Los Angeles herald., 1908-02-29
FOWLER BILL
NDORSEDBY
COMMIT TEE
CURRENCY MEASURE FAVORED
FOR PASSAGE
LAW la AMENDED IN SIX SALIENT
FEATURES
Act Now Requires Government to. Col
Iect Claims and Pay National
Bank Checks-Other
New Features
By Associated Press.

BY Associated Press.
WASHINGTON. Feb. 2s.-By vote
of II to 5, three members being present
and not voting, the house COMMITTEES
on banking and currency today author
lied it's chairman, Representative FoW-
Ter OF New Jersey, to report to the
house the Fowler currency bill with the
recommendation that 1t be passed.
The vote was cast as follows:
Ayes-Fowler, New Jersey; Prince,
Illinois; Powers, Maine; McMoran,
Michigan; Weems, Ohio; McCleary,
Pennsylvania; Waldo, New York;
Hayes, California: Weeks, Massachu-
setts; Dury, New York: Gillespie, Texas.
Nays-Burton, Ohio; Ollie James,
Kentucy; Mckinley, Illinois; Lewis,
Georgia; Crawford, North Carolina.
Present and not voting-McHenry,
Pennsylvania; Pujo, louisiana; GILES,
Virginia.
MI. Weeks, in voting for the favor
able report of the bill, reserved the
right TO oppose on the floor the clause
providing for a federal guaranty for
national bank deposits.
Not Bound to Support 1t
Though the conclusion to report the
bill favorably was reached as the re-
suit Of weeks of hearing and exhaustive
discussion of its various provisions IN
executive session. the decision does not
commit the banking and currency COM
,nittee to it's support on the floor of
the house.
Ten of the eleven members who voted
for the favorable report reserved the
individual right to oppose any section
of it and to offer and urge any amend
Inent when the bill Is called up.
A majority of the committee felt the
necessity of getting the bill before the
house without further delay so that Its
provisions as revised in committee may
become subject of open debate botn
in the house and in the press OF the
country.
The committee amended the bill in
six of its salient features. The clause
nern,ittinC national banks to do trust
savings bank business was amended by
striking out the savings bank section;
The clause making all national banks
within each of the proposed reserve dls-
tficts specifically liable for 10 per cent
of the check and note liabilities OF
failed notional banks within that dis
trict was revised to read 25 per cent.
Original Form of Bill
The bill. as originally framed, allowed
each national bank to take out ma
iIonal credit notes to the extent of 100
per cent of it's capital stock, with the
approval of the comptroller of the
treasury, and an unlimited additional
amount with the approval of the board
of managers of the reserve district 10
which the bank belonged. This provis-
ion was revised so that the total
amount of credit notes issuable TO any
tank shall not exceed 200 per cent OF
its capital stock
The bill provides that of the deposit
guaranty fund to be created by a tax
Of 2 per cent on the credit notes issued,
so per cent should be invested In United
States 2 per cent bonds and 20 per cent
held in reserve. This is a gold fund.
The bill, as revised, stipulates the IN
xestment of the entire bond in United
states Is, and fixes their flat purchase
price at l04, which was the average
rrice for the month of February last.
Tho revised bill, in order to carry out
the bond currency retirement clause,
provides that after the guaranty fund
has reached the sum of s25,0OO,00O the
secretary of the treasury shall issue
gold certificates to take the place of
an equal amount of outstanding green
lacks. As the estimated annual tax
on credit notes would be $4,000. 900,
about fourteen years would be required
for the total retirement of the coun-
try's present bond-secured currency
after the guaranty fund reached the
amount of $95,Ooo,OoO.
One Feature Of Measure
One of the most interesting provisions
of the bill, as revised in committee
requires the government to collect its
claims and pay its current expenses
through the hank. That is, the gov
ernment would continue to hold in the
treasury the greenback redemption
fund of 150000,0 900 and the gold certih-
cate redemntion fund amounting tC
$S25, ,000, 600, but it's general fund for the
conduct of the government would be
kept on deposit in the various national
hanks. subject to check; and instead ol
Wnrds of proiaa