The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1894-12-19

rotary Carlisle presented his financial
bill today to the committee on banklng
and currency. In the first section all acts
regulating the deposit Of United States
bonds to secure circulating notes of na-
tional banks are repealed.
Section provides for the issuing OF cir
culatiOn notes to a national bank equal to
20 per cent. Of the paid up and unim-
paired capital upon depositing legal tender
notes with the United States treasurer
equal to 80 per cent. OF the circulating
notes applied for. These circulating notes
shall be in denominations of so and null
tiplies Of ten, and shall be uniform in
design.
Section 8 levics a duty of Il per cent.
for each half year upon the average
amount Of a banks notes on its own notes
in circulation.
Section provides for the mode OF re-
demption and retirement Of a banks cir
culation.
Section 5 creates the safety fund for
prompt redemption Of circulating notes OF
failed national banks Each bank shall
pay u the United States treasurer in the
months Of January and July in e3cn year
tax Of 4 per cent. for each half year,
upon the average amount Of its circulating
notes outstanding, until said fund amounts
to per cent Of the total amount of
national bank notes outstanding, and there
after said tax shall cease. A bank retiring
or reducing its circulation shall not be
entitled to withdraw any Of this fund.
The mode Of procedure in case Of a bank S
failure Is outlined.
Section 8 allows the secretary of the
treasury to invest money belonging to the
safety funds in United States bonds.
IN a hat On TrY1rr
national banks now having bonds on de-
p0sit may withdraw tham and substitute
the 80 per cent. guarantee fund.
Section repeals previous acts conflict
ing with this measure.
Section provides that the secretary Of
the treasury may in his discretion redeem
and retire United States legal tender
notes; that no United states or treasury
notes, authorized by the act of July Il,
1890, Of a denomination Of less than $40,
shall be issued.
Section 10 states that banks duly or
g3nized under the laws Of any state,
which transact NJ other than a banking
business. shall be exempt from taxation
under the laws Of the United States. under
certain conditions regulating state banks
Section II provides that state banks
shall not issue notes similar in design TO
United States notes or certificates, or ma
tional bank notes.
Mr.. Springer has introduced in the house
Secretary Carlisle's banking bill. It was
ordered 20 be printed and referred TO the
committee on banking and currency.
Horace Whites Bill.
The following is a synopsis of the bill
presented to the banking and currency
committee by Horace White:
The first section provides that no bank
ing association shall be required to de-
post United States bonds either as pre-
hminary TO the commencement of banking
business or for the security of circulating
notes 10 be hereafter issued.
Sec provides that in lieu of the de
posts Of bonds each national banking as
ISOLATION shall be entitled to receive cir
culating notes from the comptroller to
the amount of (blank) per cent. of its
paid-up, unimpaired capital, upon paying
70 the treasurer Of the lawful money TO
the amount of per cent. Of such circulat-
ing notes and thereafter a tax at the
rate OF y OF l per cent. per annum upon
the average amount of its circulation for
the year.
The 1 per cent a : proceeds Of the tax
are to constitute aarantee fund for the
redemption Of notes of insolvent national
banks and the tax is to be collected until
the fund amounts to not less than per
cent. of the entire circulation issued This
fund Is also to be in addition of the 3
per cent redemption fund now provided
by law.
Sec. 8 provides that in addition to the
amount Of the circulating notes provided
for. each association shall be entitled to
receive from the comptroller circulating
notes TO the amount of % per cent. of its
paid-up, unimpaired capital, upon paying
70 the treasurer 2 per cent. Of such addi-
tonal circulation and that the tax OF y Of
per cent per annum upon the average
amount Of the same outstanding and an
additional tax at the rate of per cent
per annum upon the amount Of such ad-
ditiOnal circulation outstanding for the
year, all Of which sums are to be a part
of the guarantee fund.
Sec. 6 is devoted 10 the insolvency Of
national banking associations, and it is
provided that when such insolvency shall
be ascertained in the case Of any particu-
lar association its outstanding circulating
notes shall be redeemed by the treasurer
OF the United States out Of the guarantee
fund, if that be sufficient, and if not suffi-
cient out of any fund in the treasury.
After the loss on the account of any par
ticular failure has been made good to the
guarantee fund the United States is first
TO be paid for all advances made.
Sec. provides that associations apply
ing for circulation after the first payments
into the guarantee fund shall have been
made. may receive circulating notes from
the comptroller upon paying into the fund
a sum bearing a ratio TO the circulation
applied for and allowed, which the guaran-
tee fund bears to the total circulation out
standing.
Sec. provides that whenever bank
notes are issued TO any association under
this act it shall be the duty Of the secre-
tary Of the treasury to cancel legal tender