The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-12-12
CARLISLE AND THE CURRENCY
The Bill Prepared by the Secretary In
troduced in the House.

Washington, Dec. n.-Representative
Springer Of Illinois to-day introduced in
the House the financial bill which Secre-
taty Carlisle read to the committee on
banking and currency. The bill repeats
all acts and parts of acts which require,
or authorize the deposit of United States
bonds to secure circulation notes issued
by national banking associations, and such
notes hereafter prepared shall not con-
tain the statement that they are so Sc
cured.
National banks are permitted to take
out circulation to the extent of 70 per
cent. of their paid up capital, the eircu-
lation to be first lien upon their assets.
A tax of one-half of one per cent. per
annum upon the circulation is provided
for.
A safety fund for the prompt redemp-
ton of notes of failed banks is provided
by tax of one-haf per cent per annum
until the amount reaches 5 per cent. of
the total circulation.
Sections 8 and u of the act of 1882, relat-
ing to corporate extensions, and section
81 of the act of 1864 providing for a ma
tiOnel bank currency are repealed.
Section of the bill is as follows:
Section 9.-That the Secretary CT the
Treasury may, in his discretion, use from
lilIG 70 AiAle any surplus revenue OF the
United States in the redemption and re-
tirement of United States legal tender
notes, but the amount of such notes re-
tired shall not, in the aggregate, exceed
an amount equal to 20 per cent. of the
additional circulation taken out by ma
tional banks and state banks under the
provisions of the act; and hereafter no
| United States notes or treasury notes au-
thOrized by the act of July IA, 1890 en-
titled AN act directing the purchase of
silver bullion and the issue of treasury
notes thereon, and for other purposes for
a less denomination than $40 shall be is
sued, and as rapidly as such notes of
denominations less than $40 shall be re-
ceiVed into the treasury they shall be
cancelled and an equal amount of notes
of like character, but in denominations
of $40 or multiples thereof. shall be issued
in their place but nothing in this act
shall be so construed as to repeal, or in
any manner affect. the second section Of
the said act of July, IA, 1890.
Sec. 10. That the use of circulat ting
! notes issued by a banking corporation
duly organized under the laws of any
state. and which transacts not other than
banking business shall be exempt from
taxation under the laws of the United
States when it is shown to the satisfaction
of the Secretary of the Treasury, and the
controller of the currency:
! First. That such bank has at no time had
! oNi0NdlANAilS IT'S circulation notes in excess
of 20 per cent. of its paid up and unim-
paired capital
Second That its stockholders are in
dividually liable for the redemption of its
/ circulating notes to the fun extent of
| their ownership of stock; but this shall
not be required in the case of persons
| holding stock as executors, administrators
/ guardians or trustees, If the assets and
funds in their hands are liable in like
manner and to the same extent as to the
/ testator intestate, ward or person inter-
ested in such funds be, if living and com
! petent to act and hold the stock in his
| own name.
Third. That the circulating notes con-
sutute by law a first lien upon all the as
| sets of the bank.
Fourth. That the bank has at all times
kept on deposit with an official of the state
authorized by law to receive and hold the
same, a guarantee fund in United States
| legal tender notes, including treasury
notes of 1880, equal to 80 per centum of its
outstanding circulating notes; and
Fifth. That it has promptly redeemed its
notes at par on demand at its principal Of
nee, or at one or more of its branch Of
fees, if it has branches
Section II permits state banks to use