The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1861-12-31
The Bill Creating a National BanEv-
OnfIine of LIS Prnvisinna


The suspension of specie payment in the
East has attracted attention to the question
of a National currency. "A bill has been
introduced into the House authorizing a
National currency, secured by the hypothe-
cation of the United States stocks. The
following is brief synopsis of the act:
1t provides for United States Bank De-
partment in the Treasury building, with a
Bank Comptroller, appointed by the Presi-
dent and Senate with salary of FIVE thou
sand dollars, to have general charge and
supervision over all banking operations
under the act. It provides for the issue of
circulating notes, or similitude of bank
notes, to be countersigned and registered in
the Bank Department; to be stamped on
their face, and secured by pledge of u. S.
stocks, and receivable for all dues to and
from the United States except duties en-
imports, and made legal tenders for these
purposes All existing banks in all States
and Territories of the United States, may
/ elect or not to avail themselves of the benefit
of this national currency, on complying
with the provisions of this act. New banks
may be formed by any number Of persons
under its provisions, with a capital Of one
| hundred thousand dollars or more, to cir
culate this currency and carry on a general
| banking business in any part Of the United
| States. All banks issuing national currency
are required to keep constantly or hand
! twenty-five per cent. of their outstanding
| circulating notes in specie, to secure the
! prompt redemption of the same. Stock
holders are made individually liable for the
! debts Of bank to tie amount of their stock
Banks organized under this act are TO
have seal, may sue and be sued in all
courts, and may make all bylaws necessary
| to carry on their business. Banks under
the act are to make quarterly reports to
| the Bank Comptroller, who is annually to
| report to Congress. If banks fail to re-
deem their bills and become insOlvent, the Sc
curities in the hands of the Bank Comptrol-
lers may be sold at public auction and bill
! holders first paid insolvent banks to have
receivers appointed and be wound up by
order of Court.s Frauds and counterfeiting
are guarded against. This bill, the COM
lnittee believe, will create a large demand
for United States Stocks, to be used for
banking purposes. The bills issued on a
| hypOthecation of these Stocks, will have
| the faith of the Government pledged to that
! extent for their redemption. These bills
are to be receivable for taxes, and all other
| puonc cues 10 tue Government, ana TOT all
| salaries, and all other debts and demands
due from the United States for services rem
dered and for supplies and material furn-
ished. The banks issuing this National
currency are made liable for its redemption,
and the stockholders are made liable for il.
The bill-holder has security, first of the u.
| S. Stocks deposited with the Bank Comp
| troller; second, liability of bank issuing
bills; and third, the personal liability Of the
stockholders of banks to an amount equal to
| their stock and it is thought to constitute
a very safe and secure currency for circula-
| ton among the people, to pay the army and
all other extraordinary expenses Of the war.