The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1894-12-07
CURRENCY REFORM.
Cccretary Carlisle Sends His An
nual Report to Congress.
PLAN FOR 4 NEW BANkIsG SYSTEM
The Condition o: the National Finances
Total Estimated Expenditure and
Revenue for the Current
Fiscal Year.

WASHINGTON. Dec. 5.-The annua
report of the secretary of the treasur,
ca the state of the finances of the ma
ton was sent to congress Yesterday
The most important feature of Mr.. Car
isles report is his discussion of tn,
subject OF currency reform. in tn,
course of which the administration
plans OF 4 new system of currency ar,
set forth in detail
The secretary reviews the circum
stances leading up to the first $50, 900.
900 issue OF bonds as means of re
pienisiiinT the gold reserve. yielding
SIS, 66o.9i1. and increasing the free golC
in the treasury to Slo..ii5. S02. The
lowest point reached by the reserve
since the redemption OF specie pay
ments was on the eth day of August
1894. when. by reason of withdrawal
IN the redemption OF notes. it was re-
duced to So. 1873 After that it was
slowly replenis!,ed by voluntary ex-
changes OF gold coin for United States
notes by the banks and by small: re.
ceipts of gold III payment of dues to
the government until the 18th of No.
vember- 1874. when it reached the sum
OF S6l. S1S.3ITi
The secretary then says:
1 have prepared the outlines OF I plan which
in nv opinion. will relieve the government 20
a great extent from the burdens now imposed
upon it. secure within reasonable time Il safe
and elastic national and state b INK currency,
and result ultimately il tie permanent retire
ment of United States legal tender notes of
both classes. 1t is. in brief as follows:
First-Repeal all laws requiring or author
ling the lepOS,t of ITcitel So
curity for circulation.
Second-Pcrnlit national banks 10 issue notes
to an amount not exceeding - per centum of
their paid up and t:niInpliret cap;:ui. but re-
CURE each oGGE before Receiving notes to de-
post Il guarantee fund consisting of United
States legal teldC: notes. including treasury
notes of 1871 to The amount Of 30 per cent Of
the circulating notes outstanding to he main
tanned 1T all times, ana whenever Il bank re-
tires its circulation in whole Or NJ part. its
guarantee fund TO be returned 70 it in proDor-
ton to the amount OF notes retired.
Thiri-Retain the provision of the law max
ing stockholders individually liable and pro-
vide that the circulation notes shall constitute
first lien upon all the assets of the bank.
Fourth-InDose d tax OF Z of per centum
per annnm. payable SeIn-annual!y. upon the
average amount Of notes il circulation to de-
fray the expenses of printing notes. official
supervision. cancellation. etc.
Fifth-No national bank note to be OF less
tntl0 uC.larS. ana all notes OF
the same denomination to be uniform IL design:
but banks desiring to redeem their notes in
gold may have them made payable III that coin.
The secretary of the treasury to hive authority
to prepare md Keep hand ready for issue
upon application reserve of blank national
bank notes for each banking association having
circulation.
SiXth-Require each national banking assoc
citation to redeem it,; vt its own office or
at its own Official agencies to be designated
by it.
Seve1th-To provide {; safety fund for the
immediate REDEEM otioa o. the circulating notes
OF failed banks. impose a tax of (blanl) per
ceutum per annum upon the average circuia-
ton Of each bank until the fund amounts to 5
per cent. of the total circulation outstanding
Require each new BAN: and each bank taking
OCT additional circulation to deposit its proper
pro Ortion OF this fund before receiving notes.
When :, bank fails. its guarantee fund held on
deposit to be paid into the safety fund
and used il the redemption of its
notes. ana if this fund Shrll be impaired
by the redemption OF the notes of
failed national banks. and the immediately
available cash assets OF such banks are insult
fcient to establish the fund it shall at once be
made good by pro rata assessments upon the
other banks. according 70 the amounts OF their
outstanding circulation: but there shall be a
first lien upon all assets Of failed bank or
banks to reimburse the contributing banks.
The safety fund may be invested in outstand-
ing United States bonds. having the longest
time to r;.2. the bonds and the interest upon
them to De held as part OF the fund and Ole.
when necessary. to redeem notes OF failed
banks.
Eighth-Repc2l the provisions of the reor-
ganization and extension act of July T. 1892.
imposing limitations upon the reduction and
increase OF national bank circulation.
Ninth-Eepeal all provisions of the law re-
qui"ing banks to keep u reserve on account of
deposits.
Tenth-Thc secretary of the treasury may
in his discretion. use any surplus revenue OF
the United States il the redemption and re-
tirene1t Of United States legal tender notes
but such rcdcEptio2s shall not In the aggregate
exceed an amount equal to 40 per cent. of the
additional circulation taken out by national
and state banks under the system herein pro-
posed.
Eieycrth-Circula:;1g notes issued BY
banking corporation duly organized under the
laws OF any state. and which transacts no other
than banking, business, shall be exempt from
taxation under the laws OF the United States.
when it Is shown u the satisfaction of the sec
rotary OF the treasury and the comptroller of
tie cUrrcncy:
l. That such bank has at no time had out
standing its circulation notes in excess of -
per ceatuIn OF its paid UP and unimpaired capi-
tai.
e.. Tlat its stockholders are individually LA
bic for the redemption OF its circulating notes
to the full extent % their ownership Of stoca.
2. That the circulating notes constitute by law
o first lien upon all assets of the bank.
4. That the bank Ut all times keep the guar
an;ee fund in the United States legal tender
notes. including treasury notes of 1890. equal
to 80 per ceCtu::l Of It's outstanding circulating
notes: and.
.. That it has promptly redeemed its notes
on demand az its principal Office. 1T one
more of its branch Offices. If it has branches.
Tweltth-Tnc secretary OF the treasury may.
under proper rules and regulations 20 be estab-
lishcd b. him. permit state banks to procure
and use III the preparation of their notes and
distinctive paper used IL printing, United States
securities. but 70 state bank shall print or en-
crave its nctcS II SirniiitUGe OF United States
I,ote or certificate. or national bank notes.
Whatever r;ar be the objections to the issue
and circulate OF United states legal tender
%. per upon either constitutional or financial
ground. i HIS become 50 Incorporated into our
currency system and constitutes large
pa ri OF our active circulation TINT il could
be suddenly Withdrawn without produc-
ir- in the preset state OF our laws
operations OF the government well
as the business OF the people. and,
therefore. she plan now suggested provides for
its gradual retirement D.: the of surplus
revenues hereafter received. 4 process which
will probably req uire several year: for its COM
pletioa As these notes cannot be retired
until Other forms of currency to an equal
neither 4 forced contraction or expansion OF
tie circulation on account OF the change
- the plan suggested proposes to exempt
the government: CT the United States from all
Liability for the redemption OF national bank
no.es and place the sole responsibility upon
not less than 80 per centum upon the outstand-
ing circulation is regarded as a very proceI