The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-12-12
MIR. WHITES BILL.
comprehensive Synopsis of the
Measure.
morrow.

Measure.
Washington, Dec. 1.-THE following
is a synopsis of the bin presented to
the banking and currency committee
by Horace White.
The first section provides that no
banking association shall be required
to deposit United States bonds either
as a preliminary to the commencement
of banking business or for the security
of circulating notes to be hereafter is
sued.
Section provides that in lieu of the
deposits of bonds, each national bank
! ing association shall be. entitled to re-
ceive circulating notes from the comp
ltroller to the amount of (blank) per
cent of it's paid out, unimp3ired CAPT
tai, upon paving to the treasurer of
! lawful money to the amount of 2 per
! cent of such circulating notes and
thereafter a tax at the rate of one
! half of l per cent. per annum upon the
average amount of its circulation for
the year.
The l per cent and the proceeds of
the tax are to constitute q, guarantee
fund for the redemption of notes of in
solvent national banks, and the tax is
( to be collected till the fund amounts to
/ not less than 3 per cent of the entire cir
culation issued. This fund is also to be
| in addition of the per cent. redemp-
ton fund now provided by law.
! Section s provides that in addition to
/ the amount of the circulating notes
provided for, each association shall be
entitled to receive from the comptroller
circulating notes to the amount of %
per cent of its paid up, unimpaired
[ capital, upon paying to the treasurer
n G oil ri a.
| ton. and that the tax of one-half of L
! per cent. per annum on the average
/ amount of the same outstanding and
an additional tax at the rate of 4 per
| cent. per annum upon the amount Of
such additional circulation outstanding
for the year, all of which sums are to
be a part OF the guarantee fund.
! Section 6 is devoted to the insolvency
of national banking associations, and
! it is provided that when such insol-
vency shall be ascertained in the case
Of any particular association, Its out
standing circulation notes shall be re-
deemed by the treasurer of the United
States, out of the guarantee fund, if
that be sufficient, and if not sufficient,
out of any fun6 III the treasury. After
the loss on account of any particular
failure has been made good to the
guarantee fund, the United States is
first to be paid Tor all advances mace.
Section provides that associations
applying for circulation after the first
payments into the guarantee fund
shall have been made. shall receive
circulating notes from the comptroller
upon paying into the fund a sum bear
ing a ratio to the circulation applied
for and allowed. which the guarantee
fund bears to the total circulation out
standing.
section 9 provides that whenever
banknotes are issued to any associa-
ton under this act, it shall be the
duty of the secretary of the treasury
to cancel all legal tender United States
notes and treasury notes to the amount
of so per cent of the banknotes so is
sued.
Section 10-Any association may re-
tire its circulation or any part of it at
any time upon depositing with the
treasury an amount equal to the sum
desired to be withdrawn.
Section - repeats section of the act
of July IL 1892 and also the portion of
the act of June 20, 1874, which pro-
vides that the amount of bonds on de-
posit for circulation shall not be re-
deemed below $4,000. and provides that
any association heretofore organized