The daily morning journal and courier., 1894-12-04

or Increase their circulation-thus per-
 hitting such increase or reduction
 within the limit Of seventy-five per cent. of capital to be quickly made in emergencies arise.
 In addition to the guarantee fund re-
 quired, it is proposed to provide safe
 ty fund for the immediate redemption | of the circulating notes of failed banks, by imposing a small annual tax, say one-half of one per cent upon the sv- craze circulation of each bank until the fund amounts to five per cent. of the total circulation outstanding.
 When bank fails its guarantee fund Is to be paid into this safety fund and It's notes are to be redeemed in the first instance from such safety fund this augmented-any impairment of such fund caused thereby to be made good from the immediately available cash assets of said bank, and if these should be insufficient such impairment to be made good by pro rata assessment among the other banks. their contribu- tions constituting a first lien upon the assets of the failed bank in favor of the contributing banks.
 As a further security 1t Is contemp- lated that the existing provision fixing the individual liability of stockholders Is to be retained and the banks ln- debted loss on account of It's circulating notes is to be made first lien on all It's assets.
 For the purpose of meeting the ex- pense of printing notes, official super vision, cancellation, and other like charges there shall be imposed tax of say one-half of one per cent per annum upon the average amount of notes in circulation.
 It is further provided that there shall be no national bank notes issued of a less denomination than ten dollars That each national bank, except in case of failed bank. shall redeem or retire its notes in the first instance at Its own office or at agencies to be designated by 1t. and that no fixed re- serve need be maintained on account of deposltors. -,,
 Another very important feature of this plan Is the exemption of state banks from taxation by the United States in cases where 1t Is shown to the satisfaction of the secretary of the treasury and comptroller of the cur rency by banks claiming such exemp- tion that they have not had outstand- ing their circulating notes exceeding seventy-five per cent of their paid up and unimpaired, capital; that their stockholders are individually liable for the redemption :: of their circulating notes to the full extent of their owner- ship of stock; that the liability of said l banks upon their circulating notes con- stitutes under their state law a first lien upon their assets; that such banks have kept and maintained guarantee | fund in United States legal tender | notes including treasury notes of 1890 | equal to thirty per cent of their out standing circulating notes and that such banks have,,a'promptly redeemed | their circulating notes when presented | at their principal or branch offices.
 It is quite likely that this scheme | may be usefully amended in some of | its details; but I am satisfied 1t fur nishes basis for very great improve ment in our present banking and cur rency system. conclude this com l munication fully appreciating that the responsibility for. all legislation affect ing the people of the United States rests upon their representatives in the congress, and assuring them that whether in accordance with recommen- dattons have maHe or not I shall be glad to cooperate Iin perfecting any legislation that tends to the prosperity and welfare of our country. | '' '' GROVER CLEVELAND,
 Executive Mansion, December. 3, 1894.