Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1863-02-27
synopsis OF the Currency Bin.

Bill having passed both Houses eof Con
gress, viii speedily become law. a syn
Opsis of Secretary Chases plan has beer
given in the LEADER, but a synopsis Of
the bill as it passed will be of service tC
our readers.
Banks are to be organized by the sub.
seription Of stock in shares of 500 each
Stockholders are entitled to one vote for
every share, and are allowed to vote BY
proxy, under prOperly-guarded restric-
tions. If bank of issue be contemplated,
which is by no means q natural conse-
quence of the bill, then bonds Of the United
States must be deposited in the Treasury,
for which the Government will furnish
notes for the bank to sign, circulate, and
redeem as its own, to the amount of Copper
cent. of the bonds deposited. No notes
will be furnished of less amount than S.
and no other notes may be issued by the
bank.
These notes, during the suspension of
specie payments, are to be a legal tender
for all debts except public dues, by and to
all persons, except to the banks issuing
them. The banks must redeem them in
lawful money Of the United States, and
for this purpose are required to keep on
hand an amount equivalent to twenty-five
per cent. Of the amount of notes they NAV
have in circulation, and should this re-
demption fund fall below this twenty-five
per cent, they are forbidden to issue any
more notes until the deficiency is made
good.
Should the bonds Of the United States.
deposited in the Treasury as security for
the notes furnished to the banks for circu-
lation, fall below par, and continue 50 for
specified period, the banks are required
to deposit additional bonds The Govern
ment will appoint a special agent to take
charge Of the affairs of any association
that fails to redeem its issues, and will
proceed to redeem the notes Of such asso-
citation at the public Treasury, retaining
and selling the bonds deposited to pay for /
the same.
Banks are forbidden from paying out |
uncurrent ordepreciated money over their |
counters; from specializing in real estate;
from loaning extensively TO their own /
stockholders; from paying any dividends |
upon profits, except all bad and doubtful 1
debts are first deducted from such profits;
from pledging or depositing their own
funds as security for any debts due to or
advances received from other banks; and
from loaning to their own officers, directors
and stockholders, upon terms more favor
able than those exaeted from strangers.
Officers, directors and stockholders are
from becoming indebted to their
own banks beyond certain prescribed
amount, in defined proportion to the stock
owned by them; and they are forbidden to
sell or transfer any stock owned by them
while directly or indirectly indebted to
heir bank
Banks are required periodically to pub
ish statement Of their condition, made
lhder oath; to keep publicly posted, for
he information of all who may be inter-
,sted, list Of the names and residences Of
heir officers, directors and stockholders,
md of the amount Of stock owned by each;
md periodical examination into the con-
lition Of their affairs is to be made by
person appointed by the Government.
Payments, transfers, assignments, mort
yages, deposits, or any acts prejudieial to
.reditors done in contemplation Of in
iolvency, are declared void. Directors are
'equired to be sworn officers, and acting
Inder oath.
Ample provisions protect associations
n the exercise Of all customary powers
md privileges pertaining to legitimate
Danking Their old and worn or mutil-
ted notes are constantly renewed by Gov
rnment without cost. Interest upon
Donds deposited by the banks as security
or the circulation furnished is to be paid
0 them semi-annually, in gold; thekuown
nd willful violation Of any provision by
which the banks are to be governed is pun
shed by forfeiture of the charter, and
.mple penal provisions protect them from
injury, By prescribing punishment for
heft, eounterfeiting, forgery and other
wrongs committed against them.
Such are the provisions Of the bill /; no
ne can fail to perceive with what jeal-
us care the enlightened framer has pro-
ected the rights of the people who are to
lse the notes, and Of the capitalists who
re to bank under it.
While it is a very popular error that the
hief business of banking consists in issu-
AB uAA AAouAotAAB AOsS95 AAAH; III 4SdAAtJ1 l
S so unimportsnt portion Of a banking
that many banks issue no notes
It all. As general rule the heavier and
more extensive a business bank trans
icts the fewer the notes it issues or circu-
ates; many banks whose capital is count
d by millions, do not count their issues Of
lotes even by thousands. While there
ore, every provision is made to protect
in the legitimate business Of
banking, the people are also equally pro-
eoted from the risk and loss arising from
vicious and irregular system of banking
entirely at war with the conservative eau
ion of those capitalists who have some
hing to lose as well as to gain, in their
banking transactions.
This bill will deal a death blow to IN
iound banking. A new era is about to be
nsugursted. Confidence, that CONNER
,ial plant Of such very slow growth, viii
low take root and become permanently
It is not anticipating too
much to expect to see the time when in
London bank note from the United States
will be as valuable as a note Of the Bank
If England is here, and the curse of dollar
bills viii have been driven out by an
abundance Of specie supplied by proud
array Of specie. paying banks.
InfeIiciry at Plymouth, In
diana.