Waterbury evening Democrat., 1894-12-22
SECOND CURRENCY BILL
Chairman Springer Introduces a
Substitute Measure.
Is APPROVED BY THE SECRETARY.

Two Important Features introduced In the
New Bin. which Is the Result of n Long
Conference With Mr.. Carlisie-sypopsi.
of fhs Substitute Measure.
WASHINGTON, Dec. 22-Aftcr confer
enccs between tho Democratic members of
the house committee ON banking and cur
rency and with the approval Of the score
tary OF the treasury Mr.. Springer intro
duced substitute for the Carlisle currcn-
q DILL IL u substantially q new measure,
although some OF tho sections OF the orig
inal measure are retained In the new bill
Tho first section provides that all acts and
parts nj acts as require or authorize tho
deposit or United States bonds to secure
circulation notes issued by national bank
ing associations, or as require such asso-
Citations to deposit or keep on deposit Unit
cd States bonds for any purpose except
as security for public money, DO and the
same are hereby repealed, and such notes
shall not contain the statement that they
ara so secured.
Section is changed so that banks can
not only deposit legal tenders to secure
circulation, but also currency certificates
issued under section 5, 1893.
Section Is retained entire except that
its provisions are restricted to apply to ma
tiona1 banking associations taking out
circulation under this act
Section names the comptroller of the
currency as the officer TO designate the
place where notes are to be redeemed.
Provision For the Safety Fund.
In section provision Is made for keep
ing up the safety fund. and in addition to
the terms of the original bill it Is provid-
ed that the collection of said tax Of one
fourth ~ Ks.r III
shall bo resumed and continued until the
said fund Is restored to an amount equal
to per cent upon the total circulation
outstanding. All circulating notes of fail
ed national banks not redeemed on presen-
tation to the treasurer of the United
states or an assistant treasurer of the
United States shall bear interest ut the
rate of per cent per annum from the date
of the suspension of the bank until 30
days after public notice has been given
that funds are ON hand for their redemp-
ton, and such notes shall constitute first
lien upon all moneys thereafter received
into the safety fund
Section is entirely new and is as fol-
lows:
That every national banking associa-
ton heretofore organized and having
bonds on 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 asso-
citation may take out circulation under
this act and be entitled to all the rights,
privileges and immunities herein confer
red
An entire new provision is added rs to
state banks, as follows:
The state Bank Provision.
Whenever the secretary of the treasury
a..
be satisfied that any banking corporation
duly organized under the laws of any
state, and which transacts no other than
n banking business, rs provided in this
section, has been Incorporated under the
laws of the state i'm which it is located.
which laws require that the stockholders
shall be individually liable for the redemp-
ton of its circulating notes to the full ex-
tent of their ownership of stock, and that
such laws require that the circulating
notes thereof shall constitute first lien
upon all the assets of the bank, and also
that such laws require said bank To keep
on deposit ut all times with an official of
the state authorized by law to receive and
hold the same a guarantee fund as rcquir-
ed in the fourth paragraph of this section,
they shall issue to said bank a certificate
to that effect. Thercupon said bank may
issue its notes as provided, and there
AFTER the tax OF 10 per cent heretofore i'm
posed by law upon circulation of the notes
of state banks shall not be assessed or col
lected upon the notes of such banks I'M
less it appears that said hank 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 rc-
manned so for 80 days, or that the hank
has not kept ON deposit with the state Off
cial authorized by law to receive and hold
the same guarantee fund rs required in
the fourth paragraph of this section, OF
that said hank has not promptly redeemed
its notes in lawful money at par on de-
mand ut its principal office or at one or
more of its branch offices, IL it has branch
offices, and that no person or corporation
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 rs
now provided by law