The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1893-12-20
STATE BANK TAX.
Outline of the Sub -Committee's Prop osed
Bill for Ita Repeal,

Bill for It's Repeal.
| WASHINGTON, Dec. 14.-The sub.
committee on banking and currency ap-
pointed to consider legislation relating
to the repeal OF tho 10 per cent. tax
upon State bauk issues reported to the
committee today that it had adopted the
following as the provisional outline of
the general features of bill which It
proposed to draft: T.
''Section l. The tax of 10 per cent.
against State bank notes, &C., paid out
and used as currency, is repealed.
"Ssc. 2. Except as below provided,
no State bank notes. &c., shall be paid
out and used as currency outside of the
| State of their issue, except subject to q
penalty of 10 per cent. each time paid
out.
IN. B. 1t is not expected that this
penalty would be generally collected,
any more than is the tax imposed by oilr
present law; but rather that. as fast as
the prohibited notes cane into the hands
of responsible: parties outside Of the
State Of their issue, The penalty on pay.
Ing them out will cause them to be pro-
perlY returned for redemption and thus
effectively kept within the State of their
issue.
'Sec. 8. State bank notes may be
paid out and used as currency (outside
of the State oftheir issue) on compliance
with the following: 20 !.
"(A) Blank noies to be furnished and
issue to be registered by the Comptroller
of the Currency and to be of sharply
destructive design so as to show (D that
they are State bank notes; (2) sha State
of their issue and (3) under which Sec
ton of this act they are issued.
"(B) Banks issuing such notes to be
subject to inspection by the Comptol.
Ter of the Currency, similar to that now
provided for national banks, but Except
as to (C) below for purposes Of public
information only-the Comptroller hav.
ing no general supervision Of the affairs
of the banks.
"(C) Outstanding notes of each bank
to be limited to rs per cent. Of paid up
and uniupsired capital.
"(D)" state bank notes to be made
by States of issue first lien on all,assets
of issuing bank and a liability against
stockholders to an amount equal to
their stock in addition 10 it. ~. s
"(E) An assessment of one half per
cent. to bs paid on t,king out circula.
ton, and and also on all circulation out.
standing more Tiara year 80 long as
and whenever necess.ry (A) to keep
good aguarantee fund OF at leat 8 psr
cant. of outstanding circulation for ulti.
mate redemption of notes and (B) to
meet expenses not covered by penalty
receipts under section 2, above.
"Sec. 4. State bank notes may also
be paid out and used as currency (out-
side OF the State of their issue) on CON.
pliance with (A), (B), CO. and (D) Of
section 8 on deposit with the Comptrol.
Ter Gas security for ultimate redemption
of notes) of United States, State, .munici.
pal. &c., securities 10 amount of,par of
notes to be issued-the character Of
securities permitted to be strictly pre-
scribed in this bill.o
sit must be understood says the re.
port, that no menp.r of the sub.commit.
tee is personally committed to any OF the
details outlined above and that this sub.
committee is not ready to mako final
repot, but simply presents this state.
ment of the progress OF its work for the
information of the full committee and In
the hope to profitly the discussion by it Of
these or other points In this connection"