Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1908-01-10
PROPOSED NEW CURRENCY LAW
Designed to Aid National Banks In
Time of Stress.

Senator Aldrich on Tuesday intro
duced in the senate the currency bill,
which has been under consideration by
Republican. members Of the senate
committee on finance. At his request
the bill was read at length in the sem
ate.
Following are the first three sections
Of the bill:
That any national banking associa-
tiUn which has circulating notes out
standing, secured by the deposit or
United States bonds, to any amount or
not less than 80 per centum Of its cap
ital stock, and which has a surplus OF
not less than twenty per centum, may
make application to the comptroller OF
the currency for authority to issue ad-
ditional circulating notes to be secur-
ed by the deposit OF bonds other than
bonds Of the United States. The comp
troller of the currency, If in his judg-
ment these conditions demand such
additional circulation and the condition
Of the association making the applica-
ton warrants the issue, may approve
such application, and shall determine
the time of issue and shall fix the
amount of such additional circulating
notes to be issued. Whenever after re-
ceiving notice of such approval any
such association shall deposit with the
treasurer or assistant treasurer OF the
United States such Of the bonds de-
scribed in section Of this act as shall
be approved In character and amount
by the treasurer of the United States
and the secretary Of the treasury, 1t
shall be entitled to receive, upon the
~ fIn tf-fnT
cy, circulating notes in blank,
equal in amount to rs per centum OF
the market value as fixed by the treas
urer Of the United States, Of the bonds
so deposited, such additional circulat-
ing notes to be used, held and treated
in the same way as circulating notes
Of national banking associations here
tofore issued and secured by deposit
Of United States bonds, and shall be
subject to all the provisions Of Jaw af-
fecting such notes:
Provided that the amount Of such
additional notes delivered at any time
to any association shall not In any
case exceed the limit fixed for such Is
sue by the comptroller Of the currency.
That the total amount Of circulating
notes outstanding Of any national bank
ing association, secured by united
States bonds or otherwise, shall not at
any time exceed the amount OF Its un-
impaired capital and. surplus; and
That there shall not be outstanding
at any time circulating notes Issued un-
der the provisions of this act to an
amount Of more than $250,000,000; and
That all acts and orders OF the
comptroller Of the currency and the
treasurer Of the United States author
lied by this section shall have the ap-
proval of the secretary Of the treasury
Section 9 Plat the treasurer of
the United States, with the approval OF
the secretary Of the treasury, may ac-
cept as security for the additional cir
culating notes provided for in the pre-
ceding section, bonds or other interest
bearing obligations Of any state or 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 deposit has not
defaulted in the payment OF any part
Of either principal or interest or any
funded debt authorized to be contract
ed by 1t, and which has at such date
more than 10000 inhabitants, as estab-
NJ
net indebtedness does not exceed lO
per centum Of the valuation Of the tax
able property therein, to be ascertain
ed by the last preceding valuation OF
property for the assessment OF taxes;
or the first mortgage bonds OF any rail-
road company, not including street
railway bonds, which has paid divi-
dends Of not less than per centum
Der annum regularly and continuously
on it's entire capital stock for period
of not less than five years previous to
the deposit Of the bonds. The treas
urer of the United States, with the ap-
proyal Of the secretary of the treasury
may at any time require the deposit OF
additional securities or require any as
sociation 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 treasurer OF
the United States in trust for the as
sociation depositing them"
The remaining portions Of the bill
consist Of additions to the existing law
providing for a tax on the average
amount Of such notes Of a banks cir
culation as are based upon the deposit
of bonds other than bonds OF the
United States.
Exempting United States bonds call
ed for redemption by the secretary OF
the treasury, 1t Is permitted by the bill
that national banking associations may
withdraw their bonds held for circula-
ton security by the deposit Of lawful
money to a proportionate amount.
The bill also requires:
THAT national banking associations
located outside Of reserve or central
reserve cities, which are now required
by law to keep a reserve equal TO M
teen per centum Of their deposit liabil-
tiles. shall hereafter hold at all times
at least two thirds Of such reserve In
lawful money"
"I have asked that the bill be read
said Mr.. Aldrich, 'in order that the
senate may at once be informed OF Its
provisions. I have been authorized by
the committee Of finance to say that,
that committee will receive and give
careful consideration to bills sent to 1t
having the same purposes In view that
are sought in the bill that has been
read"
Mr.. Culberson asked for information
about his resolution which had been
sent to the committee on finance d.
recting that committee to inquire into
the causes Of the recent financial strin-
gency.
"The committee has not had time to
take up that matter" replied Mr.. Aid
rich, adding that the committee had not
vet received the information called
from the treasury department by the
resolutions.
II should be glad to take up that res
olution If the senate so desires at the
meeting Of the committee next Tues
day." said Mr. Aldrich.
1t is understood that all Republican
members Of the committee are in favor
Of the measure except Senator Hans
brough, who believes that central
bank will best solve the difficulties Of
the country's currency situation. He
has introduced a bill providing for
central bank at Chicago.
Republican leaders in the senate are
extremely hopeful Of the early passage
Of the Aldrich bill.
1t Is expected that there will be
Democratic criticism of the bill and
Republicans declare that they are ready
TO accept any reasonable amendment
in order to make the bill as nearly nom
partisan as possible.
The bill will not be considered by
the committee on finance until next
Tuesday, Senator Aldrich purposely al
lowing a week to elapSe between the