Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1894-12-12
CARLISLE'S BILL
For Reforming Cure System Read
to House Committee.
1t Has Many Sections and II Proposes to Do
Great Things.

tlOnS he believed that II the retirement
of greenbacks was a necessity the straight
forward way would be to recall them
under the issue of low rate bonds for
their redemption instead of placing them
under a bushel." +"
Secretary Carlisle addressed the COM
mittee at the conclusion of the hearing
given Mr. White He had come at the
request of the committee TO present the
bill that he had prepared to carry out the
financial plan, which he proceeded TO read
without introduction. Mr. Carlisle's bill
is entitled IAN act to amend the laws re-
lating to the national banking associa-
tions, to exempt notes of state banks from
taxation upon certain conditions, and
other purposes.
Section / repeals all acts and parts of
acts which require or authorizes the de
posit of United States bonds to secure cir
culating notes issued by national banks.
Section provides that any national
bank may take out circulating notes to
an amount not exceeding 75 per cent. of
its paid up and unimpaired capital upon
depositing with the United States treas
urer, United States legal tender notes. in
Guiding treasury notes issued under the
tttb 81 tis IL ip'N' oS a
fund equal to 30 per cent. of the notes ap-
piled for. The association making such
deposit shall receive from the comptroller
of the acurrency, notes in denominations
of so and multiples thereof in blank, duly
registered and countersigned, all such
notes. and notes of national banks now
outstanding being declared first lien
upon all assets of the association issuing
the same. All notes hereafter furnished
to the national banks shall be uniform in
design, and any association desiring to re-
deem its notes in gold, may have them
made payable in that coin, The secretary
of the treasury is to keep on hand IA re-
serve of blank notes for each national
bank having circulation, such reserve
for each bank at no time to exceed the
difference between the amount of its notes
then outstanding and the total amount it
is authorized to receive.
Section 3 provides that in lieu of other
taxes each national bank shall pay half
yearly duty of a quarter of l per cent.
on the average amount of its notes in
circulation.
Section provides that each national
bank shall redeem its notes at par in law
full money of the United States on presen-
tation at its office, and provides for their
cancellation, when desired, by the comp
troller of the currency.
Section provides for a safety fund for
the redemption of notes of failed banks.
Each association is to pay half yearly to
the United States treasurer one-fourth of
per cent. upon the average circulation,
until the fund amounts to per cent. of
the total bank circulation, and then the
tax shall cease. No association retiring
its circulation shall withdraw any part of
its fund, and when a bank becomes insol
vent its guarantee fund shall be transfer
red to the safety fund and applied to the
redemption of its circulation and should
it's Immediately available assets not be
sufficient to redeem the notes, the amount
is to be made up by assessment on the
other associations, and such associations
shall have a first lien on the insolvent
banks assets.
Section 6 allows the United States
treasurer to invest the safety fund in
United States bonds having the longest
time to run.
Section provides for the withdrawal,
before July, 1895, by the banks of all
bonds now held by the treasury and for
deposit with the treasurer of legal tender
notes, equal to 30 per cent. of the out
standing circulation.
Section repeals the sections of the pre-
sent law providing for the present bond
deposit.
Section provides that the secretary
of the treasury may from time to time re
tire United States legal tender notes, not
to exceed 20 per cent. of the additional
circulation taken out by the national
banks. No more United States or treasury
notes of less denomination than SO are to
be cancelled when received into the treas
ury.
Section 10 provides that notes of the
state banks shall be exempt from taxation
when the secretary of the treasury and
comptroller of the currency are satisfied
that such bank has at no time had out
standing its notes in excess of 20 per cent.
of its unimpaired capital; when its stock
holders are individually liable for the re
demption of its notes to the extent of their
ownership of stock; the notes constitute
by law a first lien upon the assets of the
bank: when the bank has at all times
kept on deposit with duly authorized
state official guarantee fund in United
States legal tender notes, including treas
ury notes. equal to 30 per cent. of its out
standing notes when it has redeemed
notes at par on demand
Section II authorizes the secretary of
the treasury to permit state banks to use
for notes the distinctive paper used in
printing United States securities, but
state bank notes must not resemble United
States notes or certificates or national
bank notes.
When he had finished reading
the bill, Mr.. Carlisle explained
that section repealed sections .
and l2 of the act of July II, 1892. Sec
ton of that act authorized the deposits
of lawful money by national banks to
withdraw their deposits of circulating
notes. 1t might not be absolutely neces-
sary. he said to repeal that section, if the
proposed plan was adopted The spirit of
the section was that any national bank
shall not retire in the aggregate more
than So. 900. 600 a month, and having done
so shall not be allowed to increase its cir
culation with six months.
Section l2 of the act of 1882 referred TO
gold bills and their suspension when the
gold reserve fell below 500, coo, 010. Con
cerning this provision, Mr.. Carlisle said it