Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-10-05
THE HARTER PLAN.
How an Ohio Congressman Would Modify
the National Banking Law to Secure
Permanent Bank System.
The Forum

!. The list of bonds acceptable as security
for circulating notes should be enlarged SO
as to include state, county, city and railroad
bonds under the following rules:
Street railroad bonds are excluded. because
their franchises are usually Of short duration;
and bonds secured by mortgage upon farms
and other real estate have always proved in
feror and usually unsafe security for bank
notes.
ta) All bonds thus rendered available
must be registered. and the principal and
interest must he payable III gold OF the pres
ent standard of weight and tineneSs.
There are enough bonds Of this kind now in
existence and available to increase the bank
note circulation several hundred millions; ana
most bonds issued hereafter would naturally be
registered, and payable Ill gold
to-. All such bonds must have been listed
for at least five years prior 10 their deposit
as security for circulation, upon at least
one stock exchange located i'll some city IN
the United States having Il population Of
5O0,000 or more.
This would exclude ali bonds except those
having well established character. Us well a.
recognized high value.
tcl No bond which has ever been in de-
fault for non-payment of interest, or which
has sold on any stock exchange below par
within five Years. or which has sold ON any
stock exchange Mt less than premium OF >
per cent above par within three years of its
proposed deposit rs security for clrcula-
ton, shall be accepted under this law.
The result OF this would probably ne that the
bonds deposited as security for circulation
would have an average gold market value of at
least 10. which wOulIi make them to-day very
much better security for bank note circulation
than United States bonds were from 1862 TO
1866.
tD. No state bond representing 4 per
capita debt of over two dollars for each of
its citizens, no county bond representing
per capita debt Of over four dollars. and no
city bond representing per capita debt of
over eight dollars, shall be accepted as Sc
curity for bank-notes.
The object of this is to discourage rather than
encourage the increase OF state. county and city
dcbts-a contamination devoutly to be wished.
(el All railroad bonds deposited must be
secured by mortgage, and none shall be 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 10 protect the
banks from loss. but iS. of course. not needed
for the security OF the government or the note
holder.
(g). Whenever any bond upon deposit un-
der this law shall sell upon any stock ex-
change upon which it is listed for 4 period
of thirty days at an average price of less
IMAM lUD, the tOLlDlIOIISF Oh Tie currency
shall require it to be replaced by bond
fully meeting the requirements of this law,
(hD. Whenever any railroad which was
paying dividends at the time its bonds We're
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
nookeettretary, treasurer, auditor, or other
Officer of any interstate railroad (any OF
whose bonds are on deposit under this law
who shall knowingly issue or permit 10 be
issued any false statement of the earnings,
expenses or condition of said railroad, shall
be considered guilty of felony, and be sub
ject to trial in any court in the United
States. and if found guilty shall be SEN
fenced to Imprisonment at hard labor for
term of not less than ten nor more than
twenty years, and may be fined in addition,
al the discretion OF the court, in any sum
not exceeding 500, 600.
The advantages of this portion OF the law,
which it is pity We are compelled TO limit TO
interstate roads, viii not he confined to the
banking system. but will give a protection to
the general public, which has long been needed,
and which Will tend 10 give far greater Stabil-
ity TO American railway Investments.
g. In lieu Of all other United States taxes
each bank shall pay in the usual manner
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.