The Cairo bulletin., 1908-02-29
SIX AMENDMENTS
| IN FOWtER Bill:
HOUSE COMMITTEE ORDERED
BANKING MEASURE FAVOR
ABLY REPORTED.
RECOMMENDS PASSAGE
Though Each. Member Reserves Right
ito Oppose or offer Amend
ments On Floor When
Bill Comes Up.

| Washington. Feb. 2S.By a vote Of
II to 5, three members being present
and not voting, the house committee
on banking and currency today au-
i thorized Chairman Fowierssto report
to the house the Fowler currency bill
with the recommendation that II pass.
Though the decision to report the BILL
! favorably was reached as a result of
weeks of hearings and exhaustive dis
crssion of its various provisions In
executive session, the decision does
ont commit the banking and cnr-
rency committee to its support on the
floor Of the house, the members re-
serving the Individual right TO oppose
any section of IL and to offer and
urge any amendment when the bin III
called up.
The committee amended the bin in
six Of its salient features. The clause
permitting national banks to do trust
savings bank business was amended
by striking out the savings bank see,
tion The clause making all of the
national banks within each of the pro
ncsed reserve districts specifically
liable for ten per cent OF cheek aal
note liabilities of failed national banks
within that district was revised To
read 25 per cent
The bill as originally framed. at
lowed each national bank to take cut
national credit notes to the extent OF
loo per cent of its capital with the
approval OF the comptroller of the
currency and an unlimited additional
amount with the approval of che
board Of managers Of the reserve dis
trict TO which the bank belonged. THIS
provision was revised so that tho t1s
tai amount OF credit notes issuahleN
to any bxnk Ehail not exceed two hun
dred per cent Oh les capital stock.
The bin originally provided the de-
posit of guaranty fund to be created
by tax Of two per cent on credit
notes issned, eighty per cent should
be invested In United States two per
cent bonds and tweny per cent should
be- held In reserve. This gold fund.
The bill as revised stipulates the In
vestment Of the entire fund in United
states twos and fixes their fiat pur-
chase price at 1914 which was the
average price for February last
The revised bill, In order to carry
put the bond currency retirement
clause. provides that after the grar
,nty fund has reached $4,000. 900 the
secretary of the treasury shall issue
gold certificates In amounts CORE.
iponding with the annual two per
cent payments on the total OF out
credit notes issued, these
gold certificates to take the place Of
IN equal amount OF outstanding green
backs. As estimated an annual tax
~ credit notes would be $4,000 900
About fourteen years would be re.
lulred for the total retirement OF the
present bond secured err
'ency after the guaranty fund had
cached s25.s0O. 900.
One OF the most interesting pro-
'islons OF the bill as revised In the
requires that the govern
nent collect It's claims and pay its
'urrene expenses through the banks
That is. the government would con-
inue to mold in treasury the green
,ack redemption fund. amounting to
'l50.0O0.000 and gold certificate re-
fund, amountinug to $500
100 600. but its general fund for the
onduct of the government would be
iept on deposit In the various na-
ional banks. subject TO check; and
instead of paying out general moneys
y voucher and treasury checks. pay
nents would be by bank checks.