The herald-advance. (Milbank, S.D.) 1890-1922, 1894-12-28
NEW CURRENCY BILL
A SUBSTITUTE FOR SECRETARY
CARLISLE'S MEASURE,
Among Other Changes, 1t Relieves
the National Banks From the Ar
biArary Provision of Organizing
Under the New System.

Washington, Dec. 23-After confer
ences between the Democratic mem
bers OF the house committee on bank
ing and currency, and with the ap-
proval Of the secretary Of the treas
ury, Mr.. Springer introduced a substi-
tute for the Carlisle currency bill. 1t
Is substantially new measure, al
though some Of the sections of the
original measure are retained in the
new bill The new bill is arranged so
as to show the new features in pa
rentheses. The first section is as fol
lows:
That $50 much of all acts and parts
of acts as require or authorize the de-
posit of United States bonds to secure
circulating notes issued by national
banking associations Tor as require
such associations to deposit or keep
on deposit United States bonds for
any purpose except as security for
public money! be and the same here
by is repealed (as to associations TAX
ing out circulation under this acD, and
such notes shall not contain the state
ment that they are so secured
Section Is entirely Few. and takes
the place Of a section which has been
eliminated. It is as follows:
Section THAT every Eatioral bank
ing association hereafter organized
and having bonds to deposit to secure
circulation, may withdraw such bonds
upon the deposit Of lawful money of
the United States, now provided by
law. and thereafter such association
may take out circulation under this
act and be entitled to all the rights,
privileges and immunites herein CON
ferred.
Section specifies that the portion
of the national banking act to be re-
pealed Is limited to so much Of sec
tion II ''as directs the secretary Of
the treasury to receive deposits Of
gold and to issue certificates thereon"
Section is substantially the same
as in the original bill.
Section 10, providing for state banks,
is also the same as in the original bill,
except that in the re restrictions on state
banks new provision is made that
the guaranty fund maintained by them
may include '.currel CIV certificates is
sued under section 5193 Of the Re
vised Statutes.'
Whenever the secretary of the
treasury and the controller Of the cur
rency shall be satisfied that any bank
ing corporation duly organized under
the laws of any state, and which
transacts no other than a banking
business, as provided in this section,
has been incorporated under the laws
OF the state in which it is located,
which law requires that the stock
holders hall be individually liable for
the redemption of its circulating notes
to the full extent Of their ownership
Of stock, and that such laws require
that the circulating notes thereof shall
constitute first lien upon all the as
sets of the bank. and also that such
laws require such bank to keep on de-
posit at all times with an official of
the state authorized by law to
receive and hold the same,
guarantee fund as re-
CURED by the fourth paragraph of
this section. they shall issue to said
bank a certificate to that effect There
upon said bank may issue its notes as
provided by this act. and thereafter
the tax Of 10 per cens. heretofore i'm
the notes of state banks. shall not be
assessed or collected upon the notes
of such bank, unless it appears that
SAID bank has issued circulating notes
in excess of Is per cent of its paid up
and unimpaired capital, or that its
capital is impaired and has remained
SO for thirty days. or that the bank
has not kept on deposit with the state
official authorized by law to receive
and hold the same, a guarantee fund
as required in the fourth paragraph
of this section, or that said bank has
not promptly redeemed its notes in
lawful money at par on demand at its
principal office or at any or more Of
its branch offices, if it has branch Of
fees, and that no person or corpora
ton. other than the bank issuing such
notes, in violation of the provisions of
this act, shall be liable to the tax OF
10 per cent upon the circulating notes
Of state banks as now provided by
law"