The Cambria freeman. [volume] (Ebensburg, Pa.) 1867-1938, 1894-12-14
CARLISLE'S FINANCIAL BILL.
He Submits 1t 10 the Committee oD BauL
ing and Currency

ing ana currency
WASHINGTON, Dec Secretary Car
Isle has submitted his financial bill to
the committee on banking and currency
1t has also been introduced in the house
1t first provides that all acts and parts
of acts which require or authorize the
deposit of United States bonds to Sc
cure circulating notes issued by national
banking associations be repealed and
such notes hereafter prepared shall not
contain the statement that they are So
secured.
National banks may take ont circu-
lating notes to an amount not exceeding
80 per cent of it's paid up and unim-
paired capital upon depNsiting with the
treasurer of the United States United
States legal tender notes as a guarantee
fund equal TO 30 per cent of the cIrcu-
lating notes applied for, and shall be en-
titled to receive from the comptroller of
the currency circulating notes declared
to be first lien upon all the assets of
the association issuing the same, such
notes to be redeemable in gold, if de
sired.
Each national bank shall pay to the
treasurer of the United States in the
months of January and July each year,
a duty of One-fOurth of l per cent for
each half year, upon the average amount
of its notes in circulation, for a safety
fund for redemption of circulating notes.
Free tax shall continue until the said
fund amounts to a sum equal to o per
centum upon the local amount of ma
tiOnal bank notes outstanding, and there
after said tax shall cease.
Each national bank shall redeem its
notes at par in lawful money of the
United States. Any notes to be retired
shall be forwarded to the comptroller of
the currency for cancellation, and there
upon 80 per cent of the amount of such
cancelled notes shall be returned to the
bank
When a national banking association
becomes insolvent, its guarantee fund
held on deposit shall be transferred to
the safety fund herein provided for and
applied 70 the redemption of its out
standing notes, and in case the last men
toned fund should at any time be i'm
paired by the redemptions of the notes
of failed national banks and the imme-
diately available assets of said banks are
net sufficient to reimburse IL. said fund
shall be at once restored by Pre- rata as
sessments upon all the other assOCia-
tions according to the amount of their
outstanding circulation and the associa-
tiOns so assessed shall have a first lien
upon the assets of each failed bank for
the amount properly chargeable TO such
bdllh Ol dCCOuul VI tue Oh It's
circulation.
The secretary of the treasury may,
from time to time, invest any money be
longing TO the safety fund in United
States bonds having the longest time to
run. and the bonds so purchased and the
interest accruing thereon shall be held
as part of said fund. Such bonds may
be sold when necessary and the proceeds
used for the redemption of the circulat-
inc notes of failed national
The secretary of the treasury. in his
discretion, may use from time to time
any surplus revenue of the United
States in the redemption and retirement
of United States legal tender notes, but
the amount of such notes retired shall
not in the aggregate exceed an amount
equal to 20 per cent of the additional
circulation taken out by national banks
and state banks under the provisions of
this act; and hereafter no United States
.lotes or treasury notes authorized by
the act of July Il, 1890, of less de-
nomination than so shall be issued, and
6s rapidly as such notes of denomina-
tons less than $40 shall be received into
the treasury they shall be cancelled and
an equal amount of notes of like charac-
ter, but in denominations of $40, or mul-
tlplled thereof, shall be issued in their
places, but nothing in this act shall be
so construed as to repeal, or in any
manner affect. the second section of the
said act OF July II, 1890.
The use of circulating notes issued by
banking corporation, duly organized
under the laws of any state and which
transacts no other than a banking bust
ness, shall be exempt from taxation
under the laws of the United States
Certain regulations are provided for
national banks. Laws conflicting in
different ways with the provisions of
the bill are repealed.
The hearing before the house banking
and currency committee was resumed
in the room OF the ways and means COM
mittee. Among those present were Mr..
Horace White of the New York Evening
Post. Mr.. G. Z. Homer of Baltimore,
chairman of the committee Oh national
bankers to formulate the so-called Bal
timOre plan, and Mr.. A. B. Hepburn of
New York. ex-comptroller of the cur
rency. These three gentlemen represent
the currency ideas embodied in the Bal
timore plan and they were present foi
the purpose Of urging the merits of thai
plan.