Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1908-02-11
MINORITY CURRENCY BILL.
How the Democrats Would Regulate the
Conduct of the Banks.


Conduct of the Banks.
What will be known as "the minor
ity currency bill' was introduced Fri
day by Representative John Sharp
Williams Of Mississippi, the Democrat
ic leader of the house, who drew the
measure as q result Of conference or
Democrats behind closed doors today.
Those beside Mr.. Williams who par
resentatives Lewis of Georgia, Pujo OF
Louisiana, Glass Of Virginia, Gillespie
of Texas, Ollie James of Kentucky,
Crawford Of North Carolina, McHenry
Of Pennsylvania-all members OF the
committee on banking and currency.
Entire harmony Is said to have mark
ed the meeting.
It is understood that the bill as
drawn by Mr.. Williams may be sub
jected to slight amendment by its sup
porters, but 1t will come before the
house in the shape of minority re-
port from the banking and currency
committee in its present form.
Among the provisions Of the bill are
the following:
It repeals all the laws permitting
national banks to keep their reserves
in national banks of reserve cities and
similar laws permitting such deposit
Of one-half of the reserve amounts.
1t provides that not less than one
half Of the reserves now required to be
kept in lawful money In central re-
serve cities shall be hereafter held In
gold or gold certificates.
It does away with the payment OF
national bank examiners by the fee
system and substitutes salaries 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 it's members, shall not ex-
ceed one tenth of the banks paid In and
unimpaired capital stock and one-tenth
of its unimpaired surplus fund; and
that in no event shall the liabilities ex-
ceed 80 per cent of the capital stock.
But the discount Of bills Of exchange
drawn in good faith against actually
existing values and the discount or
commercial or business paper actually
owned by the person negotiating It,
shall not be considered as liabilities.
Violation Of this section Is made
misdemeanor punishable by fine or I'M
prisonment.
No national bank shall loan In the
aggregate more than seven times the
amount Of its paid up capital, plus It's
unimpaired surplus. Violation Is pun
ishable as provided in the section pre-
ceding.
ANY national bank may keep so per
cent of it's reserve In United states
bonds or In the bonds Of states, or In
the bonds Of certain municipalities; put
not more than one-fourth Of the total
reserve may be kept In state or munich
pal bonds: and the bonds shall be ac-
ceptable only of such municipalities as
have maintained their bonds at or
above par for six years preceding, and
have been in corporate existence !O
years. and have never defaulted In
their funded debt, and whose net IN.
debtedness does not exceed 1S per cent
of their taxable property. The accept
ability Of such bonds as reserve secur-
tiles shall be passed on by the attorney
general Of the state in which the muni-
cipality Is located, and these bonds
shall be known as "interconvertiDle
bonds"
The comptroller Of the currency Inn
mediately upon the passage or the Dill
shall furnish a copy OF the new law 10
each bank in the country and inquire
If it will accept the provisions. Con-
sent shall be binding and the Liabilities
attaching to consent may be enforced
by the comptroller. Agreement to ac-
cept the provisions shall entitle state
banks and trust companies to the ben
efits of the new law.
The elastic currency feature OF the
bill Is contained in section which
provides that these interconvertible
bonds may be deposited 'in the near
est sub-treasury and the depositing
banks shall receive in lieu Thereon
United States emergency treasury
notes" These notes shall be in the ma
ture Of loans, subject to a taxation or
one-eighth of one per cent for the first
four months of their issuance; one-half
of one per cent for the second four
months, and one per cent Thereafter.
When the bank feels that the emer-
gency has passed and the loan is no
longer needed, it may redeem them
with actual money. Such redemption
monies shall constitute a special fund
for the purpose Of redeeming United
States emergency currency notes and
whenever they are presented for pay
ment, the notes to be then cancelled
and destroyed. These notes shall be
legal tender.
For the creation Of fund of $15,-
900, 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
sixteenth Of one per cent on the depos-
its Of banks so operating and whose
consent to be so taxed has been OBJ
tained.
The final section Of the bill provides
that no bank officer shall make loan
for the purpose Of stock gambling, and
fixes as the penalty for violation fine
in the amount Of the loan, or imprison-
ment.