Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-10-08

debts-a cons-lmmation devoutly to be wished
(e). All railroad bonds deposited must BID
secured by mortgage, and none shall he OF
the form known as trust or debenture
bonds.
a.. No bank shall have more than twenty
per cent of its bonds on deposit of the issue
of any one state, county, city or railroad.
This provision is intended to protect the
banks from loss. but Is, OF course, not needed
for the security of the government or the note
holder.
fg). Whenever any bond upon deposit I'M
der this law shall sell upon any stock ex-
change upon which it is listed for i period
than 100, the comptroller of the currency
shall require it TO be replaced by a bond
fully meeting the requirements of this law,
Oh. Whenever any railroad which was
paying dividends at the time its bonds were
accepted as security for the circulating
notes of any bank ceases to pay regular
dividends the comptroller of the currency
shall require said oank to substitute other
bonds of the character called for by this
law.
.. Any president, vice-president, mana
ger, secretary, treasurer, auditor, or other
officer OF any interstate railroad tany OF
whose bonds are on deposit under this law
who shall Knowingly issue or permit to be
issued any false statement of the earnings,
expenses or condition of said railroad, shall
be considered guilty of felony, and be sub
iect to trial in any court in the United
States, and if found guilty shall be SEN
fenced to imprisonment at hard labor for u
term of not less than ten nor more than
twenty years. and may be fined in addition,
at the discretion OF the court, in any sum
not exceeding 100000.
The advantages of this portion OF the Law,
which IL IS a pity We are compelled to limit to
interstate roads, will not be confined to the
- w O. a nrnT on
the general public, which has long been needed,
and which will tend to give far greater staoil-
lty to American railway investments.
8. In lien of all other United States taxes
each bank shall pay in the usual manner a
semi-annual tax of per cent two per cent
per annum) upon the average amount of its
notes in circulation.
This Will produce large revenue for the gov
eminent. and will tend TO prevent the creation
of new forms OF taxation. which will be required
TO meet It's present eGtravagant expenditures.
When money on call falls to one-hah per cent,
or even TO one and half per cent per annun,
this rate of taxation will cause Eastern banks
TO deposit lawful money al Washington for tho
redemption Of their notes, and thus impart an
element of elasticity to the general circulatloli
Experience may prove that this tax can Dc
still further increased, adding to the income of
the treasury and giving still greater texibility
to the volume OF paper money
T. The present United States tax
upon the circulating notes of state banks
shall cease, provided such notes are secured
in precisely the same manner as national
bank notes by bonds deposited with the
auditor or treasurer of the state; and pro-
vided, also, that the state in which said
bank is located shall guarantee the pay
ment of its circulating notes. State banks
shall pay the same taxes on their notes and
in the same manner as national banks.
This would. in every state where there was q
demand for it, restore state banking TO its old
condition usefulness, silence
now well-founded charge that national banks
enjoy an exclusive ana, therefore. special priv.
nege-that OF issuing circulating notes
B. The amount OF the notes issued by any
state bank shall be under the control Of the
state in which it Is located. and nothing in
this la shall restrict the circulating notes
of any state bank to 80 per cent of the capi
tai paid i'll; but no bank shall issue notes in
excess of 80 per cent of the par value of the
bonds deposited by it to secure the payment
of said notes.
This provision will be recognized as sound b,
most competent bankers. and experience viii
probably lead to its extension ultimately ID
national banks. 1t gives the banks also tho
power promptly TO increase the money in Cir
culation when urgently needed, such extra sup
ply being retired under the influence OF the TAI
burden unless there should continue to be
reasonable demand for it; thus having ten
dency still further TO develop fexibility in our
financial system.
g. State banks shall not be compelled to
redeem their notes anywhere but at theiI
own counters.
Should II be deemed desirable in any state 10
make the circulation OF the notes issued by It's
banks local. agi to throw about il influences
which would tend to hold them within the
bounds OF the state, this part OF the Law would
provide way for doing SO.
Z. All state bank-notes issued under
this law to be, like national bank-potes, re-
deemable in United States Legal tender,
coin or notes.