The herald-advance. (Milbank, S.D.) 1890-1922, 1894-12-28
NEW CURRENCY BILL
A SUBSTITUTE FOR SECRETARY
CARLISLE'S MEASURE,
Among Other Changes, 1t Relieves
the National Banks From the Ar
bitrary Provision of Organizing
Under the New system.

the National Banks From the Ar
bitrnry Provision of Organizing
Under the New system.
Washington, Dec. 23.-After confer
ences between the Democratic mem
bers of the house committee on bank
ing and currency, and with the APP
proval Of the secretary of the treas |
ury, Mr.. Springer introduced substi- |
tute for the Carlisle currency bill. 1t
is substantially new measure, al
though some of the sections of the
original measure are retained in the
new bill The new bill is arranged so
as to show the new features in pa
rentheses. The first section is as fol
lows:
That $50 much of all acts and parts
of acts as require or authorize the de-
posit Of United States bonds to secure
circulating notes issued by national
banking associations TOR as require
such associations to deposit or keep
on deposit United States bonds for
any purpose except as security for
public money! be and the same here
by is repealed (as to associations TAX
ing out circulation under this acD, and
such notes shall not contain the state
| ment that they are so secured.
Section is entirely lew, and takes
| the place Of section which has been
eliminated 1t is as follows:
Section THAT every rational bank
ing association hereafter organized
and having bonds to deposit to secure
circulation, may withdraw such bonds
upon the deposit of lawful money or
the United States, now provided by
| law and thereafter such association
may take out circulation under this
act and be entitled to all the rights,
privileges and immunities herein con-
| ferred
Section specifies that the portion
of the national banking act to be re-
pealed is limited to so much of sec
ton II "as directs the secretary OF
| the treasury to receive deposits OF
gold and to issue certificates thereon"
Section is substantially the same
as in the original bill.
Section 10, providing for state banks,
is also the same as in the original bill,
except that in the restrictions on state
banks new provision is made that
the guaranty fund maintained by them
may include ''curreI cy certificates is
sued under section 5193 of the Re
vised Statutes"
"Wheneyer the secretary Of the
treasury and the controller of the cur
rency shall be satisfied that any bank
ing corporation duly organized under
the laws of any state, and which
,ransacts no other than a banking
business. as provided in this section,
J has been Incorporated under the laws
of the state in which it is located,
: which law requires that the stock
holders hall be individually liable for
the redemption of its circulating notes
to the full extent of their ownership
of stock and that such laws require
} that the circulating notes thereof shall
constitute a first lien upon all the as
, sets of the bank and also that such
laws require such bank to keep on de-
posit at all times with an official OF
the state authorized by law tc
receive and hold the same
:. guarantee fund as re
, quired by the fourth paragraph OF
: this section they shall issue to saie
bank a certificate to that effect There
!. upon said bank may issue its notes a.
provided bv this act, and thereafter
the tax Of 10 per cen.. heretofore i'm
posed by law upon the circulation o
!, the notes of state banks, shall not b.
), assessed or collected upon the note!
: of such bank, unless it appears tha
a said bank has Issued circulating note
: in excess of 1o per cent of its paid III
i and unimpaired capital, or that it
capital is impaired and has RENAME,
4 SO for thirty days, or that the banl
Y has not kept on deposit with the stat
O official authorized by law to receiv
n and hold the same, a guarantee fun,
). as required in the fourth paragraph
e of this section, or that said bank ha
not promptly redeemed its notes i
t lawful money at par on demand 1T it
% principal office or at any or more Q
% its branch offices, If it has branch ol
d fees, and that no person or corpora
4 ton. other than the bank issuing sue
Is notes, in violation Of the provisions G
% this act, shall be liable to the tax Q
II 10 per cent upon the circulating note
It Of state banks as now provided b
70 law"