The daily Evansville journal. (Evansville, Ind.) 1862-1863, 1863-02-23

Synopsis OF the Currency Bill.


favor. Among the people there exists
for its enactment a strong demand which
is gaining force every day. Capitalists
already stand prepared to organize bank
ing provisions The moderate men of
the nation. unswayed by any bias but
treason and reflection, all desire to see it
become q Law. Almost every merchant
and manufacturer, who is not interested
in bank, regard it as measure most
urgently needed; and there appears to
be an earnest and laudable desire on the
part of Congress, to meet the wants of
the country
Although we have frequently discussed
its merits and urged its necessity, yet
never having published synopsis of it,
we therefore append the following one,
of those provisions of most interest to the
public:
Banks are to be organized by the sub
scription of stock in shares of 500 each.
Stockholders are entitled to one vote for
every share. and are allowed to vote by
proxy, under properl Y guarded restrc-
tons. Ii bank of issue be contem-
plated. which is by no means a natural
consequence OF the bill, then bonds of
the United States must be deposited in
the Treasury, for which the Government
will furnish notes for the banks to sign,
circulate and redeem as its own, to the
amount Of 80 per cent of the bonds de-
posted. 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 legal ten
der for all debts except public dues, by
and to ali 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 OF SIP
equivalent to - per cent. Of the amount
Of notes they have in circulation, and
should this redemption fund fall below
% per cent, they are folb dden to issue
any more notes until the deficiency is
made good.
Should the bonds of the Unired States,
deposited in the Treasury as security for
the notes furnished to the banks for cir
culation, fall far below par, and continue
so for specified period, the banks are re-
quired TO deposit additional bonds The
Government will appoint special agent
to take charge of the affairs of the asso-
citation that fails to redeem its issues,
and will proceed to redeem the notes of
such associations at the public Treasury,
retaining and selling the bonds depos-
tied to pay for the same.
Banks are forbidden from paying out
uncurrent or deprecated money over
their counters; from specializing in real
estate; from loaning extensively to their
own stockholders; from paying any div
idends upon profits, except all bad and
doubtful 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 favorable than those exacted
from strangers.
Officers, directors and stockholders are
forbidden from becoming indebted to
their own banks beyond a certain pre-
scribed 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 indi-
rectiy indebted 10 their bank.
Banks are required periodically to pub
lish statement of their condition, made
under oath; to keep publicly posted, for
the information of all who NAV be inter-
eSted, a list of the names and residences
of their officers, directors and stockhold-
ers, and OF the amount Of stock owned by
each; and a periodical examination
into the condition of their affairs is to be
made by person appointed by the Gov
eminent
Payments, transfers, assignments, mort
cages, deposits, or any acts preiudicial
to creditors done in contemplation of in.
soIvency, are declared void Directors
are required to be sworn officers, and
acting under oath.
Ample provisions protect associations
in the exercise of all customary powers
and privileges pertaining to legitimate
banking. Their old and worn or mutila-
ted notes are constantly renewed by Gov
eminent without cost. Interest upon
bonds deposited by the banks as security
for tine circulation furnished, is to be
paid TO them semiannuaily, in gold; the
known and wiliful violation Of any pro-
vision by which the banks are to be gov
erned is punished by forfeiture of the
charter and ample penal provisions pro-
teet them from injury by prescribing pun
ishment for theft, counterieiting, forgery,
and other wrongs committed against
them.
Such are the provisions of this bill.
No one can fail to perceive with what
jealous care the enlightened Trainer has
protected the rights of the people who
are to use the notes, and of the capital
lists who will bank under it.
While it is a very popular error that
the chief business of banking consists in
issuing and circulating notes, this, in re-
ality. is SO unimportant portion of
banking business that many banks issue
no notes at all As general rule, the
heavie- and more extensive bushes a
bank transacts, the fewer notes it issues
and circuldtes; many banks whose capt
tai is counted by millions, do not count
their issues of notes even by thousands.
Will, therefore, every provision is made
to protect associations in the legitimate
business of banking, the people are also
equally protected from the risk and loss
arising from vicious and irregular sys-
TEN of banking, entirely at war with the