Show EXTRACTS ALDRICH ALDRICH- VREELAND LA LAW W BY JOHN JOlIN A. A ANDERSON This law aw is the authority for th the money we are now using which reads Secured by United States Bonds o or Other Se Securities V It makes it possible for the bankers under conditions similar to those prior to the panic of 1907 t to expand the commercial money of th the United States See Sec I 1 paragraph 3 The The national currency association herein hercia provided fo foshall for forsha forshall sha shall have any and all aU powers powers' necessary to to carry out the purposes of this section section sec see tion namely to render available ander under un an- der the direction and control of the tho secretary sec see of the treasury as a basis fo for additional circulation any any securities in in in- eluding commercial paper held by a national bankin banking association For th the purpose of obtaining such suh additional cir circulation circulation cir cir- any bank belon belonging to any national national national na na- na- na currency association having having- circulating cir circulating cir cir- notes outstanding etc may deposit with and transfer to th the association in trust for the United Unite States for the purpose hereinafter provided provided pro pro- vided such of the securities a above ove mentioned mentioned men men- as as' as may may be satisfactory to th the board of the association Para Paragraph raph 4 But 4 But as between the several several sev sev- sev eral banks composing such association each bank shall be liable only in th the proportion that its ana surplus bears to the a aggregate capital and surplus surplus surplus sur sur- plus of a all such banks If Jf sue such fund be insufficient for that purpose the association may recover from th the bank the amount of the deficiency b by suit in the circuit circuits court of the Unite States and shall have the benefit o othe of the lien hereinbefore provided for i in favor of the United States upon the assets assets assets as as- sets of such bank Sec See 3 That 3 That any national banking association association as as- which has circulating notes note outstanding secured by deposit o of United States bonds to an amount o of not less than 40 per cent of its capital capita stock and which has a surplus of no noless not less than 20 per cent may make application application application cation to the comptroller of the currency currency curren curren- cy for authority to issue additional circulating circulating circulating cir cir- cir cir- notes to be secured by bythe the deposit deposit de de- de posit of bonds other than bon bonds is of th the United States not exceeding in amount 90 per cent of the par value alue o of any bonds so deposited Sec 12 That 12 That circulating notes of national national national na na- na- na bankin banking associations when presented presented pre pre- to the treasury for redemption as provided in section 3 of the act approved approved ap ap- ap proved June 20 1874 shall shaU be redeemed in lawful money of the United States Sec 9 That 9 That any national bankin banking association association association as as- desiring to withdraw its circulating circulating circulating cir cir- cir cir- not notes eSt secured by deposit o of United States londs bonds in the manner provided provided pro pro- vided in in section 4 of this act approved June 20 1874 is hereby authorized fo for that purpose to deposit depos t lawful money with the tre treasurer surer of the United States State and nd with the consent of the comptroller of the currency and approval of gf tf the secretary sec see rotary of of the treasury to withdraw a proportionate amount of bonds held a as security for its circulating notes in the order of such deposits provided that tha not more than 9 of lawful money shall shaU be so deposited during an any calendar month for this purpose Sec There shall not be outstanding outstanding out out- standing at any time circulating notes issued under the provisions of this act to an amount of more than Extract from speech of Congressman Hill Full of Connecticut I look around on this floor and see bank presidents and bank dire directors tors anc ancI and andI I I am going oin to propose a question Didan Did Die an of You TOU gentlemen in your connection connection connee tion with too the bankin banking system stem of the United States when you proposed to issue some notes or to to withdraw them ever take into consideration the genera general good or did you do it merely with ref to the profit or loss Joss of your Jour own bank Let somebody stand up anc and show me one a patriot who has done it for forand forand forand and general good Lau Laughter I sajas say sayas sayas as a bank officer of a number of years years years' experience that it never er entered my tho 1 thought ht to do it t. t I J always felt that i should be derelict er in in my duty to our stockholders if I did not consider first the question of profit and loss to our oui own bank And AntI you can not get et independent banks in this country to act in harmony with reference to note issues or with reference to withdrawals except on the question of profit and loss Joss oss We may as well faco that |