Daily Kennebec journal., 1894-11-17
The Baltimore Plan.

Along with the general supposition that
the President is writing message recon-.
mending certain changes pertaining to
the currency is the belief that his sugges-
tions will be in line with what is known
as the Baltimore plan. This as formu-
lated in bill to be presented to Con-
gress is as follows:
Sec. /. The provision of the national
banking act requiring the deposit of bonds
to secure circulating notes hereafter issued
shall be repealed.
Sec. 2. Allow the banks to issue circu-
lating notes to the amount of 30 per cent.
of their paid up, unimpaired capital, sub
ject to a tax of one-half of one per cent.
per annum upon the average amount OF
circulation outstanding for the year; and
an additional circulation of 25 per cent. of
their paid up, unimpaired capital, subject
both to the tax of one-half Of one per cent.
per annum and to an additional heavy tax
per annum upon the average amount of
such circulation outstanding for the year
said additional 25 per cent. to be known
as emergency circulation.
Sec. 3. The tax of one-half of one per
cent. per annum upon the average amount
of circulation outstanding shall be paid
to the treasurer of the United States as a
means of revenue, out Of which the ex-
penses of the office of the controller Of the
currency, the printingof circulating notes,
etc, shall be,defrayed,
The excesssover one half of one per cent
of the tax imposed upon the emergency
circulation shall be paid into the guar
antee fund" referred to in section five.
Sec. 4. The banks issuing circulation
shall deposit and maintain with the treas
urer of the United States redemption
fund" equal to per cent. of their average
outstanding circulation, as provided for
under the existing law.
Sec. 5. The redemption of the notes
of all banks solvent or insOlvent, to be
made as provided for by the existing law.
Sec. 6. Create a guarantee fund, I"
through the deposit by each bank of two
per cent. upon the amount of circulation
received the first year. Thereafter impose
a tax of one half Of one per cent. upon the
average amount of outstanding circnla-
tion, the same to bepaid into this Alnd
until it shall equal five per cent. of tho en-
tire circulation outstanding, when thescol-
lection of such tax shall be suspended to
be resumed whenever the controller of the
currency shall deem it necessary. .s
The notes of insolvent banks shall be
redeemed by the treasurer of the United
States out of the guarantee fund, if it
shall be sufficient, and, If not sufficient
then out of any money in the treasury the
same to be reimbursed to the treasury out
of the guarantee fund when replenished
either from the assets of the failed banks
or from the tax aforesaid.
National banking associations organized
after this plan shall have gone into opera
tion may receive circulation from the con-
troller of the currency upon paying into
the guarantee fund a sum bearing the
ratio to the circulation applied for and al
lowed that the guarantee fund bears to the
total circulation outstanding and to be
subject to the tax of one-half of one per
cent. per annum as called for by the treas
urer of the United States for the creation
and maintenance of this fund
No association or individual shall have
any claim upon any part of the money in
said guarantee fund except for the redemp-
ton of the circulating notes of any insol-
vent national banking association. Any
surplus or residue of said guarantee fund
which may be hereafter ascertained or de-
termined by law shall inure to the benefit
of the United States.
Sec. Z. The government shall have a
prior lien upon the assets of each failed
bank and upon the liability of sharehold-
ers for the purpose of restoring the amount
withdrawn from the guarantee fund for
the redemption of its circulation not to ex-
ceed, however the amount of the failed
banks outstanding circulation after de-
Quoting the sum to its credit in the re-
demption fund (section FOUR already in
the hands of the treasurer of the United
States.
Sec. g. Circulation can be retired by a
bank at any time upon depositing with
the treasurer of the United States lawful
money in amount equal to the sum de-
sired to be withdrawn and Immediately
upon such deposit the tax indicated in
sections 2, 8 and 6 shall cease upon the cir
culation so retired.
Sec. 9. In the event of the winding up
of the business of a bank by reason of in
solvency or otherwise the treasurer of the
United States with the concurrence Of the
controller of the currency may on the
ami ication of the 1irp<.tnrS 0r Of the