Marshall County independent. (Plymouth, Marshall County, Ind.) 1894-1895, 1894-12-28
NEW CURRENCY BILL,
SUBSTITUTE FOR CARliSlE'S
PLAN INTRODUCED.
Go Many Objections to the Old One
that Mr.. Springer and Secretary
Measure-Ncws Notes.
Some IMPORTANT Changes.

cratic members OF the House committee
on Banking and Currency and with the
approval of the Secretary of the Treas
ury Mr.. Springer introduced substitute
for the Carlisle currency bill. 1t is sub
stantially = new measure. although some
of the sections of the original measure
are retained in the new bill.
Two very important features make their
appearance for the first time in the sub
Stitute. The main one will have the effect
of allowing the national banking system
to run along. without an arbitrary provis-
ion that banks must organize under the
new system. The original Carlisle bill
contemplated that al national banks must
rcOrganiZe under the new plan. This
would have required them 10 surrender
the government bonds which now conSti-
tutc the basis of their circulation. But
the substitute does away with this i'm
perative change.
The other important feature of the sub
stitute is that it does away with the un-
known liability Of banks to guarantee the
notes of all other banks. This feature of
the original bill has been much criticised.
1t contemplated that if national bank
failed its notes would be paid out of its
assets and the general safety fund
made up by all the banks. But if the as
sets and safety fund were insufficient TO
pay the notes of the failed bank, then the
comptroller of the currency WAS 10 make
Il pro rata assessment on all the banks of
the country. The banks said this pros
pective assessment shouldered them with
an unknown risk. In effect ii made them
supply insurance Oh all the notes of banks
IN which they had no concern.
In view of these criticisms the substi-
tute will do away with the assessment
plan. The safety fund" will be the limit
of the joint liability of all the banks for
the failure of individual banks. They
will. however. be compelled to keep up
this safety fund by more rigid provisions
than appeared in the original bill.
The new bill is arranged so as TO show
the new features in parentheses. The
first section is as follows:
la. That $50 much of all acts and
parts of acts rs required or authorized the
deposit of United States bonds to secure
circulating notes issued by national bank
ing associations Tor as required such as
sociations to deposit or keep on deposit
United States bonds for any purpose eX-
cept rs security for public money! be- and
Citations taking out circulation under this
act): and such notes shall not contain the
statement that they are secured
Section > is changed so that banks can
not only deposit legal tenders TO secure
circulation, but also currency certifi-
Gates issued under section 51:3 of the re-
vised statues of the United States"
Section 3 is retained entire. except that
its provisions are restricted TO apply to ma
tional banking associations taking out
circulation under this act"
Section 1 inserts the comptroller of the
currency" as the officer to designate the
place where notes are to be redeemed.
In Relation to the Safety Fund.
In section provision is made for keep
ing up the sa fety fund. and in addition TO
the terms of the original bill it is provided
that 1.-THE collection of said tax of one
fourth of l per cent. for each balf-year
shall be resumed and continued until the
said fund is restored TO an amount equal
to ) per cent. upon the total circulation
outstanding All circulation notes Of
failed national banks not redeemed on
presentation to the treasurer of the Unit
ed States or an assistant treasurer of the
United States shall bear interest at the
rate of per cent. per annum from the
date of the suspension of the bank until
thirty days after public notice has been
given that funds are on hand for their re-
demption. and such notes shall constitute
a first lien upon all moneys thereafter re-
ceived into the safety fund"
Section 6. allowing the Secretary of the
Treasury to invest money i'll the safety
fund-in bonds, is the same as the original
bill.
Section is entirely new and takes the
place of section which has been elm
mated. The new section is as follows:
Section Z. That every national bank
ing association heretofore organized and
having bonds on deposit to secure circula-
ton may withdraw such bonds upon the
deposit of lawful money of the United
States, now provided by law. and there
after such association may take out circu-
lation under this act and be entitled to all
the rights and privileges and immunities
herein conferred"
Section specific. that the porti:n of
the national banking act to be repealed is
limited to so much of section l. las di-
reefs the Secretary of the Treasury to re-
ceive deposits of sold and to issue certif-
Gates thereon
Section 9 is substantially the same as in
the original bill
Section 10, providing for State banks,
is also the same as in the original bill. eX-
cept that in the restrictio:.s on State
banks n new provision is made that the
guaranty fund maintained by them may
include currency certificates issued UNI
der section j, 1913 of the revised statutes"
Section II. Crhat any banking assoc
citation organized under the laws of any
State may deposit with the Treasurer Of
the United States legal tender notes, and re-
ceive certificates therefor in the manner
provided in section >. 1913 of the revised
statutes of the United States anD the
Secretary of the Treasury may, under
proper rules and regulations To be estab-
lished by him, permit such banks To pro-
cure and use in the preparation of their
notes the distinctive paper used in print
ing United States securities; but no State
bank shall print or engraye its notes in