The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1874-12-03
Of obtaining lawful money with which to re-

of obtaining lawful money with which to re.
deem them. The gold coin of the country
would then make It's appearance in answer to
the demand for an additional amount of law
full money, and specie payment would follow.
redemption In it's proper sense implies the
exchange OF promise to pay for the thing
promised, namely, coin or it's representative,
which is convertible into coin on demand.
| The effect of such redemption is to confine
banks of issue to legitimate business, which
is the dlscounting of commercial paper. If
banks OF issue are obliged to pay their circu-
lating notes once IN sixty or ninety days,
they must discount such promlssory notes
only as will certainly be paid
within that time. If the pay
ment Of bank notes be frequently de-
manded banks of issue cannot safely invest
their capital in real-estate loans, in doubtful
stocks or bonds, in ccommodation-notes
which require renewal or in loans on doubt
full security, but must have their capital at all
times invested in loans which will be prompt
ly paid at maturity. Such condition indi-
Gates healthful business, and promotes
sound banking; and the reduction of the
amount OF legal-tender notes, accompanied
with such Increase of national bank notes as
may be required, will secure a proper system
of redemption, render free banking practical
BILE, and gradually restore specie payments
without necessarily decreasing the amount of
the circulating medium.
The following amendments to previous acts
are recommended
Tristan amendment to section l of the
act of March 8, 1878, providing that if any
shareholder or shareholders of banks whose
capital stock is impaired shall refuse, after
three months notice, to pay the assessment
as provided IN said section, sufficient amount
OF the capital stock of such delinquent share
holder or shareholders may be sold to make
good the deficiency.
Sec0nd-An amendment to section SO. of
the National Bank act extending the limit of
the liabilities of any association, person. COM
pany, or firm, for money borrowed, from 10
per cent. of capital paid in to Is per cent. of
capital and surplus for banks located in re-
demption cities. and one-tenth of capital and
surplus for other banks.
1hlrd-Also prohibiting the deposit of more
than 10 per cent. Of the capital of national
bank with any private banker, or any person
or association, other than national banking
association.
FOurtt-That national banks shall be liable to
make good any deficiency which may hereafter
arise in any special deposit with such bank
unless receipt shall be produced by the
owner of such deposit in which the liability of
the bank shall be distinctly stated.
Flh-Ths repeal Of the 2-cent stamp-tax,
or all act providing that the bills of exchange,
checks or receipts in place of checks drawn
upon any bank or banker, shall be subject to
stamp-tax, with penalty of $40 for each
violation thereof
The Comptroller renews the recommended
tons contained in his last two reports for the
passage OF an act to prevent the issue and cir
culation of unauthorized currency, and re-
curing the words " counterfeit, Z" 9 altered"
illegal" to be stamped on all counterfeit or
unauthorized issues also his recommends
ton for the repeal OF the fourth section of
the act of June l, 1870, so far as it applies
to the organization of savings banks in the
District OF Columbia, and for the enactment
IN its stead of general law in reference 20
such savings banks. with judicions conditions
and restrictions.