The state chronicle., 1892-12-17
THE ALABAMA STATE BANK
DIiH

less Dc TtdCuCu III cplIlC " oiiIooo
TO the State and to the road.
THE ALABAMA STATE BANK
PLAN.
In recent number of The CHRON-
IcLE we published the Georgia plan
of State bank. This morning we
republish from the Atlanta Journal the |
Alabama plan. As it is probable that
the ten per cent tax on State banks
will be repealed by the next Congress,
these plans are interesting as showing |
the character Of the State banking IN
stitutions that would likely obtain.
The Alabama plan was drafted by
State Senator Miner, of Birmingham,
who is regarded as authority on finan-
cial questions. It is explained by
Senator Miner as follows:
"NIy plan is to issue bank notes,
which will be as current in New York
a. Alabama or anywhere else in the
country. Now, to illustrate my idea
on the subject, we will take bank OF
100000 capital, and to which S3 J0,-
600 circulating notes are to be issued.
Under my system | would make sub
scriotlons in the capital stock as fol-
low. one-third, or 500, 900, in specie,
the second third, or 100000, in State
~ ~ III
last subscr p1ion to be stock notes OF
the subscribers, bearing interest at
per cent. per annum, the stock to
which this one.third would be entitled
20 he held as collateral for payment OF
said preferred notes, or If party pre-
fers paying this third in money, h can
do so and get his stock Immediately.
The 100000 Of species shall be held
: and used only TO redeem the currency.
$ Il propose to establish redemption
agencies in New York, Louisville,
. New Orleans, and at the bank coun-
ters in Alabama. To each Of these
agencies shall be sent at least 10 per
! cent and not more than 20 per cent
j to redeem the notes Of such banks in
;, specie when presented, as required by
the constitution of Alabama, the said
agency to report monthly to the bank
examiner of Alabama, and when any
2. agency has redeemed any note of the
If bank the amount of the specie issued
Y shall be replaced as early as practical
. bic. Now, in case of bank failing OF
defaulting in redemption of their notes
q for sixty days, it shall be the duty Of
le the bank examiner to require Of eacf
at bank established in the state of Ala
5. bama during this act to contribute
!. sufficient tVback the bank up. | pro
pose to require ey cry chartered banl
'e under this act to leave per cent ofth
TO currency issued to be deposited in tn,
# vaults of the state, subject to the cal
n of the state examiner, to be used to ali
a failing banks of the state, the sai
contribution to be charged agains
failing banks, but the note Of redemp-
IN tion shall be the first charge agains
p the assets of any bank.
Sc "Suppose a bank should fail .Aha
Lt .lJ.n s,u ,'er euo- ha-
: 1u.clS aha entirely and not have
dollars worth of assets left, whicl
~ would hardly occur, and if the banl
as examiner has done his duty under th
lg law it would not occur, there will b
no first 100000 of specie under his cor
a. troll to liquidate the take up notes {
the bank at the expiration of its char
III ter-say twenty years.
on "This amount he can invest in stat
al bonds bearing per cent interest pay
an able semi annually, which would be ;
49, the end Of twenty years, added to Il
y principal, 100000 There will al.
ne be in the beginning 100000 depositt
lat in the state treasury in Alabama
out state bonds which compounded at
all per cent, as is now the case with {
&C United States bonds, will amour
principal and interest, to S200,G(
more.
We have here $4O0, 900 to take
100000 of currency circulation,
ted $l.33 to take up s. in currency. T
the reas III OF this apparant anomaly is h
hat the notes through all these years be
and interest, and persons throughout t
United States knowing the absolr
nP' arrangement for the redemption
mp. these notes will not ask for their
the demption and they will pass on eq,
nto terms with present national ba
oro notes. Il would be the utmost folly
have system of bank notes that
~" would continually be redeeming,"
the