The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1894-12-15
TWO PLANS.
synopses OF Bank Bills Proposed by Editor
white and Secretary Carlisle.

rencv eommitte ON the question OF a
generalization of the currency laws
WINS resumed in the room of the ways
and means committee, but did not
move Off very promptly
II was expected that Secretary Car
Isle would present his currency bill
and continue his statement OF Mon
day. but as the secretary was late in
arriving, Mr.. White, editor OF the
New York Evening Post, opened the
hearing. Mr.. Johnson asked Mr..
White 5 opinion on Secretary Car
isles currency plan. Mr.. White an
swered that he did not think the sec
retary's plan would give the elastic
currency il sought 10 secure. 1t com
PEELED banks To put up thirty cents
every time they issued seventy-hve
cents.
AT the close of Mr.. Whites state
ment he submitted his bill on the lines
of the Baltimore plan. Mr. Homer
stated that the committee OF national
bankers had not yet formulated their
bill.
The following is n synopsis Of the
bill presented TO the banking and cur
rency COMMITTEES by Horace White:
The frst section provides that no bank
/ Ing association shall 10 required % de-
posit United states bonds either rs prcliml-
nary TO the commencement OF tanliing BUSH
ner, OF for the security OF circulating notes 20
be hereafter issued.
section provides that In lieu OF tne deroS-
its OF bonds each national bank association
: shall be entitled 20 receive circulating notes
from the comptroller 10 the amount or 49,
por ceat OF It's paid-up, unimpaired cap
ital, upon paying 10 the treasurer law
ful money 20 tho amount OF FER
cenL OF such circulating notes. ana tncre-
after q tax 10 the rate OF one-half OF /
per cent per nnnum upon tho average amount
OF It's circulation FOR the year, to constitute
guarantee fund for tho redemption OF notes OF
insolyont national banks, and the lax y 70 DO
collected until the fund amounts TO not less
than per cent OF the entire circulation issued.
This fund IS also TO bc Ia addition 10 the per
cent. redemption fund now provided by Law.
Section provides that In addition 70 the
amount of the circulating notes provided for
each association shall be entitled 20 re-
oeiyc from the comptroller circulating notes
10 the amount or % por cent OF It's
paid-up unlmpalrcd capital upon paying
TO tho treasurer . per cent. OF such addition
al circulation. and that tho tax OF one
half Of per cent per annum upon the average
amount OF the same outstanding and al addi-
tional tax 40 the rate OF per cent. per anuum
upon tho amount Of such additional circula-
tion outstanding FOR the year, all % which
sums are TO ne part OF tho guaranty fund.
section Is devoted 70 the insolvency OF
national banking associations, and IL ~
provided that whom such Insolvency shall
be escertained In the case OF my par
ticuar association It's outstanding circu-
latiug notes shall be redeemed by The
treasurer of the United States out OF the
guaranty fund n that be sunicient, aud n not
suniccnt out o. any fund In the treasury.
After the loss on the account OF any particular
failure has been made good TO tho guaranty
fund the United States Is first To be paid for
all advances made
Sec 2, Associations applying for circulation
after tho frat payments into the guaranty
fund shall have been made may recolYe crcu-
lating notes from the comptroller upon paying
into the fund u bearing ratio TO the cir
cuintlon applied for and allowed which tho
guaranty fund bears to the total circulation
outstanding
section provides that whencycr bank notes
are issued 20 any association under this act 10
shall be the duty az tho secretary OF the treas
ury TO cancel legal tender United States notes
and tralsury notes 20 the amount OF so per
cent on tho bank notes SO issued
Section 10 provides that any association may
retire us circulation or any part Of IL nt any
time upon dcpositlng with the treasurer an
amount equal 70 the sum desired TO be with
drawn
Section - repoals section Of the act OF July
III ls'2 and also the portion Of the act OF June
20 1874 which provides that the amount OF
bonds on deposit for circulation shall not DO
reduced below $50 100 and provides that any
association heretofore organized dcsrlns 10
Withdraw Us circulating notes In whole or ia
part may do so under the provisions OF tho
net 81 June 20, 1874, modified as above indi-
Gated.
At the conclusion OF Mr. Whites re-
marks Secretary Carlisle appeared aud
presented "a draft OF his proposed bill.
synopsis Is as follows:
Ia tho FIRST section all acts regulating the de-
roslt OF United States bonds % secure circu-
mting notes % national banks ara repealed
The second section provides Tor the issuing
Of circulating note. 70 national bank equal
90 70 per cent. % the paid-up and unimpaired
eapitnL upon depositing legal tender notes
with the United States treasurer equal TO 30
per cent Of Tho circuliaing notes applied for
These circulating notes shall DO Ga den0ininl-
Hons Of 10 aud multiples OF ten, and shall be
Uniform M design.
section lcyies q duty OF u per cont FOR each
hnlf year upon tho average amount or BANKS
notes ia circulation.
section provides for tho mode OF rodemp-
tlon and retirement Ok q banks ejaculation.
section creates IA safety rand for tho
prompt redemption OF circulating notes OF
failed national hunks Each bank shall nav to
thc United Statrs treasurer in the months
OF January ard July Ia each year tax Of
y pr cent Tor each half-ycar upou the ay-
crnge amount % - circulating notes outstand-
Ing until said fund amounts TO 8 per cent or
the total amount of national bank notes out
standing. aud thereafter said tax shall cease
bank retiring or reducing It's circulation
shall be entitled % withdraw any part Of this
fund. The mode 90 procedure Ina case OF a
banhs failure Is Ostlined
session allows the secretary OF the treas
ury - Invest money belonging 10 the safety
fuuo Ia United States bonds.
Section provides that sa July T. 1895 M
uouni banks now having bonds on deposit may
withdraw them and substitute the 80 por cent
guarantee fund
Svctigp rcpcals previous acts conflicting
with thu measure
section provides that the secretary Of tho
treasury may. Ia his discretion redeem ana
rotire United states Legal tender notes: that
no United states or treasury notes authorized
bv tho act OF July !, 1897 u denomination q
less than SO shail be- Issued
Section 40 states thar banks duly Organized
under tho laws OF any state which transact no