Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-01-08
CURRENCY
BILL CHANGES
BANK LA WIS
SENATOR ALDRIcH PROPOSES
NEW MEASURE
PROVIDES MORE ELASTICITY IN
MONEY
Republican Members Of Finance Con'-
mlttee Finish Work-Allows More
Latitude In Issuance of
Securities

rich today introduced in the senate the
currency bill. which for some time past
has been under consideration by Ike
publican members of the senate com
mtttee on finance. At his request the
bill was read in the senate and careIul
attention was given to the reading
Republican leaders In the senate as
whole arc hopeful of the early passage
of the Aldrich bill. They declare that
while they are anxious that 1t fshoul1
not be partisan mea sure, yet II Dem
ocratic opposition should be developed
to the Republican plan for such legls-
latton they will proceed TO put the Dill
through the senate is party measure.
senator Aldrich has been in confer
ence with so many of the senate lead
ers that his bill has not come to them
as a surprise. The bill will not os
considered by the committee on finance
until next Tuesday, Senator Aldrlch
purposely allowing a week to elapse
between the introduction of the Dill
and its consideration in order TO give
ample time for its consideration. He
said IL was his purpose when the bill
was reported to make statement In
explanation of the measure and as 10
what 1t would accomplish.
Provisions of Bill
Following are the tirst three sections
of the bill:
THAT any national banking assocla-
ton which has circulating notes OUT
standing, secured by the deposit OF
United States bonds to an amount of
not less than so per cent of its capital
stock and which has a surplus OF not
less than 20 per centum may make APP
pltcation to the comptroller OF the cur
rency for authority to issue addl-
tional circulation to be secured by the
deposits of bonds other than those n
the United States.
The comptroller of the currency, II
in his judgment business conditions
demands such additional circulation
and the condition of the association
making the application warrants the
issue shall fix the amount within
tie limitations hereinafter imposed, OF
such additional circulating notes to be
issued whenever after receiving notice
of such approval any such association
shall deposit with the treasurer or any
assistant treasurer of the United states
such of the bonds described in section
two of this act, as shall be approved
in character and amount by the treas
urer of the United States and the Sec
rotary of the treasury, it shall be en-
titled to receive, upon the order OF the
comptroller of the currency, circulating
notes In blank, registered and counter
signed as provided by law, equal
amount to rs per cent of the market
value as fixed by the treasurer or the
United States of these bonds SO de-
posted, such additional circulating
notes to be used, held and treated in
the same way as circulating notes of
national banking associations hereto
fore issued and secured by a deposit of
United States bonds, and shall be sub
iect to all the provisions of law Affecting
such notes; provided, that the amount OF
such additional circulating notes, deliv-
cred at any time to any association shall
not in any case exceed the limit fixed for
such issue Ly the comptroller of the cur
rency; and, provided further, that the
total amount of circulating notes out
standing of any national banking assoc
citation secured by the United States
bonds, or otherwise, shall not at any time
exceed the amount of its unimpaired cap
ital and surplus; and, provided further,
that there shall not be outstanding at any
time circulating notes Issued undoT the
provisions of this act TO an amount of
more than S250000 900; and, provided fur
Their. that all acts and orders of the comp
trolIer OF the currency and the treasurer
of the United States authorized by this
section shall have the approval of the
secretary of the treasury.
Section 2. That the treasurer of the
United States, with the approval of the
secretary of the treasury, may accept as
security for the additional circulating
notes provided for in the preceding sec
ton, bonds or other interest bearing OBJ
legations Of any state of the United
States, or any legally authorized bonds
issued for municipal purposes by any city
or county In the United States, which has
been In existence as a city or county for
period of fifteen years, and which
for a period OF ten years previous
to such deposits has not defaulted
in the payment of any part of
either principal or interest of any
funded debt authorized to be con-
tracted by it and which has at such
date more than 10000 inhabitants as
established by the last census and
whose net indebtedness does not ex-
coed 10 pereentum of the valuation OF
the taxable property therein. to be as
certained by the last preceding valua-
ton OF property for the assessment of
taxes; or the first mortgage bonds OF
any railroad company, not including
street railway bonds which has paid
dividend OF not less than percentum
per annum regularly and continuously
on its entire capital stocks for period
of not less than five years previous to
the deposit of the bonds.
o NCCCPt OcCuTitlSS
1.-THE treasurer of the United States,
with the approval of the secretary of
the treasury. may accept for the pur-
pose of this act securities herein enum-
Grated OF such proportions as he may
from time to time determine and he
may at any time require the deposit OF
additional securities or require any as
! ISOLATION to change the character OF
the security already on deposit.
Section g. That all bonds deposited
to secure circulating notes issued In
accordance with the terms of this act
shall be transferred TO the treasury OF
the United States in trust for the as
ISOLATION depositipg them with mem
orandum to that Neffect attached to OF
written or printed on each bond ans
signed by the cashier or some Other
officer of the association making tbs
deposit.
"A rescrip shall be given TO the asso'
citation by the comptroller OF the cur
rency or by a clerk authorized by hin
for that purpose stating that sucf
bond is held IN trust for the associa
ton on whose behalf the transfer il
made and as security for the redemp
ton and Payment of any circulatins
notes that have been or may be deliv'
cred to such association.
mo assignment or transfer OF am
such bond by the treasurer shall b.
deemed valid unless countersigned b.