The herald., 1894-12-12


preliminary TO the comntencement oI
banking buciness, or for the security oi
circulating notes to be hereafter issued
Section . provides that in lieu Of the
deposit of bonds, each national banking
association shall be entitled to receive
circulation notes from the comptroller
TO the amount of (blankl per cent OF itt
paid-up, unimpaired capital. upon pay
ing to the treasurer lawful money to the
amount OF per cent Of such circulating
notes, and thereaiter tax az the rate ol
pne~Enlf OF per cont par Annum upon
the average amount Of its circulation fol
the year.
The per cent and the proceeds oi
the tax are to constitute guarantee
fund for the redemption OF notes OF in
solvent national banks, and the tax is
TO be collected until the fund amounts
to not leos than per cent of the entire
circulation iesued. This fund ia also TO
he in addition OF the nar cent redemp'
lion fund now provided by law.
Section three nrovides that in addition
10 the amount OF the circulating notes
provided for, each association shall
be entitled IT, receive from the
comptroller, circulating notes 10 the
amount OF % per cent OF it's paid up.
1nimpaired capital, upon paying to the
treasurer per cent of such additional
circulation, and that the tax OF one nall
Of per cent per annum on the average
amount OF the same outstanding, and an
additional tax at the rate OF 4 per CEN,
per nnnum upon the amount OF such
additional circulation outstanding for
the yesr, ali Of which Gums are to he part
Cf the guarantee fund.
Section is devoted TO the insolvency
ct nationel banking associations. and il
provided that whom snch insolvency
ehall he aacertained in The case of any
particular association. outstanding cir
culating notes shnil be redeemed by the
treasurer OF the United States out of the
guarantee fund, if that be sufficient, and
il not sufficient. out oi anv fund in the
tressnrv. After the loss, on account OF
any particular failure hns been made
good to the guarantee land, the United
State is first to be paid for sll advances
made
Section 7. Associations applying for
after the fret payments into
The guarantee fund ehall have been
made shsli receive circulating notes
from tho comptroller upon paying into
the fund eum bearing The ratio to the
circulation applied fer and allowed.
" hich 'he guarantee fund heare to the
total circulation outstanding.
Section nine provides tha: whenever
bank notea are issued to snv association
nnder this act. it shall be ths duty OF
he secretary Of the treasury to cancel
egal tender United States notes and
treasury notes TO the amount OF so per
.apf Cf tbo bnnlr ic uotal sn iSareG
Section 10. Any association may re-
ire its crculatioa or any part OF it at
NV time upon depositiUg with the
reasury an amount equal to the sum
iesired to he Withdrawn.
Section II repeals section OF the act
# July 12. 1892, and nls) the portion OF
he act OF June 90. 1874, which provides
hat the amount OF bonds on deposit for
circulation ehall not be redeemed below
SO, 900. and urovidee that any assoc!a
ION heretofore organized desiring 10
Withdraw its circula ing notes in whols
If in part may DO 30 under the provis.
Cns OF the act Of June % 1874 modi-
led as above indicated.
Sections 4, 5 nnd l. relate to certain
minor routine matters.
WHITE CROSS QUESTIONED.
Johneon OF Ohio asked Whites opinion
IF Secretary Carlisle's currency plan.
" Nhito anawered he did not think the
ecretary'e plan would give the elastic
currency it sought to secnTe. 1t COM
oeiIed banks to pnt Mp 80 cents every
,ime they issued rs cents
Walker OF Massa2 ausetts asked il tho
oll presented by White would secure a
iaie and uniform currency.
1t will have that tendency" said
Mr. White.
THAT !a not it," sajd MIR. Walker,
we DO not want to provide tendency
oward sale currency, but the actual
aiety."
81 am not omniacieut," suggested
dr. White. He added that il his judg-
nent the bill would secure an elastic
urrency.
Secretary Carlisle came in at this
'oint and WAS an Interested listener to
Ir. Whites answer to questions ae to
he want OF elasticity in Mir. Carlisle's
nrrencY bill.
Mr.. Warner OF New York asked what
should be imposed on state
Ianks.
Mr.. White eaid he would aubject state
'hL hc ~ bIS eEII6 iNLblHGlOlIH EH LlGEe
imposed on national banka.
Mr.. Cox OF Tennessee asked if this
7ould not do awav with the state banks.
Mr.. White eaid that it would. Hs
aid he believed i'll one uniform BANK
ng agstem not state eystems, there
eng Il siatea
MR.. CARLfuE's BILL.
Mr.. Carlisle then resumed his state
1ent. begun Yesterday. He presented
be bill he had prepared, en- bodyine his
Ian Of currency revision, and read to
le committee, commenting on it as he .
raceoded,
In the drst section, all acts relating to .
le deposit Of United States bonds to /
ecure circulating notes OF national
auks aTe repealed
The second tectlon provides for the
sulng OF circulating notes to national |
ank, equal to 70 per cent OF the paid-un
ID unlmpalre0 capital, upon depnsiIing
'gai tender notes with the Unted
ta'es. equal to 80 per cent OF the Cir
lla.lnG nntes applied for.
There circulating notes shall be in
enominations Of $40 and muitiples of
}, and shall be uniform in design.
oeCtIon three IeVle5 duty OF per
,nt for each hall year upon the average
OF bank 8 notes in circulation.
Section Jour provides for the mode Of
'demption and retirement of a bsnk'e
Icuation.
Section five creates q safety fund for
le prompt redemption of circulating
,tes of failed national banka. Each
ink sh8ll pay to the United States
easurer in lie months OF January a1d
lly il each year a tax + quarter per