The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1894-12-04

turned to 1t to permit the secretary OF
the treasury to prepare and keep on
hand, ready for issue in case an in
Icrease in circulation is desired, blank
national notes for each bank having a
circulation, and to repeal the provisions
Of the present law imposing limitations
and restrictions. thus permitting such
increase or reduction within the limit
Of rs per cent Of capital to be quickly
made as emergencies arise. In addi-
tion to the guarantee fund required,
1t is proposed to provide a safety fund
for the immediate redemption of clrcu-
lating notes of failed banks by inpos-
ing small annual tax, say one-half
of one per cent upon the average of
each bank until the fund amounts to
five per cent of the total circulation
outstanding, when bank fails its
guarantee 1und is to be paid into this
safety fund, and its notes are TO be
redeemed in the first instance IRON
such safety fund thus augmented. Any
impairment of such fund caused there.
by to be made good from Immediately
available cash assets of said bank, ana
If these should be insufficient, such i'm,
pairment 10 be made good by pro- |
rata assessment among other banks, |
their contributions constituting a first
lien upon the assets OF the failed bank
IN favor OF tneir contributing BANKS. |
AS further security it is contemplated
that the existing provisions liking the
Individual liaDilsIes OF stock holders. is |
to be retained and a banks indebted |
ness accountot its circulating notes is
TO be made nrst lien upon ali It's assets. |
For the purpose Of meeting the expense
OF printing nOhes, official supervision.
cancellation and like charges, there
shall be paid tax Of say one-half OF
ont per cent per annum, on the average
amount OF notes in circulation. 1t is
furCher provided that there shall be no
national bank notes issued of a less de-
nomination than ten dollars. Another
very Important feature of this plan is
the exemption of STATE banks from tax,
alton by the Uniled States in cases
where 1t is shown to the satisfaction
of the secretary Of the treasury ana
comptroller Of currency by banks claim,
ing such exemption, that they have
not had outstanding their circulating
notes exceeding seventy per cent OF
their paid up and unimpaired capital.
That their stockholders are Individual
~ liable for the redemption of theiI
notes to the full extent
Of their ownership Of stock, and that
rne liability of said banks upon their
notes constitutes under their
state law first lien upon their assets.
That such banks have kept and man,
states legal tender no.es including the
United States treasury notes of 1880,
equal to so per cent of their outstanding
notes, and such banks have
promptly redeemed their circulating1
notes when presented at their principal
his scheme may be usefuly amended
N some of its details, but / am salts
led it furnishes a basis for very great
Improvement in our present banking
md currency system. / conclude this
fully appreciating that
for all legislation affect
ng the people Of the United States
'ests upon their representatives in con-
sress, and assuring them that whether
n accordance with recommendations
lave made or not, l shall be glad to
in perfecting any legislation
hat tends to the prosperity and well
are of our country"