Daily Kennebec journal., 1894-12-05

cSlN1ng notes To deposit a guarantee luiilt.
consisting of United States legal tender
notes, including treasury notes of 1890,
TO the amount of 80 per cent. upon the
circulating notes applied for. This per
centage of deposits upon the circulating
notes outstanding to be maintained at all
times, and whenevera bank retircs its cir
culation, in whole or in part. its guarantee
fund To be returned To it in proportion to
the amount of notes retired
). Retain the provision of the law
making stockholders individually liable
and provide that the circulating notes
shall constitute first lien upon all the
assets of the bank.
!. Impose tax of one-half of per
centum per annum, payable semi-anmually,
upon the average amount of notes in cir
culation, To dcfray the expenses of print
| ing notes, otficia! supervision, cancella-
| ton, etc.
3. No national bank note TO be of less
denomination than $40 and all notes of
the same denomination too be uniform in
design; but banks desiring it may have
their notes made payable in gold, the
secretary OF the treasury to be given au-
thority to prepare and to have ON hand
ready for issue upon application reserve
of blank national bank notes for each
banking association having circulation.
i. Require each national banking as
sociation to redeem its notes at its own
Office, or ut its own offices and at agencies
| to be designated by it.
Z. To provide u safety fund for the
immediate redemption of the circulating
notes of failed banks, impose tax of -
per centum per annum upon the average
circulation of each bank until the fund
amounts to ) per centum of the total cir
culation outstanding. Require each new
bank, and each bank taking out addi
tional circulation, to deposit its proper
proportion of this fund before receiving
notes. When bank fails, its guarantee
fund held on deposit to bc paid into the
safety fund and used in the redemption of
its notes, and if this fund shall be i'm
paired 10y the redemption of the notes
failed national banks. and the immcdi-
ately available cash assets of such banks
are insufficient to re-cstahlish the fund, il
shall at once be made good by pro rata
assessments upon the other banks, accord
ing to the amount of their outstanding
circulation; but there shall be first lien
upon all the assets of the failed banks to
reimburse the contributing banks. The
safety fund may be invested in outstand-
ing United States bonds having the long
est time to run, the bonds and the interest
upon them, to bc held as part of the fund
and sold when necessary To redeem notes
of failed banks.
s. Repeal the provisions of the rcorgani-
zation and extension act of July II, 1882,
imposing limitation on the reduction and
increase of national bank circulation.
9. Repeal all provisions of the law re
quiring banks to keep a reserve on ac-
count of deposits.
10. The secretary of the treasury may,
in his discretion, use any surplus revenue
Of the United States legal tender notes,
but such redemptions shall not in the ag,
gregatc exceed an amount equal to 10 per
cent. of the additional circulation taken
out by national and state banks under the
system herein proposed.
H. Circulating notes issued by a bank
ing corporation, duly organized under the
laws of any State and which transacts no
other than banking business shall be
exempt from taxation under the laws of
the United States, when it is shown TO the
satisfaction of the treasury and comptroller
of the currency CD that such bank has at
no time had outstanding its circulating
notes in excess of 20 per cent. of
its paid-up and unimpaired capital,
(2) that its stockholders are indi-
vidually liable for the redemption Of
its circulating notes to the full extent of
their ownership Of stock; CD that the cir
culating notes constitute by law first
lien upon all the assets of the bank; ca
that the bank has at all times kept u
guarantee fund in United States legal
tender notes including treasury notes of
1890, equal to 30 per cent. Of its outstanG
ing circulating notes, 90 that it has
promptly redeemed its notes on demand
at its principal office, or at one or more of
its branch offices, if it has branches.
12.-The secretary of the treasury may
in proper rules and regulations to be estab
lished by him, permit state banks to procure
and use in the preparation Of their notes,
the distinctive paper used in printing Uni
ted States securities, but no state bank
shall print or engrave its notes in simili-
tudc of q United States note of certificate
or national bank note.