The morning call., 1894-12-12
WHITES BANKING BILL.
The Baltimore Plan of Securing Safe
Circulating Medium,

Circulating Medium.
WASHINGTON, Dec. IL Following Is a
synopsis of the bill presented to the Bank
ing and Currency Committee by Horace
White:
The first section provides that no banking
association shall be required TO deposit United
States bonds either as a preliminary to the COM
mencement OF banking business or for the
security OF circulating notes to be hereafter
Issued.
Section provides that In lieu Of the deposits
of bonds, each national banking association
shall be entitled to receive circulating notes
from the Comptroller TO the amount of - per
cent of It's paidup unimpaired capital, upon
paying to the Treasurer lawful money to the
amount of 2 per cent Of such circulating notes,
and thereafter tax at the rate OF half of l per
cent per annum upon the average amount of its
circulation for The year. The l per cent and
the proceeds Of the tax ale to constitute a
guarantee fund for the redemntion Of notes of
insolvent national banks, and the tax is to be
collected until the fund amounts to not less than
5 per cent OF tile entire circulation issued. This
fund is to be in addition to the 5 per cent re-
demption fund now provided by law.
Section 8 provides that In addition to the
amount of the circulating notes provided for
each association shall be entitled to rec i've
from the Comptroller circulating notes to the
amount of 20 per cent OF its paid. up unlm.
paired capital upon paying to the Treasurer Q
per cent OF such additional circulation, and
the tax of one-half of j per cent per annum
on the average amount OF the same outstanding
and an additional tax at the rate Of pc I. cent
per annum upon the amount OF such additional
circulation outstanding for the year, all of
which sums are to be part OF the guarantee
fund.
Secti on 6 is devoted to the insolvency OF
IA assn ar
vIded that when such insolvency shall BIZ ascer-
tained Ia the case OF any particular association
It's outstanding circulating notes shall be
d. emed by the Treasurer OF the United States
out OF the guarantee fund II that be sufficient,
and IL not sufici Mt. out of any fund IN the
treasury. After the loss on account of any
particular failure has been made good TO The
guarantee fund the United States is first TO be
paid for all advances made.
Section 7-Associations applying for clrcula-
ton aftei the nrst payments into the guarantee
fund shall have been made snail receive circu-
lating notes from the Comptroller upon paying
into the Iund sum bearing ratio TO the cir
culatlon applied for and allowed which the
guarantee fund bears to the total circulation
outstanding.
Section 8 provides that whenever bank notes
are issued to any association under this act il
shall be the duty OF the Secretary of the Treas
uIy 10 cancel legal tender Untfd States notes
and treasury notes TO the amount of 80 per
cent OF the bank notes SO issued
Section 10-Any association may retire It's
circulation or any part OF II at any time upon
depositing with the treasury an amount equal
to the sum desired 10 be withdrawn.
Section IL repeats section 8 of the act of
july IL. 1882. and also the portion of the act OF
June 20. 1874, which provides that the amount
OF bonds on de. Josh Tor circulation shall not be
redeemed below $4,000, and provides that
any association heretofore organized desiring
to withdraw Its circulating notes In whole or In
part may do 40 under the provisions of the act
of June 20, 1874, modified as above indi-
Gated.
Sections 4. 8, 8 and II relate to certain minor
routine matters.