The Big Stone Gap post. [volume] (Big Stone Gap, Wise County, Va.) 1892-1928, 1894-10-18
B3YTERs CONVENTION.
con,-o,le,- Eckeis Endorses ahe Pros
ont National Sank System.
!, ,>-,st az :: proposed Amendment 70 the
,rl.gocal l,aniSiog sct Tor the ,?Hteosc
v.stni,Its..ics % safe and Eias-
tic Currency Submitted s.

rs1r,s.oGE, oct. 12.-The second day
* Inc American Bankers convention
o,ened Thursday with u much larger
aoit,ndaaco than Wednesday, Con-
.roIlc,. Of the United States Ecl<els was
Introduced by President White. Ne
nlYing. Mr., Ecicls said;
the natioaa} .ank system has been sue
cos.frl systeIa. Ii s1:-3 done nac1 10 uDhft
,r,ts simplify the business transactions OF tho
s,orI1. 1t has Sivkn . currency which al least
r.. scea .oaa4 81 she fact thAs cvory
M witch has oaen issrei Ivy is is of
she value rni9h, Is purpocsa 10 carry.
Wheeler l.G.t system, roy that changes
ure co,.lirG KpoA the lscopie, VIII meet the re-
cu.re,nen,s II Gajly TRANSACTIONS N the matter
a. tns.issre Of the currency. IS . question
which is open 70 discussion. Whether or not
. syste,n cf ,ss;tr. currcrcY founGcd upon the
d,.,oSit Of securities has mat cthcr requisite
y 6pick RESPONSE 30 TIE rceos OF tso peopc IL
business as wc,l * safety 20 Tie holder is
question vhich cun tie discussed with profit at
such y gathering IS tA's.
Mr.. Charles c. Homer, president Of
the Second National bank, Of Balti-
more. after y Few explanatory remarks,
read draft OF ; g proposed amend
merts to the National banking act for
the purpose OF establishing @ SAFE and
elastic National currency. That
provision OF the National bank
ing act requiring the deposit of
bonds TO secure circulating notes is
provided for. Banks are to te allowed to
issue circulating notes to the amount Of
one-half their paid-up unimpa ircd cap
ital, subject 70 tax OF = per cent. per
annum upon the average amount of.cir-
culation outstanding for one year, and
an additional circulation Of 20 per
cent Of paid up unimpaired capital,
subject to the = per cent. tax and an
additional heavy tax upon the average
amount Of circulation outstanding for
the year, the additional 20 per cent
20 DC known IS an emergency
circulation The tax OF y per cent. up
on the average yearly circulation g to
be paid TO the United States treasury
as a means Of revenue and the excess
over that tax imposed upon the
emergency circulation is to DC paid
into a guarantee fund 4 redemption
fund Is also created, equal to )
Der cent. OF the banks outstand-
ing average circulation as pro-
vided by existing law. The guarantee
fund, in addition to the a per cent
tax mentioned, is to consist Of " per
cent. upon the amount OF circulation
received by each bank during the first
year. When Tie 4 per cent tax shall
equal per cent. OF the entire out
standing circulation. It's collection
Shall be suspended, TO &c resumed by
the controller OF the currency when
necessary. The guarantee fund IS to
be used in rcdeeming the notes OF IN
solvent banks. The government is TO
have prior lien upon the assets OF
each failed bank, and the liabilities OF
shareholders 10 restore the amount
withdrawn from the guarantee fund.
Mr.. Homer said that this plan was
not offered as u complcto amendment
to the present Law, but simply as an
outline OF desired legislation. 1t was
not the intention TO disturb the exist
ING bank circulation if it should be
deemed to he TO the bestinterest OF the
government and the banks to continue
it for the present. Currency, he
claimed, must bc supplied 10y the
banks, and not by the govern
ment. The latter noted only the
condition Of trade by the rise and
fal Of its revenue receipts, while
the banks were tho arteries OF com
merce, feeling instantly the changes or
commercial activity and Intimately &c
euainte( With its volume and require
1nents. Ey allowing the banks TO issue
circulation to the extent Of so per cent.
OF thcir paid up rnimpaire9 capital,
ansple provisoh was made. he said, for
H. very FULLEST requirements OF the
tra lie. The issue OF an additional %
per cent. to be known as emergency
circulation subject to severe tax, was
to provide for very extraordinary cur
rency demands such as confronted US