cities. and similar laws permitting such de-
posit OF one-half of the reserve
1t provides that not less than one-half Of the
serve now required to be kept in lawful money in
central reserve cities shall hereafter be held in
gold or gold certificates.
1t does away with the payment of national bank
aries of not less than $500 nor in excess of 5000,
1t provides that the total liabilities of any national
bank shall not exceed one-tenth OF the banks paid
its uninpaired surplus fund and that in no event
shall the liabilities exceed 80 per cent of the capital
in good faith against actually existing values, and
the discount of commercial or business paper actu-
be considered as liabilities Violations OF this
section made nllSdemeanor, punishable by flile
Imprisonment
No national bank shall lend in the aggregate more
than seven times the amount OF its paid-up capital
plus its unimpaired. surplus Violation is punish
able provided in the section preceding
Any national bank may keep 90 per cent OF its
reserve in United States bonds in the bonds Of
states or in the bonds of certain municipalities;
but not more than one-fourth of the total reserve
may be kept in state or municipal bonds; ana the
inequalities as have maintained their bonds az
above par for six years preceding, and have been
in corporate existence ten years ana nave never
defaulted in their funded debt. and whose net IN
able property. The acceptability OF suCn bonds as
security shall be PdSs9d @ t On by J
located. and these bonds shall be known as inter
convertible bonds
the passage of the bill. shall furnish a copy of the
new law to each bank in the cou4sTy; t ana @ 9ue he
binding and the liabilities attaching 10 consent may
be enforced by the ControIler Agrseiet TO dtCgpt t
companies to the benefits of the new law
IN q section which provides that these fntsrcon-
vartible bonds may he deposited IN the nearest
sTh trna snry- and the depOsiting hank shall
treasury notes These notes shall he in the nature
of @sn @ tba sup rt four months Of their issuance
enc half of per cent for the second four months
ond = ner cent thereafter. When the hank feels
are no longer needed 1t may redeem them, VIII VIII
actual money Sch reaeLp0l % ra Iarae ~ Tedaeming
limited States emergency currency notes Wnehe'tI
they are presented for payment the nQIes h mi W -
he cancelled and destroyed These notes shaH ne
ief1 f fb creation OF fund of s5OoOo for the
oart To- of depositors of failed banks operating
Jnder the provisions Of this bill tax OF 9ne-si,X-
teentb of per cent is authorized on tne oepoS.ls
OF banks so operating and whose consent w ."
taxed has been obtained -. - - .sz-a-
The final section provides that no nank o1lGrr e
efaII make a loan for the purposes OF stoch sal
iin am fxes as the penalty for violation f1ne 70
the amount of the loan. or Imprisonment