The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-02-08
Prepared by Members Of
Banking Committee and
Submitted in House.
FORBID LOANS FOR
STOCK GAMBLING
Penalty for This Offensc Fine
Equivalent to Loan or I'm
prisonment-Outline OF
the Provisions OF
the Meas
ure.

ure.
WASHINGTON. February 7.-What
will be known as "the minority cur
rency bill'' was introduced to-day by
Representative John Sharp Williams. Of
Mississippi, the Democratic leader Of
the House, who drew the measure as
a result OF a conference OF Democrats
behind closed doors to-day. Those
beside Mr.. Williams who participated
In the conference were Representatives
Lewis. OF Georgia; Pujo, OF Louisiana;
Glass, OF Virginia; Gillespie. Of Texas;
Ollie James, Of Kentucky; Crawford,
OF North Carolina, and McHenry, OF
Pennsylvania, all members OF the Conf
mittee on Banking and Currency. En-
tire harmony Is said to have marked
the meeting.
1t is understood that tho bill, as
drawn by Mr.. Williams. may be sub
jected to slight amendment by its sup
porters. but it will come before the
House in the shape of minority re-
port from the Banking and Currency
Committee in its present form.
Change AS to Reserves.
Among the provisions OF the bill arc
the following: 1t repeals all le&s per-
mitting national banks to keep three
fifths OF their reserves In national
banks of reserve cities, and similar
laws permitting such deposit of one
half OF the reserve amounts.
It provides that not less than one
half OF the reserves now required to
be kept in lawful money in central
reserve cities shall be hereafter held in
gold or gold certificates. 1t does away
with the payment of national bank ex
aminers by the fee system, and substf-
tutes salaries of not less than $4,000
nor in excess of $4,000 yearly. with
actual expenses. 1t provides that the
total liabilities of any national bank.
inclusive of the liabilities of its mem
bers. shall not exceed one-tenth of TIL
banks paid in and unimpaircd capital
stock and one-tenth of its unimpaired
surplus fund. and that in no event
shall the liabilities exceed so per cent.
tof. the capita. stock.
But the discount of bills of ex-
change drawn In good faith against
actually existing values. and the dis
count Of commercial or business paper
actually owned by the person nego-
tiating 1t, shall not be considered as
liabilities. Violation of this section
is made misdemeanor. punishable by
fine or imprisonment.
Not Lend Over scvcn-Tcnths.
No national bank shall loan in the
aggregate more than seven times the
amount of its paid up capital. plu
its unimpaired surplus.
Violation is punishable as provided
in the section preceding. Any national
bank may keep so per cent. OF its re-
serve in United States bonds or In the
bonds of States OF in the bonds OF GER
tain municipalities; but not more than
one-fOurth Of the total reserve may
be kept in State or municipal bonds
and the bonds shall be acceptable only
of such municipalities as have main
tatned their bonds at or above par for
six years preceding and have been In
corporate existence ten years and have
never defaulted in their funded debt,
and whose net Indebtedness does not
exceed IS per cent. OF their taxable
property. The acceptability Of such
bonds as reserve security shall be
passed on by the attorney-general OF
the State In which the municipality
is located; and their bonds shall be
The Comptroller OF the Currency, inn
mediately after the passage OF the bill.
shall furnish copy OF the new law to
each bank in the country, and inquire
II 1t will accept the provisions.
Consent shall be binding, and the lia-
bilities attaching to consent may be
enforced by the Comptroller. Agree
ment to accept the provisions shall en-
title State banks and trust companies
to the benefits of the new law.
Elastic Currency Feature.
The elastic currency feature of the
bill is contained In section which pro-l
vides that these inter-convertible
bonds may be deposited "in the near
est sub treasury" and the depositlng
banks shall receive In lieu thereof
.'Unlted States emergency treasury
notes. These notes shall be in tha
nature OF loan, subject to a taxation
OF X of per cent. for the first tour
months of their issuance, 1a of / per
cent. for the second four months, and
/ per cent. thereafter. When the bank
feels that the emergency has passed
and the loan notes are no longer need.
ed II may redeem them with actual
money.
| Such redemption moneys shall con-
stitute a special fund for the purpose
Of redeeming United States emergency
currency notes whenever they are pre-
scented for payment. the notes to be
| then cancelled and destroyed. These
| notes shall be legal tender.
For the creation of fund of $15.-
000, 900 for the payment of depositors
OF failed banks operating under the
provisions Of this law. there Is author.
lied the imposition OF tax Of one
sixteen OF per cent. on the deposits
o. hanks so operating, and whose con-
sent to be so taxed has been OBJ
taned.
3yides that no bank officer shall make
a loan for purposes OF stock gambling,
and fixes as the penalty for violation