The times. [volume] (Richmond, Va.) 1890-1903, 1893-12-13

against state-bank notes used as cur
1 rcncy Is rel called.
Section 2. Except as below provided
no Stste-bank notes shall be used as
currency outside OF the State OF their
issue. except subject 10 a penalty Of 10
per cent each time paid out. ct is not
| earcc ted that this penalty would be gener-
! ally collected aiy more than Is the tax
/ imposed by our present law: but rather
that rs fast as the prohibited notes come
into the hands OF responsible parties out
| side OF the State of their issue. the pen
atty on paying them out will cause therh
TO 'oe promptly returned for redemption
and thus effectively kept within the state
OF their issue)
Section 3. State-bank notes may be paid
out and used az currency (outside OF me
I State OF their issue) on compliance WIN
the following:
a. Blank notes 10 be furnisheI an"
the issue to be registered by the comp
frolIer Of the Currency; and TO DE OF
sharply distinctive design go as 10 snow
% that they are State-bank notes, ~
tie State of their issue, ana 90 unlsr
which section of this act they are issued
OBJ Banks issuing such notes 10 be
subject to inspection by the ComptrOiler
Of the Currency; but the Comptroher 10
have no general supervision OF the aHalrs
Of the banks.
(C) Outstanding notes Of each bank
10 be limited to 70 per cent OF pald-up
and unimpair-ed capital.
3D. State-bank notes 10 be made by
States OF issue. "A first lien on all assets |
OF issuing bank. and a liability against |
stockholders TO an amount equal 10 their |
stock in addition 10 II.
OE) An assessment OF one-half or 1 |
per cent to be paid on taking out circula-
ton, and also on all circulation outstand- /
ing more than a year, so long as and |
whenever necessary, to keep n guarantee
fund OF at least 3 per cent OF outstand-
ing circulation for ultimate redemption
of notes, and to meet expenses.
Section T. State-bank notes may also be
paid out and used as currency (outside Of
the State Of their issue, on compliance
with the provisions Of section three, and
on deposit with the Comptroller las secu-
rity for ultimate redemption Of notes.
OF United States. State, and municipal Sc
curities 10 the amount OF par Of notes TO
he issued, the character Of securities rer-
nitted TO be strictly prescribed in this bill.
The essential principle of this plan, It
will be observed is that the tax Of 10
per cent. on the issues OF State banks is
repealed ont and out. so that any State
bank may issue notes under the provi-
sions specified by its State laws. provided
It complies with the other provisions Of
the plan.
II such notes are confined in their cir
culaton TO the State in which they are
issued, there will be no restriction what
ever upon them except what the laws Of
that State impose on them. II they go |
outside of that State they viii be subject
o a tax Of 10 per cent unless they have
been issued under the other provisions I'm
The act.
We believe all the restrictive measures
10 be repugnant TO the Constitution of |
The United States. but as we are in
hopeless minority on that point we shall
make no objection to It's passage on that
account, and that theoretical objection be-
Ing out Of the way. we think the bill as
outlined would be a most happy solution
Of the case. If we are permitted in Vir-
ginia to issue notes for use in Virginia
as the Legislature of Virginia may pro-
vide. we shall have achieved the great
object had in view. Mems credit will be
freed from the shackles now imposed on
It. This makes it of the utmost impor-
lance that the act to be passed on this
subject by our Legislature shall be con-
'idered most maturely
We have not yet examined MIR. Nicolrs
bill with the care that it deserves. but on
a superficial reading we think it con-
tains provisions that will not do. We
reserve what we have 10 say OF # for a
future article. Meanwhile we commend
this matter to the Legislature as the most
serious one on which it will have TO act
after the election Of senator is disposed
Of. II should receive its best elaboration,
10 be aided by the views Of our leading {
'ankers and business men whom the COM
nitfee should certainly summon before
i.