Kingsbury County independent. (DeSmet, Kingsbury County, S.D.) 1894-1929, 1908-01-17
CURRENCY BASED ON ALL
BANK ASSETS, HOUSE PLAN

Washington, Jan. 1.-THE House cur
rency bill provides for the complete re-
tirement of all present outstanding ma
tional bank bond secured currency. and
authorizes in lieu thereof a currency
based upon general assets of the banks.
The comptroller of the currency will
designate throughout the country GER
tain redemption cities, so that there
shall be a redemption city within at
least "a hours reach of each national
bank. The national banks will indi-
cate to the comptroller of the cur
rency to what redemption city they
wish to be joined. The comptroller will
then select a time and place within
each redemption district for the or
gan!zing of that district in the follow
ing manner
Each national bank in that district,
regardless of its capital stock, Will be
entitled to one vote. Representatives OF
the bank will meet at a time and place
designated and elect a board of man
ayers to consist of seven members. The
saven will select a chairman, who Will
become a deputy comptroller of the cur
rency and assume control of his re-
demption district, except that he shall
not have charge Of the enforcement
of the criminal statutes.
Each national bank is authorized to
present TO the SECRETARY VI TIE iC1S-
ury national bank notes n lawful
moneys i'm lieu of other national bank
bonds securing outstanding notes.
Then, if the banks application therefor
Is Endorsed by the board of managers
of the redemption district to which 1t
belongs, the bank will receive guaran-
teed credit notes to the amount of its
capital stock. These notes will be sub
feet to a tax Of 2 per cent per annum.
Each bank will be required TO deposit
as q guaranty fund with the treasurer
Of the United States 5 per cent OF its
average deposits for the preceding II
months and 5 per cent of the credit
notes which 1t takes out. The revenue
thus obtained is to create and support
a national guaranty fund Of $500, 900, 900
for the guaranty of both the deposits
and the outstanding bank notes of ev-
cry national bank. Eighty per cent of
this fund is to be invested In United
States bonds drawing 2 per cent in
terest, while the remaining 20 per cent
is to be deposited In banks of the va
rious redemption cities for the purpose
of redeeming the guaranteed credit
notes of the banks in the various re-
demption districts.
When the national guaranty fund
reaches $25, 200, 900, which would be al
most simultaneous with the birth of
the new law, the government is re-
quired to return to the banks of the
United States bonds which the govern
ment now holds as security for fed
eral deposits, the object being en-
able the banks to get control of the
bonds so that the government car in
vest the 80 per cent of the guaranty
fund in 2 per cent bonds and regain
control.
In buying these bonds the banks hold
ing them shall be paid their original
purchase price, provided the bonds were
bought before January /, 1908, and pro-
viding their exact purchase price can
be proved.
1t is Mr.. Fowler's idea, as embodied
in the bill, to ave the new credit notes
printed on a green background, in diff
ferentation from the yellow background
of the gold notes and white background
of the silver certificates.