The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1908-06-06
PROVIDES FOR URGENCY CIRcU.
LATIoN UP TO FIVE HUN :
DRIED MILLIONS.
Kinds Of Bonds Acceptable az
Securities-Change Also Made in the
Percentage Of Reserve Funds Re-
qGired by National Banks-Act Also
Provides for Currency Commission.

pies of the Vreeland bill and adding
thereto from the Aldrich bill:
The reserve required to be retained
in central reserve and other reserve
cities is 10 per cent straight. A re-
demption fund of 10 per cent instead
of per cent required by the present
law is stipulated, and all of it shall be
held in Washington. The emergency
currency issuable shall not exceed in
the aggregate $500,0O0,OOG. Such emsf-
gency shall be subject to retirement
tax of per cent for the first two
months and an additional per cent
per month thereafter until 10 per cent
is reached.
State, county and municipal bonds
| shah be acceptable as securities for
emergency currency at 80 per cent of
their market value. Other bonds and
commercial paper shall be similarly
acceptable at Is per cent of their mar
| ket value.
No bank shall be allowed to take
excessive of 80 per cent of it's capital
| and surplus when the security offered
is commercial paper No emergency
currency may be taken out under any
circumstances unless the obligant bank
has already taken out, according to the
present law, an amount of currency
equal to 40 per cent of the capital stock
and surplus.
Discretion Of Secretary.
The provision in the Aldrich bill is
incorporated in the conference bill that
banks which hold state, county or mu-
| nicipal bonds may, with the approval
| of the secretary of the treasury, take
out additional currency directly upon
them up to 80 per cent of their market
value-that Is, they may do SO on their
individual initiative and responsibility.
The use of commercial paper as a
basis for taking out emergency cur
! rency may be exercised only by banks
which affiliate themselves in groups of
not less than ten with an aggregate
capllal and surplus of not less than
| 100000 Such groups shall be known
as national currency associations" in
stead of national clearing house as
| sociations," the clearing house associa-
tons of the country having objected to
the use of the latter name.
The clause creating currency COM
mission to be composed of nine mem
! bers of the senate and nine members
l H. =. III
Additional Provisions.
The bill provides:
THAT after January 1, 1909, national
banking associations located outside of
| reserve or central reserve cities, which
are now required by law to keep re-
| serve equal to Is per cent Of their de-
post liabilities, shall hereafter hold in
their own vaults four-fifths of their re-
serve, either in lawful money as ma
tional banks required by law, or in the
securities enumerated in this act,
| which shall have been approved by
| the secretary of the treasury; provid-
ed, however, that not more than one
third of the reserve required to be
kept in the vaults of such associations
| shall be held in such securities.
| That the deposits under the section
of retiring notes secured by the depos-
it of bonds other than bonds of the
| United States shall not be covered into
the treasury as required by section 6
Of an act entitled. An act directing the
| purchase Of silver bullion, etc. ap-
proved July IA, 1890, but shall be re
tanned in the treasury for the purpose
| of redeeming the notes of the bank
making such deposit.
Investment Of Funds.
| "That no national banking associa-
ton shall invest any part of its funds
| or deposits in the stocks or other Sc
! curity of any corporation or associa-
ton any of the officers or directors of
which are officers or directors Of such
banking association, and that any Of
ficer or director Of any national bank
ling association who knowingly violates
or consents to the violation of the fore
going provision shall be deemed guilty
of a misdemeanor and shall upon con-
viction thereof in any circuit or dis
trict court Of the United States be Inn
prisoned not less than one year and
not more than five years.
| "That it shall be the duty Of the
comptroller of the currency to cause
such reports Of notes In circulation to
be verified by examination Of the
banks records, and any officer of any
banking association falsely represent
ing the amount Of its notes In circu-
Ilation shall upon conviction thereof in
any circuit or district court Of the
United States be punished by q fine
OF not less than 81 900 nor more than
IS, 900. or by imprisonment for not
less than one year nor more than five
years, or by both such Zine and Inn
prisonment"
cordova to Have Daily Newspaper.
Cordova, May 30.-Local capitalists
are behind daily newspaper venture
which VII be launched here with the