The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1894-12-27
PROVISIONS OF THE SUBSTITUTE
CIrpRENCY BILL.

CURRENCY BILL.
The substitute for the Carlisle currency
hill presented to the house OF representa-
lives by Mr.. Springer does not change
the original bill materially so FAR as 'ne
currency system is involved. one Oh inc
nrincipal changes has the effect oil allowing
tho national banking system to run
smoothly along without any arbitrary pro-
vision that national banks must reorsan-
;ze under the new system as contemP'a'cu
nv the Carlisle bill. The original Dill
would have required the national banks 10
surrender the government BONDS which
NOW constitute their basis OF circulatlon'
brt the substitute does away win 'hiS
provision. ,a.i
An important feature OF the suoS'i,
tnte removes the unknown napllity Vi
hanks to guarantee the notes oil all o'ner
hanks The Carlisle bill contemplates
that If a bank failed its notes would DC
noid ont of the assets and the deficiency
made up out of the general saiety luhu'
Hinder the provisions of the SUBSTITUTE
the assessment plan is eliminated ana the
.ofetv fund will be the limit of l1aDlllty.
The banks, however, will be compeiieu
70 keen up the safety fund under more
rigid provisions than were embodied IN the
original bill. There are also many lesser
alterations, although some OF the sec
tions of the original bill are retained. Inc
original bill repeats all acts and parts OF
acts and the substitute adds, 80 much
If nil nets" ETC., authorizing the deposit
of United States bonds to secure circulat-
ing notes issued by national banking as
sociations, but the substitute ADDS OF as
require such associations to deposit, OF
keen on deposit, United States bonds LOT
any purpose except as security for puoilc
money" be and is hereby repealed, ana
IA substituted "as to associations taking
ont calculations under this act
Section 3 is retained entirely, except IL
:. moda to conform to the above substl-
tute conditions BY section 4 the comp
troller of the currency is authorized 10
name the place where notes are TO DC re-
deemed. In section provision Is maze lor
keeping up the safety fund, and an auul-
t;on In the terms of the original bill IL Is
proyided "the collection of the tax Oh one
fourth of one per cent for each hait year
shall be resumed and continued uhtll INT
said fund is restored to an amount equa
to + per cent per annum from the dat'
of tho suspension of the bank until ~
DAYS after public notice is gwen Una
.l,.,NV ion
funds are on hand for their redemption
and such notes shall constitute hrst hei
upon all moneys thereafter received lh''
the safety fund" The 9th section, allow
ing the secretary of the treasury 10 Ill
vest money in the safety fund IN bonus
is the same as in the original Dill I'M
9TH section is entirely new and allows e'
ery bank now in existence ana ha'in
bonds on deposit to secure circulation L
withdraw such bonds upon the deposit o
lawful money of the United States nov
nroyided by law, and thereafter such pan
NAV take out circulation under TINS nc
and be entitled TO all the rights and III
munities conferred by this bill.
Section limits so much OF the na'ioh'
banking act to be repealed to so much
section IL "as directs the secretary c
the treasury to receive the deposits
gold and issue certificates therefor. oe
tion is not changed, but r
mains as heretofore puoiisn'
by The Statesman. Section 10, proVldil
for state banks, is also the same as IN III
original bill, except in restricting sta'
banks new provision is inserted that u
Guarantee fund maintained by the
NAV include currency certificates ISSUE
under section 1888 of the Revised Qua
utes." and an entirely new clause is a
ded 10 the state banks providing IN
whenever the secretary oil u
treasury or the comptroller OF the Gu
rcncy shall be satisfied that any bankll
corporation, duly organized under the la'
of a state where it is located and doii
nothing but q banking bu mess, ana VINE
the laws of the state hold the stockholue
individually to the full extent of the
ownership of stock, and that such laN
require that the circulating notes there
constitute n first lien upon all the asSe
of the bank and that such laws relui
The hank to keep on hand at all times
deposit for a guarantee fund with t
official of the state authorized TO mold t
same, as require in the fourth paragra
of this section, they shall issue to 81
b. nix certificate to that effect aud 50
bank may issue its notes as provided
this act and thereafter the tax of 10
cent heretofore imposed by law upon t
circulation of notes of state banks sh
not be assessed or collected upon t
notes of said bank unless it appears tn