Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-12-11
The Secretary of the Treasury For
mulates His Financial Ideas.
PRESENTED TO FHE HOUSE COMMITTEE
It Removes the Tax From State
Bank Notes.
TEXT OF THE MEAS URE

Following is a copy of the financial bill
| prepared by Secretary Carlisle and pre-
| sented by him today to the committee on
| banking and currency:
An act to amend the laws relating to
national banking associations, to exempt
the notes of state banks from taxation
| upon certain conditions and for other pur-
poses.
Be it enacted by the Senate and House
| of Repre- esentatives of the United States Of
| America, in Congress assembled, that all
acts and parts of acts which require or
authorize the deposit of United States
| bonds to secure circulating notes issued by
national banking associations be and the
same are hereby repealed. and such notes
hereafter prepared shall not contain the
| statement that they are so secured.
Bank Circulation.
Sec. 2. That any national banking asso-
citation organized as now provided by law.
| and any national barking association here
| after organized, may take out circulating
| notes to an amount not exceeding 75 per
| cent of its paid-up and unimpaired capital
upon depositing with the treasurer of the
| United States legal tender notes, including
| treasury notes issued under the act ap-
proved July IA, 1890, ell titled AN act direct
ing the purchase of silver bullion and the
issue Of treasury notes thereon, and for
other purposes" as a guarantee fund equal
to 80 per cent of the circulating notes ap-
piled for. The association making such de-
posit shall be entitled to receive from the
controller of the currency circulating notes
in denominations of ten dollars and multi
pies thereof in blank, registered and coun-
telsigned, as provided by law, and all such
notes, together with the circulating notes
of national banking associations now out
standing, shall continue, and are hereby
declared to be, first lien upon all the as
sets of the association issuing the same.
All circulating notes hereafter furnished to
national banking associations shall be uni
form In design, but any association desr-
ing to redeem its circulating notes i'm gold
may have them payable In that coin; and
the Secretary of the Treasury is hereby
authorized and directed to have prepared
and keep on hand ready for delivery on
application q reserve of blank notes for
each national banking association having
circulation, but such reserve for each bank
shall at no time be in excess of the differ
ence between the amount of it's notes then
| outstanding and the total amount which 1t
is by this act authorized to receive.
Sec. 3. That in lieu of all existing taxes,
each national banking association shall pay
to the treasurer of the United States. in
the months of January and July each year.
duty of one-fourth of one per centum for
each half year upon the average amount Of
its notes in circulation, and in computing
such averages all notes issued by such as
sociation and not actually retired from cir
culation in the manner hereinafter pro-
vided shall be included.
Redemption of Notes.
Sec. 4. That each national banking asso-
citation shall redeem its notes at par in
lawful money of the United States on
presentation at its own Office or at it's own
Office and at such agencies as may be
designated by it for that purpose, and
whenever such association desires to retire
the whole or any part of its circulation,
he fo he ShaU ha
to the controller of the currency for cam
collation., and thereupon thirty per centUm
of the amount of such Cancelled notes shall
be returned to the association. Defaced
and mutilated notes and notes otherwise
unfit for circulation, which have been re-
deemed by any association, may be return
ed to the controller of the currency for
destruction and reissue, as now provided
by law.
Sec. s. That, in order to provide a safety
fund for the prompt redemption of the cir
culattng notes of failed national banking
associations, each such association now
organized, or hereafter organized shall
pay to the treasurer Of the United States,
In the months Of January and July I'm each
year, tax of one-fourth of one per CEN
tum for each half year upon the average
amount Of its circulating notes outstand-
Ing, to be computed as herenbefore pro-
vided until the said fund amounts to a
sum equal to five per centum upon the
total amount OF national bank notes out
standing. and thereafter said tax shall
cease. Each association hereafter organ
lied and each association applying for ad-
ditional circulation shall pay its pro rata
share into the said fund before receiving
notes; but an association retiring or re-
ducing its circulation shall not be entitled
to withdraw any part Of said funds.
When a national banking association be-
comes insolvent its guarantee fund held on
deposit shall be transferred TO the safety
fund herein provided for and applied to the
redemption of its outstanding notes and in
case the said last mentioned fund should at
any time be impaired by the redemption Of
the notes of failed national banks and the
Immediately available assets OF said banks
are not sufficient to reimburse IL, said fund
shall be at once restored by pro rata as
sessments upon all the other associations to
the amount of their outstanding circula-
ton, and the association so assessed shall
have first lien upon the assets of each
failed bank for the amount properly charge
able to such bank on account Of the re-
demption of its circulation.
To Invest the Safety Fund.
Sec. 6. That the Secretary Of the Treasury
may from time to time invest any money
belonging to the safety fund i'm United
States bonds having the longest time to
run, and the bonds so purchased, and the
interest accruing thereon, shall be held as
part of the said fund. Such bonds may be
sold when necessary and the proceeds used
for the redemption of the circulating notes
of failed national banks.
Sec. Z. That every national banking as
soclation heretofore organized and having
bonds on deposit to secure circulation shall,
on or before the 1st day of July, 1895, with
draw such bonds and deposit with the
treasurer of the United States guarantee
fund, consisting of United States legal
tender notes, including the treasury notes
issued under the act of July II. 1880, equal
to 80 per cent OF its outstanding circula-
ton at the time of such withdrawal and
deposit, and all Jaws requiring such associ-
alton to deposit or to keep on deposit with
the treasurer of the United States bonds Of
the United States for any purpose other
than as security for public moneys shall be
and are hereby repealed from and after the
said date.
Sec. 8. That sections nine and twelve OF
the act, approved July II, 1SS2, entitled
IAN act to enable national banking asso-
Citations to extend their corporate exist
ence and for other purposes" and section
thirty-one of the act. approved June 8.
1854, entitled AN act to provide a ma
tional currency, secured by a pledge OF
United States bonds, and to provide for
the circulation and redemption thereof"
and all acts and parts OF acts amendatory
thereof, be and the same are hereby re-
pealed.
To Retire United States Notes.
Sec 0. That the Secretary Of the Treas
ury may, I'm his discretion use from time to