The Providence news. (Providence [R.I.]) 1891-1906, 1894-12-22
CURRENCY BILL
As a Substitute for the Car
Isle Measure.
Regulation OF State Banks Differs
From the Original Proposition.

snces between the Democratic members OF
che house committee on banking and cur
rency, and with tho approval of the secre-
tary of the treasury Mr. Springer yester-
day introduced q substitute for the Car.
iislo currency bill It is substantially a
new measure, although some of the sec.
tions OF the original measure are retained
In the new BILL The new bill 10 arranged
theses. The first section Is as follows:
(A) That $50 much OF all acts and
parts Of acts as require. or authorize, the
deposit of the United States bonds to So
cure circulation notes issued by national
banking associations (or ~ require such
associations to deposit or keep on deposit,
United States bonds for any purpose, ex-
cept as security for public money be and
the same are hereby repealed las to asso-
Citations taking our circulation under this
act), and such notes shall not contain the
Statements that they are so secured.
Section is changed 80 that banks can
not only deposit legal tenders to secure
circulation. but also currency certificates
issued under section bi93 OF the revised
statutes OF the United States.
Section 3 Is retained entire, except that
Its provisions are restricted TO apply TO ma
tional banking associations taking out
circulation under this act"
Section inserts "the comptroller Of the
currency as the officer to designate tbs
place whore notes are to be redeemed
Provisions For Collecting Tax.
In scction5 provision is make for keep
Ing up this safety fund, and In addition to
the terms OF the original bill 1t Is provided
that "the COLLECTION Of said tax OF one
fourth of per cent for each half year
shall be resumed and continued until the
said fund is restored TO an amount equal to
b per cent upon the total circulation
outstanding. All circulating notes Of
failed national banks not redeemed on
presentation to the treasury OF the United
States. or an assistant treasury OF the
United States, shall bear interest ut the
rate of 8 per cent per annum from the
date Of the suspension Of the bank until
81 days after public notice has been given
that funds are on hand for the rcdemp.
tion, and such notes shall constitute first
lien upon all moneys thereafter received
into the safety fund"
Section o, allowing the secretary Of tho
treasury to invest money In the safety
fund In bonds, Is the same as In the origi-
nal bill
Section lis entirely new and takes the
place OF a section which has been elimi-
mated. The new section Is as follows:
se.tion z. That every national banking as
sociation heretofore organized and having
bonds on deposit 10 secure circulation may
withdraw such bonds upon the deposit of law
full money Of the United States, now provided
by law, and thereafter such association may
take gut circulation under this act. and be en-
titled % all the rights, privileges and immuni-
ties herein conferred
Section 8 specifies that the portion of
tho national banking act to he repealed is
limited to so much OF section 10 las di-
rects the secretary of tho treasury to re-
ceive deposits of gold and to issue prtin-
Gates thereon"
Section is substantially tho same as in
Section 10. providing for state banks, Is
also the same as In the original bill, ex-
cept that In the restrictions on state banks
a new provision Is made that the guaranty
fund maintained by them may include
currency certificates issued under section
1913 OF the revised statutes"
Concerning State Banks.
An entire new provision Is added as to
state banks, as followsi
Whenever the secretary OF the treasury and
the comptroller OF tho currency shall be
satisfied that any banking corporation duly
organized under the laws of any state and
which trans acts no other than banking busi.
ness, as provided In this section, has heen In.
corporated under the laws OF the state
in which IL Is located, which laws re
quire that the stockholders shall be individ-
ually liable for the redemption Of It's circuls-
ting notss 20 tbs full extent OF their ownership
Of stock, and that such laws require that the
circulating notes thereof shall constitute a
first lion AL assists OF the bank, and also that
such laws require said bank 10 keep ON deposit
at all times with an official Of tho state, author.
ize1 by law TO receive and hold the same, n
guarantee fund "a required in the fourth para
graph Of this section, they shall issue to said
bank a certificate to that effect Thereupon
said bank may issue It's notes "a provided in
this act, and thereaft n the tax OF 10 per cent
n heetofore imposed by lrw upon circulation
OF the notes of state banks shall not be as
scssod or collected upon the notes OF such
bank untilt Il appears that said bank has issued
circulating notes in excess OF 20 Ter cent OF its
paid up and unimpaired capital, or that its
capital Is impaired and has remained
70 for 20 days, OF that tho bank
has not kept on deposit with the state
official authorized by law ia receive and hold
the same as n guarantee fund rs required In
the fourth paragraphof of this section, or said
h-nk has not promptly redeemed its notes in
lawful money at par, or at one or more OF its
branches, and thstro person OF corporation
other than " q ,an,S issuing such notes in vio-
iation of the p'ovision OF this act shall be liable
60 the tax of 10 pee cent upon the circulating
notes Of stats banks as now provided by law
Most Of section III is new and Is as fol-
lows, the new portions being In paren-
theses.
That any banking association organized
under the laws OF any state may deposit with
the treasurer Of the United States legal tender
notes aud geceive certificates therefor In the
manner provided I'm section 5i03 revised
statutes OF the United Statcs) the secretary Of
the treasury may, under proper rules and regu-
lations 90 bc established by him, permit such
banks 90 procure and use In ths preparation OF
their notes the paper used in printing United
States securities; but no state bank shall print
or cngrave Its notes In similitudo Of United
States note. OF certificate, OF national bank