The daily morning journal and courier., 1894-12-12
CURRENCY REFORM SCHEME
SECT. .CARLIsLEPRE HIS HILL
 TO THE HOUSE COMMITTEE.


 It is m Act to Amend tho Laws Relating to
 National Banking Associations-Present
 Bond Deposit to be withdtawn-ro Ex-
 en It State Hanks From aaation.
 Washington, Dec. l.-Secretary Car lisIe to-day presented to the house banking and currency commission bill embodying his currency reform scheme. It is entitled An act to. amend the Jaws relating to national banking associations, to exempt the notes of state banks from taxation upon certain conditions, and for other pur- poses" The bill is as follows:
 Section one repeals all acts and parts of acts which require or authorize the deposit of United States bonds to se- cure circulating notes issued by na- tional banks.
 Section two provides that any nation al bank may take out circulating notes to an amount not exceeding 75 per cent. of its paid-up and unimpaired capital. upon depositing with the United States treasurer legal tender notes, including notes issued under the act approved July IA, 1890, as & guarantee fund equal to 30 per cent. of the notes applied for. The association making such deposit shah receive from the comptroller notes H.. 1F tA,. ANN1 ax,H multiples thereof in blank duly regis tered and countersigned. and all such notes and the notes of national banks now outstanding are declared to be first lien upon all the assets of the as- sociation issuing the same. All notes hereafter furnished to national banks shall be uniform in design, but any as- sociation desiring to redeem its notes in gold may have them made payable in that coin. The secretary is to keep a reserve of blank notes for each na- tional bank having circulation, but such reserve for each bank shall at no time exceed the difference between the amount of its notes then outstanding and the total amount which 1t is au- thorized to receive.
 Section three provides that in lieu of other taxes each national bank shall pay half yearly duty of one-quarter of 1 per cent!
 Section four provides that each bank shall redeem at par in lawful money of the United States on presentation at its office, and also provides for their xryt,o lao I,ryf ha troller of the currency.
 Section five provides for safety fund for the redemption of failed banks notes. No association retiring shall withdraw any part of it's fund, and when a bank becomes insolyent it's guarantee fund shall be transferred to the safety fund and applied to the re- demption of it's circulation, and should it's immediately available assets not be sufficient to redeem its notes the amount shall be made up by assessment on oth- CT associations, and such associations shall have first lien on the banks assets.
 Section six allows the treasurer to in- vest the safety fund in United States bonds having the longest time to run.
 Section seven provides for the with drawal before July, 1895. by the. banks of all the bonds now held by the treas ury, and for the deposit with the treas urer of legal tender notes equal to 30 per cent. of outstanding circulation.
 Section eight repeals sections of the present law providing for the present bond deposit.
 Section nine provides that the secre- tary of the treasury may from time to time retire legal tender notes, but to an extent not to exceed 70 per cent. of-the additional circulation taken out by na- tional banks.
 No more United States or treasury notes of less denomination that $10 shall be issued, and notes of Jess de- nomination than $10 shall be cancelled when received.
 Section ten provides that the notes of state banks shall be exempt from taxa ton when the secretary of the treasury and comptroller of the currency are sat- fsfied that such bank has at no time had outstanding it's notes in excess of 75 per cent. of it's un1mpaired capital; that its stockholders are individually liable for the redemption of its notes to the extent of their ownership of stock; that the notes constitute by law a first lien upon the assets of the bank; that the bank has at ala times kept on deposit, with fully authorized state official, 8 guarantee fund in United States legal tender notes, including treasury notes, equal to 30 per cent. of its outstanding notes; and that it has redeemed its notes at par on demand.
 Section eleven authorizes the secre- tary of the treasury to permit state banks to use for their notes the dis tinctive paper used in printing United States securities, but state bank notes must not resemble United States notes CT certificates or national bank notes.
 MT. Carlisle then explained the bill at length to the committee.
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 Stricken On the Street.
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