The Parma herald. (Parma, Idaho) 1903-1917, 1908-01-18
CURRENCY Bill
FOR THE HO(IS
VIII BE Secured by Ban...
Banks to Deposit mo,.s '>
Government to Guarao,,. : N
Notes snd Depo sits-Er. ''a
Managed by Fowler. :"

Washington, Jan. 9.-Tbs s..
mittee Of the house committee On h ~
ing and currency, TO which was s,, sss'
cd the framing Of bill 10 incrsa., 4
elasticity of the currency go
conclusion yesterday and will ,ss''
favorably TO the iull Commits ' !. ,''
drawn In the main by Chairman r.
Ter, Of the committee. The Nm,
be introduced by Fowler and H..
to his committee, where 1t will ~
the working basis for the framina wiz
bill of possibly the same scos.
tenor.
The bill provides for the co0,,..
retirement OF all outstanding n..; s's
bank bond secured currency and s.a.
ICES In lieu thereof a currencv I h.s,
upon general assets of the banks s = :
worked out in this way: wv
The controller of the curren.v ia
designste throughout the country :"
tain redemption cities, 20 tho, w. "
shall be redemption city within ,''''
least "a hours reach OF every ns ,,t !
bank. The national banks will ia
cate to the controller of the curreue,
what redemption city they wish :,
joined. The controller will then ssl.s
time and place within each REDEEM
tion district for the organizing Of ~,
dietrict in the following manner:
Each national bank in that d,st,;r
regardless OF its capital stock, will |.
entitled to one vote. Represenlsti,s
of the banks will meet at q tina ~,
place designated and elect board 4
managers to consist of seven member
The seven will elect chairman ,h
will become deputy controller O. en-.
rency and assume control Of bjs ).
demption district, except that he ,hD
not have charge OF the enforcement
the criminal statutes
Each national bar k is authorized
present to the secretary of the trtssu
national bank notes and lawful mour
in lieu OF other national bank bond n
cured outstanding notes Then, iItb
banks application therefor is indorS
by the board of managers Of The n
demption district to which it belous
the bank will receive guaranteed erada
notes to the amount Of its capital steE
These notes will be subject to tai
2 per cent per annum. Each bank will
be required to deposit as guannt#
fund with the treasurer of the Cnila
States per cent of its average depoH
for the preceding II months and pa }
cent of the credit notes which It hka
out. The revenue thus obtained is b \
create and support a national guasn
tee fund OF 5000, 900, 900 for the guar
antee Of both the deposits and the cut
standing banknotes of every nations
bank. Eighty per cent of this fund ID
to be invested in United States bond
drawing 2 per cent interest, while h
remaining 20 per cent is to be deposit
ed in banks of the various redemptia
cities for the purpose of redeeming hl
guaranteed credit notes of the bantsd
the various redemption districts
When the national guarantee fund
reaches $25, 900, 900, which would b
almost simultaneous with the birth d
the new law, the government is re
CURED to return to the banks the Unit
ed States bonds now held as security
for Federal deposits, the object being
to.enable the banks to get control
the bonds, 80 that the government 90
invest the 80 per cent Of the guarantee
fund in Q per cent bonds and rerh
control. In buying these bonds tis
banks holding them shall be paid tbeh
purchas- price, providing then
exact purchase price can be proven.
1t is Fowler's idea, as embodIedh
the bill, to have the new credit note
printed on green background in diner
entiation from the yellow backgrouna
of the gold notes and white backgrouna
- IL