The times. [volume] (Richmond, Va.) 1890-1903, 1894-10-14
m. p,nu IN Fetal.

Tho following is the plan adopted by
the Bankers convention helu d.
more: - .ba National
Section + The provision OF the do Na an o.
Banking Act, requiring the Up hare-
bonfS, IN secure circulating notes He4e
after issued, shall be repealei', ,o dir
Sec. 2 Allow the banhs 10 issue 81. .a,
culatng notes to the amount Oh my "a
centum OF their paid-up, uhltnpali -
centtai snbiect TO a tax Of one-nalf or
one per centum per aIihuIi upV ,,and
average amount OF clrcdlatlon oua E' -
ing for the year; and an auui, Io,,'t ~
cuation OF Twenty-Five per Cehtun. "a
their paid-up, unimpaired capital SIP
tect bOtn TO the tax OF One-naH VI Ono
per centum per annum anu " az ~
tional heavy tax per aAhuil uPon -
average amount OF sucn clr 'I LII nj
standing Tor the year; sald aaoi a,.n MS as
twenty-five per centum TO De hho"A 90
emergency circulation. -. - ore
Sec. 3. The tax Of ohe-hal Oh az
per centum per annhm up on Iii sail
amount of circulation outstandlne s i'at
be paid to the Treasurer OF Tue -
States as a means OF revenue, % ,ba
which the expenses OF the oHlIe m nj
Comptroller of the currency, ny Iii no
ing OF circulating notes, etc, shdlI NC
The excess over one-half OK one per
centum OF the tax imposed upotnt M
emergency c,rcuIadon' shdll " 20" -, "a
the guarantee Iund' TeieTred u III ''
ton o. circulation
Sec. 4. The banks issuing clrculat ION
shall deposit and MAINTAIN win 80
Treasurer Of the United states
demptIOn fund equal 10 I'VE per ~ ~,
of IN. ir avcrag. outstaud nS clcui itloh'
as provided tor under the eA sims 49,
Sec. 5. The redemption ol tne ~ rs
Of all banks, solvent or ms CIV, ~
made as provided for b. the 'M'-I"e
law. .,.oo f,nI"
Sec. G. Create a guarantee II IA
through the deposit by each tInh VI ~
per centum upon the amount St,S.-'aftor
uon received the first year az. 80
imnOse a tax OF oHe-hdlt OF ny p
centum upon the average aIhoLH' - Ia
standing circulation, the same W nc pia
into this fund until II shaH etu@ r nj
Dar centum OF the entire ciIculdlloi ~
Itanding when the collection u zen tdA
shall lie suspended, To be Ee5u HEu - 80
ever the Comptroller OF '"e |"'' 0''~'
shall deem il necessary. .,., ,,ou 10
The notes Of insolvent banks s'@iit+ -
redeemed by tne Treasurer i t"s I, a.
States out OF the guarantee IuiGG, -
shall be sufficient ana u .ol 5r. W
then out OF any money III lHe 49,
the same to be reimburse 20 IA ,rnen
ury out OF the guarantee IuHu 49,
reDieufsned either from the d79-t7 Va
the failed banks or from the tax "'o'e
said ,.,to,s o,s,ariza a
a 80 ne man shall nave gone INTO
Cneration NAV receive cigculatloa L!NI
the Comptroller OF the Cu!fe5C! lP.ri
paving into the guarantee Iuuu . ~
bearing the ratio to the ctrcu.dIL,n e. -,
n1tad for and allowed that the guar ihtee
fnnd" bears To the total circulation CuI-
standing. and TO be subject 10 gu. "a
Of one-half OF one per ceH1uht rrt a.
mum. as called for by the Ir,',i"n ana
the United States Tor tHe Cie'''o''
maintenance Of this tGnd' ,,u bove
No association or individual shaII Hdse
any claim upon any part OF TIE i.o' ~
In said guarantee fuhd' 1872 rs ~
redemutlon Of the clrculatihs Ho,eoo
arv inSoIyent National banking asaocla@,,
tjon ANY surplus or residue OF SUI
"puarantee fund when ma! DI a.,
after ascertained or d5lermlheu - 't,i
shall inure TO the beneht u inc
Sc + The Government shan nave "a ="
nrior lien upon the assets Oh ca I(aHrt ria
bank and upon the liability Oh SUD q1'. a..
Dts for. the purpose OF restoring tnt
emount Withdrawn from the SudIanIe'
Fur1,, for the redemption OF us CllN.',at
ZION. not to exceed, however tIle atrn,,ia
If Inc failed banks outsIahlIns ~ III,
ton after deductng the sum lin ~ it A. al
i'm The redemption tuud "2SCtlon ~
rii Ave in Inc hands OF the Treasurer OF
the United States. r,.t,od bv =
Sec S. Circulation can ne IttttttVG Gin
bank at any time upon utP stItcs iaW
~ Treasurer OF the United Sldtc9 In~
81 ,nonnv I'm amount equal 10 inc sum
dasirad 10 he Withdrawn, ana lihLl In Iia,e
ly mon such deposit the TAX lhu -,
IN Sections >, ), ana sIid'l
Tho circulation 50 retired. ,.,,t,,, ,,,
~ a In the event Of the Winning up
81 +bo buslncss Of bank by reason u
insolvency or otherwise, the ' go,
81 the United states, WIN tHr -, ,,r,,
- Of the ComptrO!ler OF the ! lcHCS'
renee VI tbe anufiCatiOn of the directors,
or If the liquiIatOr, receiver, aao''''IIl In,
otbor proper official, anu upo. 80
satisded that proper artdhStli ~ n|tes
been made for the pay mem 5,,a >, Groom.
vi Wv" o,,er IN such directors, lqulddtoi'
Eocaiver. assignee, or otheF PoPt ~,
r,ai he amount to the ctII't w., "a
bank i'm the redemption tuHu NUN ''o'
In ri Sec'i %nw . York Journal Of Commerce
makes the following comments upo'i ''''7
plan. ,,rantpe and the
Il .3,1 ',v ~ the deposit Of bonds are
~ cardinal features Of this plan. lHty
ave not new as to either cohceplIoH ~
practice. our readers are - f"rna ~
with our long advocacy OF tll' 80 th9t
security that IL Is needless 10 say i''t.
ne jcenn II the best possible, anu 10
1T conclusion we believe the bahNi,nrs
community are generaly aan rs ,,rnI7,osaIs
this very important extent ~ r. ronro-
may probably be safely taken az -
genting the best current opinion III uallN-
Inc circles. on other points Ho"eN,1h
there is likely 70 be cOnsideIapi' wv $50
If opinion The per cent. sua' az t =,
fnnn-Wltgh
meet the temporary purpose OF Piok 'utne
for redemptlons between the oa'e u S"
UeUsion and the realization on ass
axnoeed 10 the objection ot us D'IHs
cumbrOus continuance Tor no te"fS - a.,
sary purpose. II has the Iault " ~
NoiVing dependence upon treasury az
yances. and Il violates a souhI PIlnCiplT
~ banking. in making the banks mutudI
nltarantors Of each others oDlSaltohs.
So long as the nOte-holders can ran odch
on the entire assets, and on tlle uupIiCdle
liability of shareholders, they can nave
no Drcasion for haste in demanding IN
stant REDEMPTION: the notes Woulu nave
q credit that would keep them cIculauIt
AT mar until the liquidator was ready
10 nav them. 1t is also an oDJeStlol tiidt
the per cent redemption IuHu am IN, .llS
: uer cent guarantee fund comDihed
vouId together neutraiize the beneht or
the issues TO the extent Of 10 per cent
OF their volume. .,-,,
The suggestion Of an emergency issue
is a German idea. and whatever may os
its use there. II seems 10 have no suttcleht
"raison detre" IN this country espeJldI-
~ as those transient issues would eNcludS
the issue Of an equal amount OF norman
circulation. II has the serious draw
back OF restricting the ordinary issues 10
70 per cent. OF capital. which Is q limit
that would very probably prove incom-
p&tible with the real currency require,
ments of the country. With the capitai
of the banks at, say 500, OcoOW, ms would
allow a maximum OF only Ep'voo OF
notes which would be set OF by the Win
drawal of &S5 10000 into the redemption
and guarantee funds. leaving net amount
of only 100000 OF available currency
from this source This Is a smah ming
10 offer, and especially II the growing
imperative demand for the retirement OF
Government legal tender paper IS 10 be
satisned-a demand with which sonserVa-
tive bankers can only sympathiZc. IL