The Providence news. (Providence [R.I.]) 1891-1906, 1894-12-04

~ss' eRCa eAAc HOtSt 00l1kHnQ~
ing to be maintained at all times and
whenever bank retires It's circulation, In
whole or in part, its guarantee fund to be-
returned to it IA proportion to the amount
OF the notes retired.
3-Retain the provision OF law, making
stockholders individually liable, and pro-
vide that the circulating notes shall con-
stitute first lien upon all the assets Of
the bank.
4-Impose a tax of one half of one per
centum per annum, payable semi-annual-
ly upon the average amount OF notes il
circulation, to defray the expenses o
printing notes official supervision, can.
collation. etc.
5-No national bank note to be of less
denomination than ten dollars and all
notes of the same denomination to
be uniform in design; but banks desiring
to redeem their notes in gold, may
have them made payable in that coin.
The Secretary OF the Treasury to have
authority to prepare and keep on hand
ready for Issue upon application reserve
of national blank bank notes for each
banking association having circulation.
6-Require each national bank associa-
tion to redeem its notes at its own Offices
or at agencies to be designated by it.
ITO provide o safety fund for the inn
mediate redemption of the circulating
notes of failed bank, impose .
tax OF one half of per centum per
annum upon the average circulation of
each bsnk until the fund amounts to s
per centum of the total circulation out
standing. Require each new bank, and
each bank taking out additional circula-
tion, to deposit its proportion of
this fund before receiving notes. When
a bank fails its guarantee fund held on
deposit to be paid into the safety fund
and used in the redemption of Its notes
and If the fund shall be impaired by
the redemption OF the notes OF the failed
national banks and the available cash
assets Of such banks are insufficient to
to re-establish the fund, it shall at once
be made good by pro-rata assessment
upon the other banks, according to the
amount Of their outstanding circulation,
but these shall be first lien upon
ali the assets OF the failed bank or
banks, to reimburse the contributing
banks. The safety fund may be invested
in outstanding United States bonds hav-
ing the longest time to run, the bonds
and the interest upon them to be held as
part OF the fund and sold when necessary
to redeem notes of failed banks.
S-Repeal the provisions OF re- organiza-
tion aud extension act of July u, 1882,
imposing limitations upon the reduction
and increase OF national bank circula-
tion.
9-Repeal all provisions of law requiring
banks TO keep reserve ON account of
deposits.
10 The Secretary of the Treasury may,
in his discretion, use any surplus revenue
Of the United States in the redemption
and retirement of United States
legal tender, but such redemptions
shall not in the aggregate exceed an
amount equal to 20 per cent. of the addi-
tional circulation taken out by National
and State banks under the system herein
proposed.
1l-Circulating notes issued by bank
ing corporation duly organized under tho
laws Of any Stat, and which transacis
no other than banking business,
shall be exempt from taxation under
the laws OF the United States when it Is
shown to the Secretary of the Treasury
and the Comptroller of the Currency.
THAT such bank has at no time OUT
-. A. -
75 per cent of its paid-up and unimpaired
capital.
2-Thst its stockholders are individu-
ally liable for the redemption OF its circu-
lating notes to the full extent of their
ownership of stock.
-3=That the circulating notes constitute
by law first lien upon the assets OF the
bank.
4-That the bank has at all times Kept
guarantee fund in United States legal
tender notes, including treasury notes OF
1890 equal to 80 per centum of its out
standing circulating notes and
5-That it has promptly redeemed its
notes on demand at its principal Offices or
at one or more of its branch offices If it
has branches.
6-The Secretaryo OF the Treasury may,
under proper rules and regulations to be
established by him, permit State
banks TO procure and use in tho
Preparations OF their notes the
distinctive paper used in printing United
States securities; but no State bank shall
print or engrave its notes in similitude OF
a United States note or certificate or ma
tional bank notes.
Iiallthe national and State banks now
in existence should take out circulation
to the full amount proposed by the au-
thorities, the guarantee fund alone woold
absorb about 100000 OF legal tender
notes ana the national bank safety fund,
when raised TO its full amount might be
made to absorb about S3,50O,OO0 more.
AS the plan suggested proposes TO ex-
empt the government from ali liability for
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