The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1894-12-19
THE NATIONS FINANCES.
REPORT OF SECRETARY OF
THE TREASURY CARLISLE.

THE TREASURY CARLISLE.
He Suggests Plan for a Reform in
Our Currency-A Gradual Retire.
ment Of United States Legal Ten
der Paper Recommended Out
line Of His New Banking Scheme.
Secretary Carlisle's report Of the opera
tions Of the United States Treasury Depart
ment for the fiscal year ended June 80 has
been presented to Congress. It treats in de-
tail what was only touched upon by the
President In his annual message on the
financial policy OF the Administration. Un.
der the head OF Currency Reform" Score
tary Carlisle takes up the subject, which he
treats exhaustively. he premises II with
the condition Of the Treasury on the first
day OF the current fiscal year. He then re-
views the present condition Of the Treasury
and states that the laws now in force will
yield an ample revenue for the fiscal year
1885. After explaining the causes OF the
financial depression he Gays that ga brief
statement OF the practical and unavoidable
results Of the existing legislation will DEM
onstrate its injurious effects upon our fnan-
cial affairs more clearly than any argument
that could be submitted" He concludes
this statement by saying: "In view Of the
foregoing considerations, and many others
that might be urged in favor Of reorganiza-
ton and reformation Of our paper currency
system, have prepared the outlines OF q
plan which In my opinion will relieve he
Government to q great extent from the bur-
dens now imposed upon Il, secure within
reasonable time safe and elastic National
and State bank currency, and result ulti-
mately In the permanent retirement of
United States legal tender notes of both
classes" It's In brief as follows:
II. Repeal all laws requiring or authoriz-
ing the deposit OF United States bonds as
security for circulation.
"2. Permit National banks to issue notes
to an amount not exceeding seventy-Hve per
.centum Of their paid-up and unimpaired
capital. but require each bank before re-
ceivlng notes to deposit a guarantee fund,
consisting OF United States legal tender
notes, including Treasury notes Of 1890, to
the amount OF thirty per centum upon the
circulating notes applied for. This percent
age OF deposits upon the circulating notes
outstanding to be maintained at all times,
and whenever bank retires its circulation,
IN whole or In part, Its guarantee fund to be
returned to 1t In proportion to the amount Of
notes retired.
"a. Retain heprovision OF the law making
stockholders individually liable, and provide
first lien upon all the assets of the bank.
"a. Impose q tax Of one-hah of one per
eentum per annum, payable semi-annually,
upon the average amount OF notes In circu-'
latton, to defray the expenses OF printing
notes, official supervision, cancellation, etc.
''5. No National bank note to be of less
denomination than S10, 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
TOR Issue upon application reserve Of Ma
donsl bank notes for each banking associa-
tion having circulation.
"6. Require each National Banking AssoJ
c1ation to redeem its notes at its own Office,
or at its own Office and at agencies to be-
designated BY 1t. E@ ..N- q,
~. To oprovide salaryiund for the i'm
mediate redemption Of the circulating notes
OF failed banks, impose tax Of - per
centum per annum upon the average cir
culatton of each bank until the fund
amounts to five per centum OF the total cir
culation outstanding. Require each bank,
and each bank taking out additional circul
latton, to deposit its proper proportion
OF the fund before receiving notes. When
O bank fails, its guarantee fund held on de-
posit to be paid Into the safety fund and
used IN the redemption Of It's notes, and II
this fund shall be Impaired by the redemp-
tton Of the notes Of failed National banks,
and the Immediately available cash assets of
such banks are insufficient to re-establish
the fund, It shall at once be made good by
pro rata assessments upon the other banks,
according 10 the amount OF their outstand-
Ing circulation /; but there shall be first lien
upon all the assets of the failed bank, or
banks, to reimburse the contributing banks.
The safety fund may be invested IN OUT
standing United States bonds having the
longest time to run, the bonds and the in
terest upon them to be held as part OF the
fund and sold when necessary to redeem
notes of failed banks. -.
's. Repeal the provisions Of the reorgani-
cation and extension act of July IL, 1882, inn
posing limitations upon the reduction and
Increases OF National bank circulation.
"9. Repeal all provisions or the law re-
curing banks to keep reserve on account
Of deposits.
40. 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 in the agJ
gregate exceed an amount equal to seventy
per cent. OF the additional circulation taken
out BY National and State banks under the
system herein proposed. . 81
al. Circulating notes issued BY 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 Secretary Of the Treasury and the
Comptroller Of the Currency
81. That such bank mas at no time had
outstanding its circulating notes in excess
Of seventy-fve per cent. OF its paid-up and
capital.
20. That Its Stockholders are individually
liable for the redemption of its circulating:
notes to the full extent Of their ownership Of
stock. .
"s. 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
guarantee fund In United States legal tender
notes, including Treasury notes of 1890,
equal to thirty per cent. OF the outstanding
notes AMI
"'5. That 1t has promptly redeemed itsnotes
IN demand at Its principal office, or at one
,r more OF its branch offices, if it has
branches.
"12. The Secretary Of the Treasurymay,
1nder proper rules and regulations to be es-
ablished by him, permit State banks to pro-
,ure and use in the preparation Of their
totes the distinctive paper used In printing
United States securities; but no State bank |
hall print or engrave its notes in similitude |
IT a United States note or certificate, or
National bank note"
A detailed routine account Of the opera |
tons of the Treasury Department closes the
eport.