The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1894-12-11

,,ch increase or reduction within
~ ps;mit of rs per cent. of capital, to
E.r,ckIv made as emergencies arise
Re9 a6dIGton to the guarantee fund re
IL II ia proposed TO provide a safety
gun for the immediate redemption of
Iunu a,Eculatip totes of failed banks,
tno tossing a small annual tax, say
W baif of 1 per cent. upon the aver
ON 1 n;rc,1IatiOn Of each bank until the
ss"d amounts to 5 per cent. of the total
lun III tion outstanding. When q bank
cc I ,ts guarantee fund Ia to be paid
ia tn ,his safety fund, and its notes are
wv no redeemed in the first instance
- such safety fund thus augmented,
uO ;mpairment of such fund caused
a. 2Lorohv to be made good from the i'm
uod,atpIv available cash assets OF said
LIZ and if these should be insufficient
Ionb ,moaIrment to be mede good by
- rara assessment among the other
Pc their contributions constituting
e rst lien upon the assets OF the failed
Sonk IN favor of the contributing banks.
Aa a further security IL Is cOntem
rIor,d that the existing provision fixing
~ nd ,vldual liability of stockholders
y RI ne retained, and the banks ipd9bt
o%dnesI on account of its circulating
Co.'S "a TO be made a first lien on all It's
ooaers. Of printing notes, official super
vision. For the purpose of meeting the
ovnonsps cancellation and other like
obsrges. there shall be imposed a tax
If CAV one half of one per cent. per an
mum upon the average amount of notes
IN circulation IG is further provided
thar there shall be no national bank
notes ISSUE d of less denomination than
ton dollars. that each national bank,
oycnpt in case of a failed bank, shall
rode4m or retire it's notes in the first
Instance at its own Off 20 or at agencies
n ne designated by it and thatno fixed
reserve need be maintained on account
of deposits
REPEAL OF STATE BANK Law.
Another very important feature of
this plan is the exemption of State
hanks from taxation by the United
States where iG Is shown to the sails
faction of the Secret ,ry of the Treasury
AMI Comptroller of the Currency by
hanks Ginning such tx mption that
thew have not had outstanding their
circulating notes, eXcet ding rs per cent
of their paid up and untmpaIred CAPT
tai That their stockholders are indi
vidullly liable for the redemption of
their circulating notes to the full *
tent of rhfir ownership of stock that
the liability of said banks upon their
circulating notes constitutes under
their State law a first lien upon their
assets: tnat such banks have kept and
mainJaine1 a guarantee fund In United
States legal tender noes, including
Treasury notes of 1890. equal 20 thirty
per cent of their 0uGsJanIGng circulaG
ing no ca when presented at their prin-
ciDal or branch offices
IL i quite likely that this scheme
NAV De us-Tully amended in rome of It's
details, but [ am satisfied it furnishes a
basis for a very great Improvement in
our presen5 banking ana currency sys
tenn
| conclude this commune alton fully
approaching hat the responsibility for
all l~egisit i n sffec, ing the people of
the Uni5-d States rests upon their r p
rcsenrTofves IN Congress and assuring
them uhaT whether in accordance with
recommended ms l have made, or not,
Ishall be glad To cooperate in perfect
in anv IegiI4ri n mat tends TO the
prospect V of our country.
Signed) GROVER CLEVELAND
Executive Msn-IOn. Dec. 3. 1894.