The Breckenridge news. (Cloverport, Ky.) 1876-1955, 1894-12-12
THE PLAN OF RELIEF.
Concise Outline of the Proposed
New Financial system, Based
Upon the "BaItimore
plangs

IN view Oh tDe foregoing cOnSldera-
tons and many others that might be
urged in favor of a reorganization and
reformation Of our paper currency sys-
tenn, have prepared the outlines of a
plan which, in my opinion, will relieve
the Government to an extent from the
burdens now imposed upon it, secure
within reasonable time safe and elias
tic National and State bank currency,
and result ultimately in the permanent
retirement of United States legal-tender
notes Of both classes.
1t is, in brief, as follows:
First-Repeal all laws requiring or
authorizing the deposit Of United States
bonds as security for circulation.
Second-Permit national banks TO issue
notes to an amount not exceeding 20
per centum of their paid-up and unim-
paired capital, but require each bank
before receiving notes to deposit guar
antee fund, consisting of United States
legal tender notes, including Treasury
notes Of 1890, to the amount of 80 per
centum upon the circulating notes out
standing, to be maintained at all times,
and whenever bank retires its circula-
lion, in whole or in part, its guarantee
fund be returned to it in proportion to
the amount of notes retired
Third-Retain the provision of the
law making stockholders individually
liable, and provide that the circulation
notes shall constitute first lien upon all
the assets OF the bank.
Fourtb-Impose tax Of one-half OF l
per centum per annum, payable semi
annually, upon the average amount of
notes in circulation to defray the ex-
penses of printing notes, official super
vision, cancellation, etc.
Fifth-No national bank note to be of
less denomination than ten dollars, and
all notes of the same denomination to be
uniform in design, but banks desiring to
redeem their notes in gold may have
them payableIn that coin. The Secre-
tary OF the Treasury to have authority to
prepare and keep on hand ready for issue
upon application reserve OF blank ma
tional bank notes for each banking as
ISOLATION having circulation.
Sixth-Require each national banking
association to redeem its notes at its own
Office, or at its own official agencies to
be designated by it.
Seventh-To provide safety fund for
the immediate redemption of the circulat-
ing notes Of failed banks, impose a tax
OF = per centum per annum upon the
average circulation of each bank until
the fund amounts to per cent, of the
total circulation outstanding. Require
each new bank and each bank taking
out additional circulation, to deposit its
proper proportion Of this fund before re-
ceiving notes. When bank fails, its
guarantee fund held on deposit be paid
into the safety fund and used in the re-
demption Of its notes, and if this fund
shall be impaired by the redemption OF
the notes OF failed national banks, and
the immediate available cash assets of
such banks are insufficient to re-establish
the fund, it shall at once be made good
by pro-rata assessments upon the other
banks, according to the amounts OF their
outstanding circulation but there shall
be first lien upon all the assets of failed
banks to reimburse the contributing
banks. The safety fund may be invested
in outstanding United States bonds hav-
ing the longest time to run, the bonds
and the interest upon them to be held
as part OF the fund and sold when neces-
sary to redeem notes of failed banks
Eighth-Repeal the provisions of the
reorganization and extension act OF July
-, 1882, imposing limitations upon the
reduction and increase OF national bank
circulation.
Ninth--Repeal all provisions of the
law requiring banks to keep reserve
on account OF deposits.
Tenth-The Secretary OF the Treasury
may, in his discretion, use any surplus
revenue OF the United States in the re-
demption and retirement Of United
States legal tender notes, but such re-
demptions shall not in the aggregate
exceed an amount equal to 20 per cent.
OF the additional circulation taken out
by national and State banks under the
system herein proposed.
Notwithstanding notes issued by
banking corporation, duly organized
under the laws OF any State, and which
transacts no other than banking bust
ness, shall be exempt from taxation
under the- laws Of the United States
when II is shown to the satisfaction OF
the Secretary OF the Treasury and the
Controller of the Currency ~ That such
bank has at no time had outstanding its
circulating notes in excess OF rs per
eentum Of its paid up and unimpaired
capital. (2) That its stockholders are
Individually liable for the redemption
Of its circulating notes TO the full extent
OF their ownership OF stock. (3) That