The Mt. Sterling advocate. (Mt. Sterling, Ky.) 1890-current, 1894-12-18
rHr nALr1MoRE pLAN.

The following is synopsis OF the
ill presented to the Banking and
Currency Committee by Horace
White, OF New York:
The first section provides that no
banking association shall be required
10 deposit United States bonds either
as preliminary to the commencement,
of banking business or for the security
of circulating notes to be hereafter
issued.
Section provides that in lieu of the
deposit of bonds each national bank
ing association shall be entitled to re-
ceive circulating notes from the Con-
troller to the amount of -- per cent.
of its paid.up, unimpaired capital,
upon paying to the Treasurer the law
ful money to the amount of 2 per cent.
of such circulating notes, and there
after tax at the rate of one-half of
| per cent. per annum upon the aver
age amount of the circulation for the
year. The l per cent. and proceeds
of the tax are to constitute guaran-
tee fund tor the redemption of notes
of insolvent national banks, and the
tax is to be collected until the fund
amounts TO not less than per cent. of
the entire circulation issued. This
fund is also to be in addition 10 the 5
per cent. redemption fund now pro-
vided by law.
Section provides that in addition
to the amount of the circulating notes
provided for, each association shall be
entitled to receive from the Controller,
circulating notes to the amount of 20
per cent. of its paid-up, unimpaired
capital, upon paying to the Treasurer
per cent. of such additional circula-
ton, and that the tax of one-half of /
per cent. per annum upon the average
amount of the same outstanding and
an additional tax of per cent. per
annum upon the amount of such adj
ditional circulation outstanding for
the year, all of which sums are be a
part of the guarantee fund.
Section 6 is devoted to the insolven-
cy of national banking associations,
and its provided that when such in
solvency shall be ascertained in the
case of any particular association its
outstanding circulating notes shall be
redeemed by the Treasurer of the
United States out of the guarantee
fund if that be sufficient, and if not
sufficient, out of any fund in the
Treasury. After the loss on the &C.
count of any particular failure has
been made good to the guarantee
fund the United States is first to be
paid for all advances made.
Section provides that associations
applying for circulation after the first
payments into the guarantee fund
shall have been made may receive
circulating notes from the Controller
upon paying into the fund sum
bearing a ratio of the circulation ap.
piled for and allowed which the guar.
antee fund bears to the total circula,
ton outstanding.
Section 8 provides that whenever
banks notes are issued to any associ
alton under this act it shall be the
duty of the Secretary of the Treasury
to cancel legal tender United States
notes and Treasury notes to the
amount of 80 per cent. of the bank
notes so issued.
Section 10 authorizes any associa
ton to retire it's circulation or any
part OF it at any time upon depositins
with the Treasurer an amount equa
to the sum desired to be Withdrawn
Section II repeats section 8 of the
act of July II, 1882, and also the por
ton of the act of June 20, 1874, which
which provides that the amount o
bonds on deposit for circulation shall
not be reduced below $4,000, anC
provides that any association hereto
fore organized desiring to withdraw
its circulating notes in whole or il
part may Go SO under the provisions
of the act of June 20, 1874, modified
as above indicated.
Section A, 5, 8 and ii relate to GER
tain minor routine matters.
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