Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1894-12-13
CURRENCY REFORM.
Annual Report of the Secretary Of
the Treasury.
HIr. Carlisle's Plan for a Reform of the Cur
rency-A New Banking System Pro-
posed-Its Outlines Set Forth
Revenue Receipts.

report Oh Gnc secretary Oh The treasury
on the state of the finances of the ma
ton was sent to congress yesterday.
The most important feature of Mr.. Car
isles report is his discussion of the
subject of currency reform, in the
course of which the administra TONS
plans of a new system of currency are
set forth in detail.
The secretary reviews the circum-
stances leading up to the first $50, OOO,-
900 issue of bonds as a means of re-
plenishing the gold reserve, yielding
$50, 66O. 917, and increasing the free gold
in the treasury to $1O7, 446, S02. The
lowest point reached by the reserve
since the redemption Of specie pay
ments was on the 18th day of August,
1894, when, by reason of Withdrawals
in the redemption of notes, it was re-
duced to $50, 1S9, 500. After that it was
slowly replenished by voluntary ex-
changes of gold coin for United States
notes by the banks and by small re-
ceipts of gold in payment of dues to
the government until the 18th Of No
ISvember, 1894, when it reached the sum
of $61, 1878, 374.
The secretary then says:
have prepared the outlines of plan which,
in my opinion will relieve the government to
great extent from the burdens now imposed
upon it, secure within reasonable time safe
and elastic national and state bank currency,
and result ultimately in the permanent retire
ment of United States legal tender notes of
both classes. It is, in brief, as follows:
First-Repeal all laws requiring, or author
izing the deposit Of United States bonds as Sc
curity for circulation.
Second-Permit national banks to issue notes
to an amount not exceeding rs per centum of
their paid up and unimpaired capital, but re-
quire each bank before receiving notes to de-
1acif INTO fund or ino Of
States legal tender notes, including treasury
notes of 1890 to the amount of 80 per cent. of
the circulating notes outstanding to be main
tanned at all times, and whenever a bank re-
tires its circulation, in whole or in part, its
guarantee fund to be returned to it in proper
ton to the amount of notes retired.
Third-Retain the provision of the law max
ing stockholders individually liable and pro-
vide that the circulation notes shall constitute
first lien upon all the assets of the bank
Fourth-ImpoSe a tax of u of per centum
per annnm, payable semi -annually, upon the
average amount of notes in circulation to de-
fray the expenses of printing notes, Official
supervision, cancellation, etc.
Fifth-No national bank note to be of less
denomination than ten dollars, 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 for issue
upon application reserve of blank national
bank notes for each banking association having
circulation.
Sixth-Require each national banking asso-
citation to redeem its notes at its own office, or
at its own official agencies to be designated
by it.
Seventh-To provide safety fund for the
immediate redemption of the circulating notes
of failed banks, impose tax of (blank) per
centum per annum upon the average circula-
ton of each bank until the fund amounts to 5
per cent. of the total circulation outstanding.
Require each new bank and each bank taking
out additional circulation to deposit its proper
proportion Of this fund before receiving notes.
When a bank fails its guarantee fund held on
deposit to be paid into the safety fund
and used in the redemption of its
notes, and if this fund shall be impaired
by the redemption of the notes of
failed national banks, and the Immediately
available cash assets of such banks insult
fcient to establish the fund, it shall at once be
made good by pro rata assessments upon the
other banks, according to the amounts of their
outstanding circulation; but there shall be
first lien upon all assets of failed bank
banks to reimburse the contributing banks.
The safety fund may be invested in outstand-
ing United States bonds, having the longest
time to run, the bonds and the interest upon
them to be held as part of the fund and sold,
when necessary, to redeem notes of failed
banks.
Eighth-Repeal the provisions of the reor-
gan1Zat1On and extension act Of July IL, 1892,
imposing limitations upon the reduction and
increase of national bank circulation.
Ninth-Repeal all provisions of the law
curing banks TO keep a reserve on account OF
deposits.
Tenth-The secretary of the treasury may,
in his discretion, use any surplus revenue of
the United States in the redemption and
tirement of United States legal tender notes,
but such redemptiOnS shall not IN the aggregate
exceed an amount equal to 20 per cent. of the
additional circulation taken out by national
and state banks under the system herein pro-
posed.
Notwithstanding notes issued by a
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 it is shown to the satisfaction of the sec
rotary of the treasury and the comptroller of
the currency:
1. That such bank has at no time had out
standing its circulation notes in excess of IS
per centum OF its paid up and unimpaired CAPT.
tai.
2. That its stockholders are individually liza
BILE for the redemption of its circulating notes
to the full extent OF their ownership of stock
8. That the circulating notes constitute by law
a first lien upon all assets of the bank.
4. That the bank at all times keep the guar
antee fund in the United States legal tender
notes. including treasury notes of 1890, equal
to 30 per centum Of its outstanding circulating
notes. and,
5. That it has promptly redeemed its notes
on demand at its principal office, or at one or
more Of its branch ofhceS, if it has branches.
Twelfth-The secretary of the treasury may,
under proper rules and regulations to be estab-
nshed by him. permit state banks to procure
and use in the preparation of their notes and
distinctive paper used in printing United States
securities but no state bank shall print or en-
grave its notes in sinilitude of United States
note or certificate. or national bank notes.