The daily morning journal and courier., 1894-12-05
4 NEW HAVEN FIyASCIER.

Ihe Nisws or President Butler or th
 IradosIno 's Bank on National Rankin
 Creating a National Interest and Reeeiy
 ing Very Fiattering Endorsements.
 The views of President George A
 Butler of the National Tradesmen'
 bank. this city. on national banking
 matters. as expressed In various pub
 llshed papers written by him, are ex
 citing a wide interest and attention
 throughout the country. Recent! among the many requests received b!
 him from notable people requesting copy of the pamphlet published by hin containing his Practical Plan of Bank
 Ing and Currency" the same being g paper read by him before the American Banking association at their Chicago meeting in 1893, was one from MT. Car lisle. secretary of the United States treasury.
 l A recent issue of the New York Her. aid. in its Washington dispatches, had the following: .,. | "The secretary of the treasury re- ceived to-day a pamphlet setting forth | the views of George A. Butler, presi- | dent of the National Tradesmen's bank of New Haven. Conn.,, accompanied by the draft of a bill In which his views were carefully worked out. MT. But lers plan is of the same general char | acter as the Baltimore plan, though differing from 1t in some important re- spects. Many of the ideas 1t contains meet the approval of treasury officials, and the suggestions in 1t and in other plans recommended will be considered by the secretary in making up his rec | concentrations to congress"
 MT. Butler, in an elaborate address before the American Bankers associa- tion in 1880, and on many occasions since, has urged these amendments re- ferred to, but has stood alone in the matter all these years, but within a few months, in many directions the views he set forth in 1880 are becoming very popular In 1880 he predicted great disaster unless something of the kind he proposed was done. Said a well known New Haven man yesterday: One who reads his paper of 1880, in the light of events for the past two years, must feel that he forecast the. future with great accuracy, and that he com prehended the needs of the country. The outlines in the presidents mes sage are almost identical with the views expressed by MT. Butler. About the only difference is as regards the views of the secretary, which the pres ident approves, wherein the secretary proposes a reserve of 30 per cent, while MT. Butler proposes 25 per cent. From the outline of the president no other difference of any note is discernible"
 In 1880 MT. Butler proposed having the notes a first lien on the, assets of the bank. but on further considera tion deemed it not well nor necessary, as the security of his plan is most abundant.
 Following are in brief the amend ments proposed by MT. Butler in 1880, and many times since, especially in his address at Chicago in ,1SJ3
 First-Repeal the section requiring deposit of bonds to secure the notes
 Second-Issue to the banks notes, say to eighty per cent. of their capital.
 Third--Permit no notes of denomi- nation less than $1O, unless the smaller notes are fully covered by coin
 Fourth-The banks to keep a reserve in specie to the amount of 25 per cent. of the notes issued. ..
 Fifth-Place tax of one-half of 1 per cent. on the circulation as safety fund. out of which the notes. of any bankrupt bank may be paid in case the assets of the bank are not suffio oient to pay all the debts of the bank.
 Sixth-Remove the department of the comptroller of the currency to the city of New York; the 25 per cent. reserve fund to be kept there also.
 Seventh-It would be we'll to fix the amount of capital that bank should have if it is to issue notes. It should be sufficiently large to be a guarantee of the good faith of those engaged in it. Two hundred thousand dollars will not be unfair to any place desiring a bank.
 Eighth-Before issuing a certificate authorizing bank to begin operation the comptroller of the currency should make careful examination as to the means and character of all those pro- posing to start bank. The following is the text of Mr. Buffers proposed amendments.
 AMENDMENT TO THE NATIONAL BANKING
 F1rst-All sections, and parts of sec- tions, relating to the deposit of United states bonds to secure the circulation or the banks, and in any way relating to such bonds, are hereby rebealed,
 Second-Banks organized under the national banking act, or that may he organized under said act, may receive from the comptroller of the currency circulating notes to the amount of 75 per cent. of their paid up and unim- paired capital. /
 Third-Notes of the denomina tion of less than $10 are hereby prohibited.
 Fourth-Each bank shall keep a re- serve in specie, equal to 25 Der cent. Of it's average outstanding circula- tion. -=' -.~ -
 Fifth-On the second Tuesday of January, and July of each year the banks shall pay to the treasurer of the United States tax4of per cent. upon the average circulation for the six