under the internal-revenue laws. And for refusal or neglect to make the return or payment herein provided for the banking association shall pay a penalty of two hundred dollars for every such default, to be collected by distraint. SECT. 4. That the amounts collected as tax under the provisions of this Act shall constitute a special fund in the Treasury of the United States to be denominated the depositors' surety fund, which fund shall be held to the order of the Secretary of the Treasury, to be used by him under such regulations as he may promulgate, to reimburse depositors in national banks, either in full or in such pro rata part as the condition of the said fund may allow, for loss occasioned by the failure of any national banking association, and for no other purpose except such as may be specifically authorized by law. SECT. 5. That all existing provisions of law for the assessment and collection of internal-revenue taxes, so far as applicable, are hereby made a part of this Act. S. 3807 IN THE SENATE OF THE UNITED STATES JANUARY 14, 1908 Mr. CURTIS introduced the following bill; which was read twice and referred to the Committee on Finance. A BILL AUTHORIZING NATIONAL BANKING INSTITUTIONS TO TAKE ADVANTAGE OF GUARANTEE BANK-DEPOSIT LAWS IN CERTAIN STATES, AND FOR OTHER PURPOSES. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled: That the Comptroller of the Currency be, and he is hereby, authorized and directed to issue a permit to any national banking institution doing business in States which have a guarantee bank-deposit law to take advantage of such law, provided said national banking institution is authorized to do so by a vote of the majority of the stock of said institution at a meeting of the stockholders called for that purpose. S. 1239 IN THE SENATE OF THE UNITED STATES DECEMBER 5, 1907 Mr. KNOX (by request) introduced the following bill; which was read twice and referred to the Committee on Finance. A BILL TO PROVIDE AN ELASTIC CURRENCY BY MAKING IT TAX ON SAID DEPOSITORS OF BONDS WHILE SAID BONDS Be it enacted by the Senate and House of Representatives of the That the Secretary of the Treasury is hereby authorized and required, as rapidly as practicable, to cause to be provided and kept in readiness for issuing, upon such demand or de mands as may be made, according to the provisions of this Act, a supply of circulating notes to be known as United States currency notes. Said notes, in the payment of all debts, either public or private, shall be legal tender for a dollar of twenty-five and eight-tenths grains of gold, nine-tenths fine, for each dollar they represent, and when presented to the United States Treasury they shall be redeemed in gold coin of the United States; and when so redeemed they may be reissued in the manner provided in this Act for their first issue. Said notes shall be provided in sufficient quantites to insure there being stored in the Treasury and subtreasuries at all times ready for issue an amount of them equivalent to five hundred millions of dollars, and they shall be issued only when secured by deposits of bonds, as provided in section three of this Act, or in exchange for gold coin of the United States. United States currency notes when held by any national banking association may be counted as a part of its lawful reserve. SECT. 2. That in order to furnish suitable notes for circulation, the Secretary of the Treasury shall cause plates and dies to be engraved in the best manner to guard against counterfeiting and fraudulent alterations, and shall have printed therefrom and numbered such quantity of circulating notes of the denominations of five dollars, ten dollars, twenty dollars, fifty dollars, one hundred dollars, five hundred dollars, one thousand dollars, five thousand dollars, and ten thousand dollars as may be required to supply the demands of those entitled to receive the same. Such notes shall express upon their face or back: First. That they are secured by gold coin, or by bonds deposited with the Treasurer of the United States. Second. That in payment of all debts, either public or private, they are legal tender for a dollar of twenty-five and eight-tenths grains of gold, nine-tenths fine, for each dollar they represent. Third. That United States currency notes, if presented to the Treasurer of the United States, shall be payable in gold coin of the United States. Fourth. The engraved signatures of the Treasurer and Register and the imprint of the seal of the Treasury. Fifth. Such devices and such other statements, not inconsistent with the provisions of this Act, as the Secretary of the Treasury shall, by regulation, direct. SECT. 3. That any and all national banking associations, saving institutions, State banks, trust companies, or other corporations, or firms, or individuals, so desiring may deposit with the Treasurer of the United States, or any assistant treasurer, bonds of the United States, or of any State, county, or municipality in the United States which may be approved by the Secretary of the Treasury, and such depositors shall receive in exchange for the bonds deposited United States currency notes, such as are provided for by sections one and two of this Act, in amounts equal to ninety-five per centum in the case of United States bonds, and to seventy-five per centum in the case of State, county, and municipal bonds, of the par value of the bonds deposited: Provided, however, That should the market value of such bonds, in the judgment of the Secretary of the Treasury, be or become depreciated below their par value, the Treasurer of the United States is hereby directed to require the depositor to deposit in addition lawful money of the United States equal to the depreciation of the market value of said bonds below their par value; and should the depositor fail to promptly make the said additional deposits of lawful money, or should he fail for three months to pay the tax hereinafter provided for, the Treasurer of the United States is hereby required to sell said bonds at public sale. Each depositor of bonds under the provisions of this Act shall pay quarterly, on the first days of March, June, September, and December, to the Treasurer of the United States, a tax equal to five per centum per annum, if United States bonds are deposited, and to seven per centum per annum if other bonds are deposited, on the amount of said notes received by him during the time said bonds remain on deposit, and each depositor shall receive all interest on said bonds the same as though they were in his own possession. All money received by the Treasury Department in payment of the tax herein provided for shall be used for the purchase of gold coin, and said gold coin shall be added to the separate fund for the redemption of United States currency notes. SECT. 4. That any depositor of bonds under this Act, or his lawful representative, successors, or assigns, may at any time demand and receive the bonds deposited, or the proceeds of their sale, as provided by this Act, together with any and all deposits of lawful money which the depositor may have been required to make, upon the return to the Treasurer of the United States of an amount of United States currency notes or of gold coin of the United States equal to the face value of the notes received by the said depositor and the unpaid tax, as herein provided. Any gold coin received by the Treasury Department under the operations of sections one, four and six of this Act shall be placed into a separate fund and used only for the redemption of the United States currency notes herein provided for. So much of the redemption fund provided for by the Act of March fourteen, nineteen hundred, as shall be necessary for the redemption of any of these notes shall be temporarily transferred to this separate fund, and replaced as soon as possible. SECT. 5. That on and after the passage of this Act national banking associations, in emergencies and with the approval of the Secretary of the Treasury, may hold and count as fifty per centum of their legally required cash reserves, an amount of United States bonds or of any State, county, or municipal bonds which may be approved by the Secretary of the Treasury for the purposes enumerated in section three of this Act and by this Act made convertible, which in the case of United States bonds at ninety-five per centum of their par value, and in the case of State, county, and municipal bonds at seventy |