Arizona republican., 1908-01-08


ing obligations of any state of the
United States; any legally authorized
bonds issued for municipal purposes
by a city or county Of the United
States which has been in existence for
the period of fifteen years and which
for the period of ten years previous to
such deposits has not default
ed in payment of the princi
pal or interest of any funded
debt authorized to be contracted by
municipal corporation which had at
such date more than twenty thousand
Inhabitants as established by the last
census, whose net Indebtedness does
not exceed 10 per cent. of the valua-
tion of the taxable property therein;
or by the first mortgage bonds of any
railroad company. not including street
railway bonds, which has paid divi-
dends of not less than 4 per cent. reg
ularly and continuously on the entire
capital stock for a period of not less
than five years previous to the deposit
of the bonds. The treasurer. with the
approval of the secretary of the treas
urry. may accept for the purposes of
this act. securities herein enumerated
time To time determine. and may at
any time require the deposit Of addi-
tional securities or require anv asso-
citation to change the character of the
security already on deposit.
Section three: All bonds deposited
to secure circulating notes, ISSUED in
accordance with the terms of this act,
shall be transferred to the treasury
of the United States in trust for the
association depositing them. with a
memorandum 10 that effect attached
to or written or printed on each bond
and signed bv the cashier or some
other officer OF the association, maxi
ing the deposits. receipt shall be
given the association by the comptrol
Ter for such bonds held in trust for the
association on whose behalf the trans
fer is made. and as security for the
redemption or payment of any circu
lating notes that have been or may be
delivered to such association. No as
signment or transfer Of any such bonds
by the treasurer shall be deemed valid
unless countersigned by the comptrol-
Ter"
The remaining portion of the bill
consists os additions To the existing
law. These additions provide for a tax
on the average amount Of such notes
Of bank circulation as are based upon
{ the deposits of bonds. other than bonds
OF the United States. provision being
made Cor q ta- on notes secured by
Panama canal bonds amounting to
one-fourth % per cent. each half
year on notes secured by Der cent.
bonds. An association having on de-
posit bonds bearing interest at a high
or rate than per cent. are required
TO nav a tax Of one-half per cent.
\ monthly tax Of one-half Of l per
cent. is imposed upon the average
amount Of notes issued on bonds other
than bonds of the United States, and
monthly returns under oath are re-
quired of the association to show the
average month"; amount OF notes so
secured i'm circulation. cXempting
United States bonds called for redemp-
tion b. the secretar.- Of the treasury.
II is permitted by the bill that nation
al banking associations MAY withdraw
their bonds held for circulation secur-
ity by the deposit of lawful money to
a DropoTtiOnate amount. Provision *
made dor engraving suitable notes in
convenient denominations. The notes
are to state upon their face that they
may be redeemed upon presentation to
the treasury department and are re-
suired to express upon their face the
promise Of the associations receiving
them To pay on demand. Ii is provid-
ed that national banking associations
located outside reserve or central re-
serve cities which are not required by
law To keep a reserve equal to i per
cent. of their deposits and liabilities.
shall hereafter hold at all times at
least two-thirds of such reserve under
the la"-.
Senator Clay Of Georgia announced