New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-12-18

VIII receive the cooperation OF the Committee on
Rules and be carried out. If the House agrees TO
adopt ii.
MIR. SPRINGER'S EFFORT
The report of the majority OF the committee.
which Chairman Springer submitted this afternoon.
is as unique legislative document he is as
legislator. Nobody. after reading it. will feel
surprise because the majority did not to "all
the reasoning In the report" The various pro-
visions OF the measure rected In detail and
attempt Ia made to explain what each will accom-
plish. in the opinion of the Sangamon statesman II
the bill shall become law. A far more luminous
exposition of the scope and meaning OF the meas
ure, and what the Secretary Of the Treasury hopes
II will accomplish will be found in the report Of
his remarks before the committee.
The committee. Mr.. Springer states, OF the
opinion that a security to the full amount OF the
circulating notes issued is longer necessary for
the safety of the notes The bill. the passage Of
which is recommended by the committee. does not
require the deposit OF bonds the United States
OF other interest bearing obligation. but in lieu
of such security provides:
First-a guarantee fund consisting OF Treasury
notes. including the issued under the act Of
Congress approved July IA. 1890. equal to 80 per
cent of the circulating notes applied for.
Second-A safety fund which will amount when
1t reaches its maximum to per cent upon the total
amount of National bank notes outstanding
Third-First lien upon all the assets of the asso-
citation issuing the
In case the guarantee and safety funds and the
assets of the failed bank are not sufficient to
deem the notes of such bank pro rata assess
ment upon all the other banking associations. ac-
cordng to the amount of their outstanding circua
ton. is to be made by the Treasury Department.
and the banks assessed shall have a first lien
upon the Of each failed bank for the amount
properly chargeable such banN on account of the
redemption of its circulation. II Is believed by the
| committee that the funds thus provided will he
amply sufficient the notes Of failed banks
According to the report OF the Controller OF the
Currency for the year ending october 81 1894 says Mr.
Springer 1t appears that there were at the close of
| that year in operation in the United States 1856
National banks. with authorized capital stock of
s672 67l, So The bill reported limits the amount OF
circulating notes which any bank may issue TO 10
per of its capital stock II under this bill the
National banks should take out the entire circuia-
ton which they would be entitled the aggregate
! OF circulating notes would be $Gcc,e0 The . per
cent safety fund upon this circulation would
amount TO So 02e.Ooo The guarantee fund required
| by the bill upon this circulation would amount TO
si51 10000 The resources OF all the banks at that
time amounted Si72.9a2l55. 1t thus appears that
upon a possible circulation of tJ0iOtoop there would
| be a present available security Of $5ioO"o guaran-
tee and SIS 10000 OF safety funds, and an ultimate
| fund upon which assessments could be made 10 the
amount of 6 i13 922 055. During the great financial
crisis of 1898 l5s National banks suspended payment
having a capital stock Of 100000 II the National
banks in the United States had taken out the full
amour; OF circulation To when they were entitled
at that time under the proposed bill. If had been
| in force at that time, and II the suspended banks
had taken out their maximum circulation. the notes
! Of such banks would have amounted TO S2.1o2""
! Thirty per cent OF that amount would have been
secured by the deposit OF legal-tender notes Ihis
would have left sS.9SiOo OF circulating notes for
payment Of the safety fund. which as before stated
would have amounted to $25 020co
These facts demonstrate conclus!vely. says Nj.
! Springer that II the proposed bill had been IN
force during the crisis OF 1885, II all the banks had
| therefore taken out OF circulation 20 the maximum
amount allowed 10y law. and II the failed banks
| had also taken their maximum circulation. the
| guarantee and safety funds would have been ample
! for the PAYNE, Of the entire circulation OF the
| outstanding notes. and would have left surplus OF
aver 81 90 900 sun in the safety fund. without the
| necessity even In great crisis OF that Kind OF
| nlkng any assessment on the resources OF me
| Other National banks. But Of the Us banks when
| suspended payment. elghysiX banks with n 'ap''"'
| stock OF SIS $500. resumed business "thin me
| year and were able pay all their liabilities IN
| Guiding their circulating notes only iiXV-hNe
banks with a capital stock OF Slos35.pD passed into
| the hands OF receivers. II assume that the
| notes of the slxty-fve banks only were TO be paid
on, Of the safety and guarantee FUNDS. mere "oui
| sye been only $x2OVo OF notes outstanding " all
| OF the banks which passed into the hands OF re-
| coivor. had taken ont notes to the maximum
! amour. allowed. The 30 per cont guarantee iuhi
| would have paid 81 10000 Of these notes "h'o'
would have left only $4,000 to have been pal out
of the per cent safety fund But al of the lali''
hanks had available assets. which would nave Deei'
| apploi TO the payment Of their outstanding notes.
rbelr unavailable assets which would have realized
something In the end. and the amount which "oui
be received on account OF the personal lab'hF oil
the Stockholders would further lessen the amount
Into, v,ould have TO be paid OF the safety fund
opinion that. should the proposed bill become
,av the notes which would be issued under IT would
be absolutely safe under any ana all pose'oe ous' -
ness conditions.
| Disc,s.ing Section 9 OF the bill, which PROVIDES
FOR the retirement OF the legal tenders the reasons
for providing for this retirement are set o'' :"
length. a.,
Tho -eport contends that the provisions OF inc
hill relating TO state banks Is observed 1t VII
.brov around the State bank circulation the mos
essential safeguards which are provided Tor tl'
X.,onal currency II they are not observed tne y
nor cent tax will be imposed and the notes VIII Dc
suppressed
VIEWS OF THE MINORITY.
rho ,ows Of the minority Of the committee were
uhrn,t,ed 10 the House late this afternoon pS
Mr. Walker OF Massachusetts. who drew up ,i''
anor enbodying them. Considering the iact una
,ha document was prepared in the space OF IL"
hours 1t is an exceedingly strong one anu "
,oo, ~ the importance OF the subject ana 'h'
| ,,i,ersal interest excited by the proposeh ies'Sia
,ior I, deserves to be reproduced here:
The minority Of the commtee , on va Ia' si "T,
crrrencv 10 which referee bilI 40 go, az
amend he laws relating TO NatonaI Dahn''is a.
sociations TO exempt the notes OF aIa' AID 1"' f."
rom taxaton upon certain conditions, anu ana ao
LII nurnoses" having had the same unnnr Con i
slderaton most heartily and enthusiaS,.i i, ~"
- Democratic majority OF the COMMITTEE III ,,I
nudiating bin H. r.. No. Slis. known as 'h , ~ 'iI IT,
XIII We find the Democratic majority "S''e Wv
|, foownH words: ,,., .h,oh confront tn
Treasury Department have consralhed tie Il'''
30 ~ the ma iority OF the committee WfhiF ~
| agreeing to all the provisions OF me PM n non
aIi tho Reasoning employed In this report 10 con-
en- rcuorting the measure to the HOUSE ioi IL, :,
sheraton each reservng to hiinseH nv rrnner
o~or such amendments as he may deem piopIIl
III