The free lance. (Fredericksburg, Va.) 1885-1926, 1908-02-11

Deals With Reserve Fund, Elastic Cur
reney and Aims Blow at Stock Gam
bline-crestes Fund to Pay Deposi-
tors Of Failed Banks.
Washington. Feb. S.-What will BE-
known as tho minority currency bi T.
was introduced by Representative
John Sharp Williams (Miss). the
Democratic leader of the house. who
drew the measure as a result of a
conference OF Democrats behind closed
doors. Among the provisions OF the
bill are the following:
II repeals all laws permitting na-
tional banks to keep three-ffths OF
their reserves in national banks OF
reserve cities. and similar laws per.
mitting such deposit OF one-half Of
the reserve amounts.
II provides that not less than one
half OF the reserves now required to
be kept in lawful money in central
reserve cities. shall hereafter be held
in gold or gold certificates.
1t does away with the payment OF
national bank examiners by the fee
system, and substitutes salaries not
less than 5000 nor In excess OF 5000
yearly. with actual expenses.
II provides that the total liabilities
OF any national bank. inclusive OF the
liabilities Of It's members. shall not
exceed one-tenth OF the banks paid.in
and unimpaired capital stock and one
tenth OF It's unimpaired surplus fund
and that In no event shall the lIabill.
ties exceed 30 per cent OF the capital
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 pa
per actually owned by the person ne
gotiating It. shall not be considered as
liabilities" Violation OF this section IS
made a rnisdemeanor. punishable by
fine or Imprisonment.
No national bank shall loan In the
aggregate more than seven times the
amount OF It's paii-up capital plus its
unimpaired surplus. Violation Is pun.
ishable as provided in the section pre-
ceding.
The comptroller Of The currency.
Immediately after the passage OF the
bill. shall furnish a copy OF the new
law to each bank in the country and
inquire II It will accept the provisions
Consent shall be binding. and the liza.
bilitites attaching to consent may be
enforced by the comptroller. Agree.
ment TO accept the provisions shall
entitle state banks and trust com.
pcrics TO the benefits OF the new law.
The elastic currency feature OF the
bin IS contained in a section which |
provides that inter-convertible bonds |
may be deposited "in the nearest sub |
treasury" and the depositing bani
shall receive In lieu thereof United |
States emergency treasury notes"
These notes shall be in the nature o. |
a loan. subject to taxation OF on |
eighth Of one per cent for the frs
four months OF their Issuance. one |
half OF one per cent for the secons |
four months. and one per cent there
after. When the bank feels that u |
emergency has passed AMI the Lar
notes are no longer needed. u m~
redeem them with actual money Such |
redemption monies shall constitute .
special furd for the purpose Of r, !
deemlng United States emergency |
currency notes whenever they are pc.
sented for pavment. the notes n b, |
hen cancelled and destroyed Thesc |
notes shall be legal tender.
For the creation OF a fund of SIS. |
700 o0o for the payment of deDoeito--
4 feiled hanks operating un1er t.
'rovieicns ~ this law. there is sutho-
zed the imposition Of tax OF on
'iyteerth OF one per cent on the d. |
oosits of banks so operating ana
whose consent to be so taxed has besn
obtained.
The final section of the bin provides
that no bank officer she'll make Iran
for the purpose OF stock gambling |
and fixes as the penalty for violation |
a fine IN the amount of the loan. or
Imprisonment.