The Coconino weekly sun., 1894-12-13
THE CURRENCY.
Nr Carlisle Submits a New Bank
 ing System.
rns Secretary of the Treasury Has Plan Which He Believes Wul Relieve the Financial Situation-Its Out
 lines Given.

an thc state Of the finances Of the na- t;on was sent to congress yesterday. The most important feature of Mir. Car risle's report is his discussion of the subject of currency reform, in the coprse of which the administration nIans of new system of currency are spt forth in detail
 The secretary reviews the circum- stances leading up to the first $50, OO0,- OOO issue of bonds as means of re- nlenishing the gold reserve, yielding S5S66O.9l7, and increasing the free gold in the treasury to S107, 446, s02. The lowest point reached by the reserve since the redemption of specie pay ments was on the 7th day of August, 1894. when, by reason of withdrawals in the redemption of notes, it was re- duced to S52, 1s9, 800 After that it was slowly replenished by voluntary ex- changes of gold coin for United States notes by the banks and by small re- ceipts of gold in payment of dues to the government until the 14th of No yember 1894, when it reached the sum of S6l, ,S7S,3 ,374.
 The secretary then says:
 Ihave prepared the outlines of plan which, tn my opinion, will relieve the government to rrea, extent from the burdens now imposed upon it, secure within reasonable time Q safe and elastic national and state bank currency, and result ultimately in the permanent retire. ment of United States legal tender notes of both classes. It is, in brief as follows:
 FirSt-Repeal all laws requiring, or author izlng the deposit of United States bonds as se- curity for circulation.
 Second-Permit national banks to issue notes to an amount not exceeding 75 per centum of their paid up and unimpaired capital, but re- Quire each bank before receiving notes to de- post guarantee fund, consisting of United States legal tender notes including treasury notes of 1890 to the amount of 30 per cent. of the circulating notes outstanding to be main tained at all times, and whenever bank re- tires its circulation, in whole or in part, it's guarantee fund to be returned to 1t in propor- tion to the amount of notes retired.
 Third-Retain the provision of the law mak- ing stockholders individually liable and pro- vide that the circulation notes shall constitute first lien upon all the assets of the bank.
 Fourth-Impose tax of h of per centum per annnm, payable semi-annually, upon the average amount of notes in circulation to de- fray the expenses of printing notes, official supervision, cancellation, etc.
 Fifth-No national bank note to be of less denomination than ten dollars. and all notes of the same denomination to be uniform in design; but banks desiring to redeem their notes in gold may have them made payable in that coin. The secretary of the treasury to have authority to prepare and keep on hand ready for issue upon application a reserve of blank national bank notes for each banking association having circulation.
 Sixth-Require each national banking asso- citation to redeem it's notes at it's own ofice, or at it's own official agencies to be designated by 1t.
 Seventh-To provide safety fund for the immediate redemption of the circulating notes of failed banks impose a tax of (blank) per centum per annum upon the average circula- tiOn of each bank until the fund amounts to 5 per cent. of the total circulation outstanding Require each new bank and each bank taking out additional circulation to deposit its proper proportion of this fund before receiving notes, When bank fails its guarantee fund held on deposit to be paid into the safety fund and used in the redemption Of its notes, and if this fund shall be impaired by the redemption of the notes of failed national banks, and the immediately available cash assets of such banks are tnsuf- fcient to establish the fund it shall at once be made good by pro rata assessments upon the other banks, according to the amounts of their outstanding circulation but there shall be first lien upon all assets of failed bank or banks to reimburse the contributing banks. The safety fund may be invested in outstand- Ing United States bonds, having the longest time to run, the bonds and the interest upon them to be held as part of the fund and sold, when necessary, to redeem notes of failed banks.
 Eighth-Repeal the provisions of the reor- ganization and extension act of July l2, 1892, imposing limitations upon the reduction and increase of national bank circulation.
 vs.sA aN .NN, d. .I.. quiring banks to keep reserve on account of deposits,
 Tenth-The secretary of the treasury may in his discretion, use any surplus revenue of the United States in the redemption and re- tirement of United States legal tender notes but such redemptions shall not Tn the aggregate exceed an amount equal to 70 per cent of the additional circulation taken out by national and state banks under the system herein pro- posed.
 Eleventh-Circulating notes issued by a banking corporation duly organized under the laws of any state, and which transacts no other than banking business, shall be exempt from taxation under the laws of the United States when 1t is shown to the satisfaction of the sec- retary of the treasury and the comptroller of the currency:
 1. That such bank has at no time had out standing it's circulation notes in excess of 75 per centum of it's paid up and unimpaired capi- tal
 ?. That it's stockholders are individually lia- ble for the redemption of It's circulating notes to the full extent Of their ownership of stock.
 3. That the circulating notes constitute by law a first lien upon all assets of the bank.
 f. That the bank at all times keep the guar antee fund in the United States legal tender notes including treasury notes of 1890, equal to 30 per centum of it's outstanding circulating notes: and
 5. That it has promptly redeemed It's notes on demand at it's principal office, or at one or more of it's branch offices, if it has branches.
 Twelfth-The secretary of the treasury may, under proper rules and regulations to be estab- lished by him. permit state banks to procure and use in the preparation of their notes and distinctive paper used in printing United States securities; but no state bank shall print or en- grave it's notes in similitude of United States note or certificate, or national bank notes.
 Whatever may be the objections to the issue and circulation of United States legal tender paper upon either constitutional or financial ground, 1t has become so incorporated into our currency system and constitutes so large part of our active circulation that it could not be suddenly withdrawn without produc- ing in the present state of our laws considerable disturbance in the fiscal operations of the government as well as the business of the people, and, l~al l@.