Alpena argus. [volume] (Alpena, Mich.) 1893-1909, 1894-12-12

eminent, as a guarantee fund, In United
States legal tender notes, including treas
ury notes OF 1890, "a sum equal In amount
to so per cent OF the notes they desire to
issue; this deposit to DO maintained at
all times, but whenever any bank retires
any part OF Its circulation a proportional
part OF It's guarantee fund shall be return
cd to 1t; to permit the secretary of the
treasury TO prepare and keep on hand
ready for issue In case an increase In cir
culation is desired blank national bank
notes for each bank having circulation,
and to repeal the provisions Of the present
law imposing limitations and restrictions
upon banks desiring to reduce or increase
their circulation, thus permitting such in
crease or reduction within the limit of
seventy-fve per cent OF the capital to be
quickly made as emergencies arse.
In addition to the guarantee fund re-
quired, IL is proposed to provide safety
fund for the Immediate redemption OF the
circulating notes of failed banks, by i'm
posing small annual tax, say one half
of one per cent upon the average circula-
ton Of each bank until the fund amounts
five per cent Of the total circulation out
standing. When a bank falls its guar
antee fund Is to be paid into the safety
fund and Its notes are to be redeemed In
the first instance from such safety fund
thus augmented-and impairment of such
fund caused thereby to be made good
from the Immediately available cash as
sets of said bank, and II these should be
insufficient such impairment to be made
good by pro-rato assessments among the
other banks, their contributions constl-
tuting first lien upon the assets OF fail
ed banks In favor OF the contributing
banks.
AS further security II Is contemplated
that the existing provision fixing the In
dividual liability Of stockholders Is to be
retained and the banks Indebtedness on
account OF its circulating notes Is to be
made q first lien on all It's assets.
For the purpose OF meeting the expense
OF printing notes, official supervision,
cancellation and other like charges, there
shall DO imposed tax OF say one-half OF
one per cent per annum upon the average
amount OF notes In circulation. II Is
| farther provided that there shall be no
national bank notes issued Of less de-
nomination than 80; that each national
bank, except In case Of failed bank,
shall redeem or retire Its notes In the first
instance at its own office, or at agencies
to be designated by II, and that no fixed
| tO0Oh w hOOu w huiiOnihSu vi oSNONhO VI
deposits.
Another very important feature of this
| plan Is the exemption Of state banks from
taxation by the United States In cases
where 1t Is shown, to the satisfaction Of
the secretary Of the treasury and comp
troller OF the currency by banks claiming
such exemption, that they have not had
outstanding their circulating notes, ex-
ceeding seventy five per cent OF their paid
up and unimpaired capital that their
stockholders are individually liable for
the redemption of their circulating notes
to the full extent of their ownership Of
stock that the liability of said banks
upon their circulating notes constitutes
under their state law O first lien upon
their assets; that such banks have kept
and maintained guarantee fund In United
States legal tender notes, including trea-
sury notes Of 1890, equal to 30 per cent.
Of their outstanding circulating notes and
that such banks have promptly redeemed
their circulating notes when presented at
their principal or branch offices.
1t Is quite likely that the scheme may
DO usefully amended In some OF its de-
tails, but am satisfied 1t furnishes a
basis for q very great Improvement In
our present banking and currency system.
| I.conclude this communication fully..ap-
prcciating that the responsibility for all
legislation affecting the people Of the
United States rests upon then represen-
tatives In congress, and assuring them
that whether In accordance with recon-
mendations have made or not shall be
glad to cooperate In perfecting any legis-
lation that tends to the prosperity and
welfare Of our country.
| GROVER CLEVELAND.