The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1894-12-04

o0tsenleut OF the secretarys propose.
changes In the law ana n brief aud imuerfee
statement Of their prominent features
II is proposed TO repeal an laws protidini
for the deposit OF United States bonds as 81
I cur7ty for circulation 70 permit nationa
\ banks TO issue circuIating notes not exceadfr.
I pa amount - p-r cent Oi iurir paid dp ana un
impaired capital provided they deposit win
the government as guarante. fund Ia Unite,
states legal tender notes including trea-ur,
notes Of ls9o. q sum equal iu amour, 10 8l
per cent OF the notes they desire TO issue, tht
deposit TO he maintained 90 all times but
Shenever any bank retires amy part or It, cir
cuiatlon a proportions. part of its guar
antee fund shall be returned 90 t I'd
permit the secretary 90 the treasury
90 prepare and keep on hand ready Tor issBe
. 10 case an Increase .u c.rcuiat. ou is desire,
blank national bank notes Tor each bank hav
inE circulation and ro repeal She prnvfs .ob.
. % the present law Imposing limitations and re-
strictions upon banks desiring 10 reduce 0r Iu.
crease their circulation thus PERMITTING such
Increase or reduction within The limit of
seventy I've per cent o; capital to be- quickly
made as emergency arise In addition 90 he
guarantee fund required 60 Is proposed To- pro
vide safety fund Tor the lmL'ctIAte redemp.
ton OF The circulating notes OF failed banks
boy imposing small annual tax say one halt
of one per cent upon the aycra ;e circulation
Of each bank until the fund amounts TO five
per cent % the total circulation outstanding
When bank fails its guarantee fund is to be
paid into this safety funds and its notes are
to be redeemed in the FIRST instance from such
safety fnnd thus au mentet any impairmeut
Of such fund caused thereby TO be made good
from the Immediately available cash assets OF
said bank and u these should be insufficient.
auch impairment to be made good by pro-
rata assessment among the other bark their
contributions continuing a f-s. ,... lrna
the assets Of the failed bank BOO le. OF q. The
contr buting banks
AS furtter security SO f. "oare 1laej
that the existing proposition n.lf lls ndi.
vidual liability Of stOckholier. 20 20 Dee re-
tained And the banks Indebtedness on ac-
count Of its circulatin notes is to be made a
first lien on all its assets For the purpose OF
meeting the expense OF printing notes ON
cals, supervision cancellation and other lik e
charges there shall be imposed a tax OF saw.
one half OF one per cent per aunum upon the
average amount OF notes In circulation IL IS
further provided that there shall be
no national bank notes issued O.,
a less denomination than ten dollars
that each national bank except I'm case OF a
failed bank shall redeem or retire its notes In
the first instance az its own once or at
agencies to be desiguated by IL, that no fixed
reserve used be maintained on account OF de.
/ posits
! Another very important feature OF this plan
/ Is the exemption OF state banks from taxa.
] III
shown to the satisfaction OF the Sc, retary OF
| the treasury and comptroller OF the currency,
/ by banks claiming such exemption that they
/ have not had outstanding their circulating
notes exceeding seyentr-fye per cent ol
their paid up and uuiiapaired capital
I that their stockholders are individually liable
for the redemption OF their circulating note.
TO the 'ull extent OF the ownership ot stock
that the liability OF such banks upor
their Clrc uatlng notes CONSTITUTES
under their state law first lien upor
their assets that such banks have
kept and maintained Euarant ~
fund in United states legal tender notes in.
/ cluling treasury notes of 1870 equal 20 thirty
per cent Of their outstAudn. circuIatin.
notes. and that such have promptly red eeme5
1 their circulating notes when presented "a
their principal or nrau. h once
IL is quite likely that this scheme may be
useiully amended IN some OF its details. but
/ am satisfied 30 furnishes q basis for "a YER,
I great Improvement ,H our present baukin.
! and currency system
conclude this communication FULLY appre
| ciatiug that the responsibility Tor LEGISLATION
affecting the people Of the United States rest
upon their representatives in con gress ant
| ASSURING them that whatever accordance viii
| recomme ncatiOuS have made or not shall
/ be glad 10 cooperate in perfectiugauy legisla
| tiou that tends TO the pro perity aud wei fare
of our people.
,Signed GROVER CLEyELAND
Executive Mans ion, December I-yl