The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1894-12-22
The Text of the Substitute
Currency Measure.
1t is substantially an Entirely
New Thing.
IT WAS INTRODUCED.
Nh. Springer Presented 1t Yes
terday in the House.

4ereuces between the Democratic
mem bers of the house committee on
banking and currency, ana with the
approval of the secretary of the treas
ury Mr.. Springer yesterday intro
duced a substitute for the Carlisle
currency bill 1t ID substantially a
new measure, although some of the
sections Of the original measure are
retained in the new bill The new
bill is arranged so as TO show the new
features in parenthesis. The first
section is as follows
a. That so much of all acts and
parts Of acts as require or authorize
the deposit Of United States bonds to
secure circulating notes issued BY
national banking associations Cor as
require such associations to de posit or
keep on deposit United States bonds
for any purpose except as security for
public money! be. and the same here
by is repealed (as to the associa tons
taking out circulation under this act);
and such notes shall not contain the
STA temenL THAT they are so secured.
Section is changed SO that banks
cannot only deposit legal tenders to
secure circulation, but also currency
certificates issued under section 5193
of the Revised Statutes Of the Z United
States-)
Section is retained entire, except
that its provisions are restricted to
apply TO national banking associations
taking out circulation under this
act"
Section 4 inserts stthe comptroller
Of the curren cv'' as the officer to
designate the place where notes are
TO be redeemed.
In section provision is made for
keeping up the safety fund and ia ad-
dition to the terms of the original
bill. it is provided that the collection
Of said tax Of one-fourth of one per
cent for each half year shall be re-
stunned and continued until the said
fund is restored to an amount equal
TO per cent upon the total circulation
outstanding. All circulation notes of
failed national banks not redeemed
on presentation to the treasurer Of
the United States or an assistant
treasurer of the United States. shall
bear interest at the rate of six per
cent per annum from the date OF the
suspension of the bank. until thirty
days after public notice has been Civ
en- that funds are on hand for their
redemption and such notes shall con-
stitute a first lien upon all moneys
thereafter received into the safety
fund
Section 6, allowing the secretary OF
the treasury to invest money in the
safety fund In bonds. ia the same as
In the original bill
Section rs entirely new and takes
the place Of section which has been
eliminated The new section is as
follows. 'fIhat every National Bank
ing association heretofore organized
and having bonds on deposit to secure
circulation may withdraw such bonds
en- the deposit Of lawful money Of the
In itcd States. now prov ded by law.
and thereafter such association may
take out circulation under this act
and be entitled to all the rights.
privileges and iminunities herein con-
ferred-"
Section specifies that the portion
Of the national banking act to be re-
pealed is limited 70 50 much of sec
ton ''as directs the secre tary Of the
treasury to receive deposits of gold
and to issue certificates thereon"
Section is substantially the same
as in the original bill
Section TO. providing for state
banks. is also the same as the original
bill except that II the restrictions On
STATE banks new provision is made
that the guaranty fund maintained
hy them may include currency certi-
1cates issued under section 5193 Of
the revised statutes"
Am entire new provision is added to
the state banks, as follows. When
ever the secretary Of the treasury and
the comptroller Of the currency shall
be satisfied that any banking cor
poration duly organized under the
laws OF any state and which trans
acts no other than banking business.
as provided BY this secriOn. has been
Incorporated under the laws OF the
state in which il is located which
laws require that the stockholders
shall be Individually Ia bic fOr the re-
demption Of its circulating notes to
the full extent OF their ownership Of
stock. and that- such Laws require that
the clrculs ton notes thereof shall
constitute a first Lien upon all the
assets of the bank. and also that such
laws require such bank to keep on
deposit at am times with an official of
the state authorized by law to keep
and hold the same. a guarantee fund
as required in the fourth paragra ph
OF this section, they shall issue to
said bank certificate to that effect
''Ihereupon said bank may issue
its notes a. provided in this act. and
there after the tax of 10 per cent here
tofOre imposed by Jaw upon the cireu-
lation of THE notes 0f state banks
shall not h. assessed or collected upon
pears that said bank has issued circu-
lating notes in excess Of IS per cent
Of its paid mp and unimpaired capital
or that its ca pital is impaired and has
remained So for thirty days. or that
the bank has not kept on deposit with
the state Official authorized by law to
receive and hold tile same the guar
antee fund as required in the fourth
paragraph Of this section or that said
bank has not prom ptiy redeemed its
notes in Ia wful money at par on de-
mand at it's principal Office or at one
or more Of its branch offices, if it has
branch Offices and that no person or
corporation other chan the bank is
suing such notes II violation Of the
provision of this act SHALL be liable 20