The Portland daily press., 1894-12-05
CURRENCY REFORM.
Secretary Carlisle's Plan as Outlined in
His Annual Report.

His Annual Report.
Secretary Carlisle. in his annual report,
outlines as follows his scheme of currency
reform:
1.-Repeal all laws requiring or authorlz-
ing the deposit of United States bonds as
security for circulation.
2.-Permit National banks to issue notes
to an amount not exceeding 70 per cent OF
their paid up and unimpaired capital. out
require each bank before issuing notes 10
deposit guarantee fund, consisting OF
United States legal tender notes, including
treasury notes of 1890. to the amount of 30
per cent upon the circulating notes applied
for. This percentage of deposits upon the
circulating notes outstanding to be main
tanned at all times and whenever bank re-
tires its circulation, in whole or in part, It's
guara ntee fund to be returned to it in pro.
portion to the amount of notes retired.
3.-Retain the provision of the law making
stock holders individually liable and pro-
vide that the circulating notes shall oonsti-
tute first lien upon all the assets of the
bank.
4.--Impose tax of one-half of one per
cent um per annum, payable semf-annually.
upon Tile average dmOuut VI AOtOo III SAASu-
latien to defray the expenses of printing
notes. official supervision cancellation, etc.
5.-No national bank note to be of less
denomination than ten dollars. and all
notes of tia same denomination TO be uni
form in design; but banks desiring it may
have their notes made payable in gold. The
Secretary of the treasury to be given
authority to prepare and to have on hand
ready for issue upon application reserve
of blank national bank notes for each bank
ing association having circulation.
6.-Require each national banking assocl-
alton TO redeem its notes at it's own once,
or at its own offices and at agencies to be
designated by it.
ITO provide safety fund for the 1mme-
diate redemption of the circulating notes OF
failed banks, impose a tax of--per ceatum
per annum upon the average circulation OF
each bank until the fund amounts to five
per centum of the total circulation out
standing. Require each new bank. and
each bank taking out additional circula-
tion to deposit its proper proportion OF this
fund before receiving notes. When bank
fails, its guarantee fund held or deposit to
be paid into the safety fund and used IN
the redemption of it's notes, and If this fund
S hall be impaired by the redemption OF the
notes of.failed national banks,an the imme-
diately availa BILE cash assets of such banks
are insufficient to re-establish the 1und, 1t
shall be at once made good by pro rata
assessments upon the other banks, accord
ing to the amount of their outstanding cir
culation; but there shall be first lien upon
all the asserts of the failed banks, 10 L. Inn
burse the contributing banks. The safety
fund may be invested in outstanding United
States bonds having the longest time to
run. the bonds and the interest upon them.
to be held as part CT the fund and sold when
necessary to redeem notes of failed banks.
s.-Repeal the provisions of the reorgani-
cation anu extension act of July 2. 1882,
imposing limitation on the reduction and
increase of national bank circulation.
9.-Repeal all provisions of the law re-
curing banks TO keep reserve on account
of deposits.
10 The Secretary of the Treasury may,
in his discretion, use any surplus revenns
of the United States in the redemption and
retirement Of United States legal tender
notes, but such redemption shall not in the
aggregate exceed an amount equal to 20 per
cent OF the additional circulation taken out
by national and state banks under the sys-
tenn herein proposed.
u,-C irculatfng notes issued by banking
corporation, duly organized under the laws
of any state and which transacts no ot Or
thai, a banking business shall be exempt
from taxation under the laws of the United
States, when it is shown to the satisfaction
of the treasury and comptroller OF the
curr n ~, ID that SUI bank has at no time
had outstanding its circulating notes in ex-
cess Of IS per cent Of its paid-uD and unim-
paired capital: t2l that its stockholders are
individually liable for the redemption OF its
circulating notes to the full extent of their
ownership OF stock: 81 that the circulating
notes constitute by law frs lien upon all
the assets of the bank; "a 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 cent
of its outstanding circulating notes. and ~
that 1t has promptly redeemed its noi4s on
demand at its principal office, or at one or
more of its branch Offices, ii it has branches.
The new plan. the Secretary shows. pro-
yides wider field for the active Giro ulation
of our silver coins and certificates, Rs it is
nroposed that no national bank notes of a
less denomination than ten dollars shall be
issued.