The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-12-22
Provision Made for Maintaining the
Safety Fund at 3 Per Cent. Of the
Circulation Outstanding.
THE TAX ON STATE BANKS
CONDITIONS UNDER WHICH 1T MAY
BE REMITTED OR LEVIED.
Acceptance Of the New scheme by Ma
tional Banks Not Obligatory-Fea-
lures OF Discussion fn the House

WASHINGTON, Dec. 2.-After confer
ences between the Democratic members Of
the House committee on banking and cur
rency and with the approval of the Sec
retary of the Treasury Mr. Springer to-
day introduced a substitute for the Carlisle
currency bill 1t is substantially new
measure. although some of the sections of
the original measure are retained i'm the
new Ill. The new bin is arranged so as 10
show the new features I'm parenthesis. The
first section is as follows:
THAT $50 much) of all acts and parts
of acts as require. or authorize the deposit
of United States bonds 10 secure circulating
notes issued by national banking associa-
tions tor as require such associations 10
deposit or keep ON deposit, United States
bonds for any purpose, except as security
for public money! be, and the same here
undsr % this scD sa sneh oses
shall not contain the statement that they
are so secured"
Section is changed so that banks cannot
only deposit legal tenders TO secure circuia-
tlon, but also currency certificates issued
under Section 5ls3 OF the Revised Statutes
Of the United States).
Section is retained entire. except that
its provisions are restricted to apply TO
national banking associations taking out
circulation under this act"
Currency as the officer 70 designate the
place where notes are TO be redeemed
In Section provision is made for keeping
up the safety fund, and. in addition 10 the
terms of the original bill. IL is provided
that the collection Of said tax OF one-fourth
OF 1 per cent. for each half year shall be
resumed and continued until the said fund
is restored to an amount equal to per
cent. upon the total ctrculation outstand-
ing. All circulating notes OF failed national
banks not redeemed presentation TO the
Treasurer of the United States shall bear
interest at the rate Of per cent per an
mum from the date Of the suspension OF the
bank until thirty days after public notice
has been given that funds are on hand for
their redemption and said notes shall con-
stitute a first lien upon all moneys there
after received into the safety fund.
Section 6. allowing the Secretary OF the
Treasury to invest money in the safety
fund in bonds. is the same as In the orig
inal bill.
Section is entirely aew and takes the
place OF section which has been elimi-
mated. The new section follows:
THAT every national banking associa ton
heretofore organized and having bonds on
deposit to secure circulation may withdraw
such bonds upon the deposit or lawful
money of the United States, now provided
by law, and thereafter such association
may take out circulation under this act
and be entitled TO all the rights, privileges
and immunities herein conferred.
Section specifies that the portion OF the
national banking act to be repealed is
limited to so much of Section IL "As di-
rects the Secretary of the Treasury 90 re-
ceive deposits of gold and to issue certifi-
Gates thereon"
Section is substantially the same as
in the original bill.
Section 10, providing for State banks, 10
also the same as I'm the original bill. ex-
cept that in the restrictions on State
banks new provision is made that the
guaranty fund maintained by them may
include currency certificates issued under
Section 5lDs of the Revised Statutes" An
entire new provision is added to the State
banks. as follows:
Whenever the Secretary OF the Treas
ury and the Controller OF the Currency
shall be satisfied that any banking cor
9r Of any state e'y and When transacts % no other
than a banking business, as provided In
this section. has been Incorporated under
the laws OF the State in which IL rs To-
Gated, which laws require that the stock
holders shall be individually liable for the
redemption of its circulating notes 90 the
full extent OF their ownership OF stock,
and that such laws require that the cir
culating notes thereof shall constitute a
hrst Hen upon al, the assets OF .ne pank: s
to keep on deposit at all times, with an
Official of the State authorized by law to
fund as a,,e reouIred % IN the fourth paraeraph
OF this section, they shall issue TO said
bank a certificate to that effect. There
provided in this act. and thereafter the
tax OF 10 per cent. heretofore imposed by
law upon the circulation OF the notes OF
-L-T4 mm.H< -
lected upon the notes OF such bank unless
Il appears that said bank has issued cir
culatng notes in excess OF 20 per cent OF
its capital is impaired and has remained so
for thirty days. or that the bank has not
thorized by law to receive and hold the
same a guarantee fund, as required IN the
fourth paragraph Of this section, or that
notes In lawful money at par on demand
at its principal Office, or al one or more
of its branch offices, IL IL has branch ON
other than the bank issuing such notes I'm
violation OF the provisions OF this act
shall be liable to the tax OF 10 per cent.
upon the circulating notes OF State banks.
as now provided by law
Most of Section II is new, and il as fol-
lows. the new portions being In parenthe-
sis:
c'That any banking association organ
lied under the laws OF any State may de-
States legal tender notes and receive Ger.
tifica.es therefor In the manner provided
I'm Section 5ieS Of the Revised Statutes OF
the United States and) the Secretary OF
the Treasury may, under proper rules and
regulations 10 be established by him. per-
NIT such banks TO procure and use I'm the
preparation CT their notes the distinctive
paper used In printing Unites States Sc
curities; but no state bank shall print or
engrave its notes I'm simiiitude OF a United
States note or certificate or national bank
note"
DEBATE IN THE HOUSE.