Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1894-12-07

CaldtlOnS Is Q6SlIeu, Oldnk HttiOhdi
bank notes for each bank having
circulation and to repeal the pro
visions of the present law imposing
limitations aud restrictions upon
banks desiring to reduce or in
crease their circulation, thus per.
hitting such increase or reduction
within the limit Of scveDty-hye
per cent. Of capital to be quickly
made as emergencies arise.
la addition to the guarantee
fund rcqlred 1t is proposed to
provide a safety fund for this i'm
mediate redemption of the circula'
ting notes of failed banks by i'm
posing a small annual tax, say one
half of one per cent, upon The
average circulation of each bank
until the fund amounts to five per
cent of the total circulation out
standing. When bank fails its
guarantee fund is to be paid into
this safety fund, and it's notes are
to be redeemed in the first instance
from such safety funds thus aug
mented. Any impairment OF such
fund caused thereby to be made
good from the Immediately ayalla'
BILE cash assets of said bank, and
If those should be insufficient such
Impairment to be made good by
ratio assessment among other
banks per their contributions con
shutting a first lien upon the assets
of the failed bank in favor OF the
contributing banks.
AS further security it Is con-
templated that the existing pro-
vision fixing it the individual
liability of stockholders is to be
retained, and the banks Indebted
ness on account Of its circulating
notes is to be made first lien on all
It's assets. For the purpose OF
printing notes, official SUPERB lslon,
cancellation and other like charges,
there shall ba imposed a tax Of say
lone.hall of one per cent per annum
upon the average amolnt of notes
IN circulation.
It's further provided that there
shall be no national bank notes Is
sued of less denomination than
ten dollars, That each national
bank, except in case of failed
bank, shall redeem or retire its
notes in the first instance at its
own Office, Or at agencies to be
designated by it, and that no fixed
reserve need be maintained on &C
count of deposits,
Another very important feature
of this plan is that each mention OF
state banks from taxation by the
United States in cases where it is
shown to the satisfaction of The
Secretary OF the Treasury and
COMPTROLLER of the Currency, by
banks claiming such exemption
that they have not had outstand'
ing their circulating notes exceed
ing 10 per cent of their paid up and
unimpaired capital, and their
stockholders are individually liable
for the redemption of their circula-
ton notes to the full extent OF
their ownership OF stock; that the
liability of said banks upon their
circulating notes constitutes, under
their state law, a fest lien upon
their assets; that such banks have
kept and maintained a guarantee
tund in United States legal tender
notes, including treasury notes oil
1890, tqlal to thirty per cent Of
their outstanding circulating NOES
when presented at their principal
or branch Offices.
1t is quite likely that this scheme
may be useiully amended in some
Jof its details, but am satisfied i
furnishes basis for very grea
? improvement in our present bank
ing aud currency system.
: The President deals briefly bu
b. vigorously with tariff and sugar
He says: "The tariff act passed a
r the last session of the Congress
} needs important amendments if
S IS 10 be executed effectively an
) with certainty. In addition to sue
y necessary amendments as will nc
= change rates of duty, am stl
very decidedly in favor of putin
S coal and iron upon the free lis
| s. far as the sugar schedule
d concerned, 1 would be glad, unde
, existing aggravatiOns, to see ever
' particle of ditterential duty in fave
/. of refined sugar stricken out of OF
q tariff law. 1 earnestly repeat bel
n the recommendation l have mad
st ia another portion Of this cor
h. munlcation, that the additions
s duty of one-tenth of a cent pr