The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1894-12-26
springer's Substitute.
Outlines of HIS Scheme For Re-
forming The Banking System.

WASHINGTON, Dec. 21.-Mr. Sprin.
ger of Illinois, at late hour this
afternoon, laid before the House a
substitute for the pending currency
bill 1t consists of the amendments
which have been agreed upon by the
Democratic members Of the com.
mittee, others that were suggested
by Secretary Carlisle, the author of
the bill that has been under consi-
deratlon all week, as well as certain
features Of the Carlisle bill, which it
has been deemed advisable to retain.
After laying the substitute before the
House, Mr.. Springer briefly explain
ed the important changes made in the
Carlisle bill, and their effect as fol-
lows:
First-Permitting the deposit Of
currency certificates issued under
section 5, 1913 of the Revised Statutes,
to secure circulation, as we'll as the
deposit of legal tender notes actually
held in the Treasury, and the effect
of depositing certificates is therefore
the same precisely as to require the
deposit of notes
Second-So amending the present
law as to permit State banks to
deposit legal tender notes and pro.
cure these currency certificates in
the same manner that. National banks
are permitted to do 80
Third-Dispensing with the provi.
sion which authorizes an assess
ment upon the national banks to
replenish the safety fund for the
redemption of the notes of failed
banks and, in place Of this provision,
insert one providing that the collec-
ton of one-fourth of cent tax for
each half year shall be resumed when
the safety fund is impaired and con-
tinued until the safety fund is re-
stored
Fourth-Autborizing the comp
troIler Of the currency, instead of the
banks themselves, to designate the
agencies at which national bank
notes shall be redeemed.
The effect of this will be to secure
the redemption not only at the Office
of the bank, but other place accesibles
to note holders.
Fifth--Dispense with the provision
compelling existing national banks to
withdraw their bonds not on deposit,
and take out circulation under the
new system, aud in lieu of that pro-
vision insert one permitting the
banks to withdraw their bonds, if
they see proper to do so, by deposit
ing lawful money as now provided by
law and then to take out circulation
under the new system if they choose
to do So
Sixth--Providing that the notes of
failed national banks which are not
redeemed on demand, at the office of
the Treasurer of the Cnited States or
an assistant Treasurer of the United
States, shall bear interest at the rate
Of 6 per cent. per annum from the
date of the suspension of the bank
until thirty days after public notice
has been given that funds are on
hand for their redemption. This
imposes no obligation en- the part Of
the United States to use its own
finds for the redemptions, as the
safety fund is in the hands of the
Treasurer and he will redeem notes
out of that fund
1t is not necessary to repeal the re-
pealing clause in section I, as recon
structed, because section l, as pro-
posed to be amended, repeals all bond
requirements as to banks taking out
circulation under the proposed bill:
nor is it necessary IN section to set
out how the notes Of existing banks
shall be redeemed when lawful money
has been deposited, because the pre-
sent law provides for all that
In regard to the provision making
the notes of failed banks bear inter
est, it is absolutely necessary to re-
quire their presentation at some.place
before they begin to bear interest,
otherwise it is impossible to frame a
clause which would not make all of
the notes bear interest from the date
of suspension, even though there
might be funds on hand to pay them.
There are ten sub-treasuries in the
United States, and there will be no
difficulty in presenting the notes, if
the holder of them has any doubt
about their immediate redemption and
thus make them bear interest.
The building and loan associations
of the State of Pennsylvania seem to
be pretty solid Their estimated