Birmingham age-herald., 1894-12-12
Read by Secretary Carlisle Before
 the Finance Committee
INTRODUCED IN THE HOUSE
Three of the Sections Given in Full, and the Others
 Fully Explained.

WASHINGTON, Dec. 11.-Mr. Springer of Illinois today introduced in the house the financial bill which Secretary Carlisle read to the committee on banking and currency. The bill repeals all acts and parts oiacts which require or authorize the deposit of United States bonds 10 secure circulating notes issued by national banking associa- tions, and such notes hereafter prepared shall not contain the statement that they are so secured.
 National banks are permitted to take out circulation to the extent of 75 per cent of paid up capital, circulation to be first lien upon assets. A tax of one-half of per cent per annum upon circulation is provided.
 A safety fund for the prompt redemption of notes of failed banks IS provided for by tax Of one-half per cent per annum until the amount reaches per cent of the total circulation.
 Sections and 12 of the act of 1882, relat ing to corporate extension, and section Al of the act of 1864, providing for national banking currency, are repealed.
 Section of the bill is as follows: That the secretary may, in his discretion, use from time to time any surplus revenue of the United States in the redemption and retirement of United States legal tender notes, but the amount of such notes re- blIeQ Shdll uOs III buG dBEISSdie GACe6u amount equal to 70 per cent additional cir culation taken out by national banks and state banks under the provisions of the act, and hereafter no United States notes or treasury notes authorized by the act of July Ii, 1890, entitled "An act directing the purchase of silver bullion and the issue of treasury notes thereon and for other purposes, n for less denomination than S10 shall be issued, and as rapidly as such notes of denomina- l,, ,f<.N Nt, treasury they shall be cancelled and au equal amount of notes of like character but in denominations of $10 or multiples thereof shall be issued in their places, but nothing in this act shall be so construed as to repeal or many manner affect the sec ond section of the thirdIact of July 14, 1890.
 Sec. 10. That the use of circulating notes issued by a banking corporation duly or gapzod 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 secre- tary of the treasury and the comptroller of the currency:
 1. That such bank at no time has had outstanding it's circulating notes in excess of 70 per cent of it's paid up and unim- pared capital.
 2. That it's stockholders are individually liable for the redemption of it's circulating notes 10 the full extent of their ownership Oi btOCh, Oub iIey oudll uOl DG iSDuiISQ III the case of persons holding stocks as execu- tors, administrators, guardians or trustees, if the assets and funds in their hands are liable in like manner and to the same ex tent as the testator, intestate, ward or person interested in such funds would be if living and competent to act and hold the stock in his own name.
 8. That the circulating notes constitute by law first lien upon all the assets of the bank.
 4. That the bank has at all times kept on deposit with an official of state author ized by law to receive and hold the same guarantee fund in United States legal tender notes, including treasury notes of 1890, equal to 30 per cent of its outstand- ing circulating notes.
 5. That it has promptly redeemed it's notes on par on demand at it's principal office, or at one or more of its branch offices, if it has branches.
 Section Il permits state banks to use the distinctive paper used in printing United States securities, but no state bank shall print or eugrave it's notes in simlitude of United States notes or certificates, or national bank notes.