Omaha daily bee., 1908-01-08
These Are y Be Based on Bonds Ap.
proved by Treasury.
COMPTROLLER PREsCRBEs LIMITS
Issue Not to Exceed rs Per Cent OF
Value of Security.
GRADUATED TAX ON NOTES
Half Yearly and Monthly Asressment
ON Average Amount Outs'and-
ing BASED on Rate of Ia
terest on Bondn.


arsuon by leading republican members Of
the senate committee on finance, was to-
day printed and given to the public
The bill provides for an additional Issue
Of bank circulation whioh shall at no time
exceed S25O.O0oOO0 on bonds and other Sc
curities than those issued by the govern
ment including state and municipal bonds
In approved 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 amount TO be
awarded TO any banking institution. Ii Is
provided that the increased circulation
shall in no case exceed 20 per cent Of the
bonds deposited.
Senator Aldrich introduced the bill in the
senate soon after that body convened today.
Following are the first three sections Of
the bill:
Text of Bill.
Section l--When any national banking as
ISOLATION which has circulating notes out
standing, secured by the deposit of United
States bonds TO an amount OF not less than
80 per centum Of its capital stock and which
has a surplus Of not less than - per
centum, may make application to the comp
troller OF the currency for authority 10
issue addition circulation 60 be secured 10y
the United States, the comptroller of the
currency if In his judgment business condi-
uons demands such additional circulation.
ton making the. application warrants
the issue, shall fix the amount
posed Mp6R one such bml9qnS n55a1s 9erePssr
notes to be issued Whenever after it-
ceiving notice Of such approval any such
association shall deposit with the treas
urer or any assistant treasurer Of the
I lnited States such o. the bonds described
in section . Of this act AZ shall be APP
treasurer Of the United States and the sec
retary OF the treasury, II shall be entitled
no nf Ia
troller Of the currency, circulating notes.
IN blank registered and countersigned az
provided by law, equal IN amount TO 70
per cent OF the market value. as fixed
by the treasurer OF the United States, of
the bonds so deposited, such additional cir
culating notes To be used. held and treated
in the same way as circulating notes OF
national banking associations heretofcrs
States bonds, and siiall be subject to ali
the provisions Of law affecting such notes.
provided, that the amount Of such add-
uouA circulating notes, delivered at any
time to any association shall not in any
case exceed the limit fixed for such issue
by the comptroller Of the currency; and
provided further, that the total amount OF
circulating notes outstanding OF any ma
United States bonds OF Otherwise shan
not al any time exceed the amount OF it's
unimpaired capital and surplus, and pro-
vided further, that there shall not be out
standing at any time circulating notes
issued under the provisions of this act 10
an amount Of more than S259, 400. 900: and
/ provided further that an acts and orders
/ Of The comptroller Of the currency ana
/ the treasurer OF the United States author
1 lied by this section shall have The aD-
/ proval Of the secretary of the treasury
Security which IL Accepted.
Section THAT tthe treasurer Of the
United States. with the approval Of the
secretary Of the treasury, may accept as,
security for the additional circulation notes
provided for in the preceding section
( of any state OF the United States or any
/ legally authorized bonds issued for muni-
cipal purposes by any city or county IN the
/ United States. which has been in existence
city county for a period OF fifteen
years ID which for period of ten years
previous 10 such deposits has not detaulted
/ IN the payment Of amy part of either prin-
cipal OF interest Of any bonded debt au-
/ thorlzed TO be contracted bv H. and which
4 has al such date more than 5000 inhab-
tants as established by the last census anu
/ whose net Indebtedness docs not exceed
/ 10 per cent Of the valuation OF the tax
| able properly therein, 10 be ascertsined by
the last preceding valuation Of property
for the assessment of taxes. or the first
mortgage bonds Of any railroad company,
. not including street railway bonds which
/ has paid dividends of not less than pei
cent per snnum regularly ana continuously
7 on its entire capital stock for period Of
not less than five years previous 10 the de-
post Of the bonds. The treasurer OF the
United States. with the approval of the
4 secretary OF The treasury, may accept for
The purposes OF this act~securities herein
/ enumerated In such proportions he may
from time 10 time determine
The Comptroller may a. any time re.
or require any association TO change the
character Of the security already on de-
' Bonds HeIds in Treasury.
Section S-That all bonds. deposited 70
I secure circulation 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 deposit
ing them, with a memorandum to that ef-
. each bond and signed by the cashier or
some other officer OF the assoeiatiun max
ing the dCposiL A receipt shall BE- given tc
the association by the cuuiproller of the
| currency. or 10y clerk authorised by hin
for that purpose. stating thHt such bond is
held IN trust for the association on whose
behalf the transfer is made, and as security
for the redemption and payment of any cir
/ culatfug notes that have been or may be
| delivered 10 such association No assign
/ ment or transfer OF any such bond by The
treasurer shall be deemed valid unless
currency, and the provisions Of sections
IG2 5lG4 5f5 5l66 ana 5l6l of the revised
statutes respecting nieo Htstes bonds de-
posted 10 secure circulating notes shan
except as herein modified, be applicable
TO all bonds under the terms 81 THIS act.
The remaining portions Of the bill consist
Of additions 20 tbe existing law. These
additions provide for O tax on the average
amount Of such notes Of q banks circu-
lation as are based upon bonds other than
United States bonds provision being made
for a tax on notes secured by Panama
canal bonds amounting to y OF ! per cent
each half year on notes secured by per
cent bonds. Associations having on deposit
bonds bearing interest al a higher rate
than 2 per centum per Hunum are required
20 pay q tax OF y per cent each half year
on notes thus secured
Tax an Notes.
A monthly TAX Of y OF ] per cent rs irI-
posed upon the average amount Of notes
ips,ad On hands other than Igrds rf tnr
United States and monthly returns under
oath. are required Of an association a.
snow the average monthly amount of notes
80 secured IN circulation.
EKsmpting United States bonds called for
redamDuou by me secretary or the treas
ury. A IL permitted ~ the his that -