The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1894-12-14
CURRENCY REFORM.
Annual Report Of the Secretary Of
the Treasury.
Mr. Carlisle's Plan for Reform of the Cur
rsncy-A New Banking System Pro-
posed--Its Outlines Set Forth
Revenue Receipts.

| WASHINGTON. Dec. 5.-The annua
report of the secretary of the treasury
on the state of the finances of the ma
ton was sent to congress yesterday
The most important feature of Mr.. Car
isles report is his discussion of tn,
subject of currency reform, in th'
plans of a new system OF currency are
set forth in detail.
The secretary reviews the circum
stances leading up 20 the first $50, 900.
600 issue of bonds as a means of re
plenishing the gold reserve, yielding
Sas, ,6G0.9 OF, and increasing the free golC
in the treasury to Sl07. .4f6.S02. The
since the redemption of specie pay
ments was on the eth day of August
1894, when, by reason of withdrawal:
in the redemption OF notes, it was re
duced to S52. 1880 After that it wa:
slowly replenished by voluntary ex.
changes of gold coin for United State:
notes by the banks and by small re
ceipts of gold in payment of dues tC
the government until the 14th of No
vember, 1891, when it reached the sum
of SCI, ,S7S.314.
The secretary then says:
| Ihave prepared the outlines of 4 plan which
| in my opinion, will relieve the government tC
u great extent from the burdens now imposed
| upon it. secure within reasonable time a safe
and elastic national and state bank currency
and result ultimately in the permanent retire
ment OF United States legal tender notes OF
both classes. 1t Is. in brief as follows:
First-Repeal all laws requiring, or author
| iZing the deposit OF United States bonds as Sc
curity for circulation
| Second-Permit national banks to issue notes
/ to an amount not exceeding - per centum o
! their paid up and unimparei capital, but re-
qui.e each bank before receiving notes to de-
| pOsit guarantee fund. consisting of United
| States legal tender notes. including treasury
| notes of 1890 to the amount of 30 per cent. OF
| the circulating notes outstanding to be main
| tanned at all times, and whenever a bank re-
tires its circulation. in whole or in part. its
guarantee fund to be returned to it in proper
| tion to the amount OF notes retired.
Third-Retain the provision Of the law max
| ing stockholders individually liable and pro-
vide that the circulation notes shall constitute
first lien upon all the assets OF the bank.
Fourth-Imposc 4 tax of x of per centum
per annnm, payable semi-annually. upon the
average amount of notes in circulation to de-
supervision. cancellation. etc.
Fifth-No national bank note to be of less
denomination than ten dollars. and all notes OF
the same denomination to be uniform in design;
but banks desiring to redeem their notes in
gold may have them made payable in that coin.
The secretary OF the treasury to have authority
TO prepare and keep on hand ready for issue
upon application reserve of blank national
bank notes for each banking association having
circulation.
Sixth-Require each national banking aSso-
citation to redeem its notes at its own Office. or
at its own official agencies to be designated
by it.
Seventh-To provide n safety fund for the
immediate redemption of the circulating notes
of failed banks. impose tax OF CbIank) per
centum per annum upon the average circula-
tion of each bank until the fund amounts to )
per cent of the total circulation outstanding.
Require each new bank and each bank taking
out additional circulation to deposit its proper
proportion of this fund before receiving notes.
When bank fails its guarantee fund held on
deposit to be paid into the safety fund
notes, and if this fund shall be impaired
by the redemption Of the notes of
failed national banks, and the Immediately
available cash assessor such banks are insult
ficient to establish the fund it shall at once be
made good by pro rata assessments upon the
outstanding circulation; but there shall be a
first lien upon all assets OF failed bank or
banks to reimburse the contributing banks.
The safety fund may be invested in outstand-
ing United States bonds. having the longest
time to run. the bonds and the interest upon
them to be held as part OF the fund and sold.
when necessary, to redeem notes of failed
banks.
Eighth-Repeal the provisions of the reor-
ganization and extension act OF July L. 1892.
imposing limitations upon the reduction and
increase of national bank circulation.
Ninth-Repeal all provisions of the law re-
quiring banks TO keep 4 reserve on account OF
deposits.
Tenth-The secretary of the treasury may.
in his discretion use any surplus revenue OF
the United States in the redemption and re-
tirement of United States legal tender notes,
but such redemptions 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 system herein pro-
posed.
Eleventh-Circulating notes issued by a
banking corporation duly organized under the
laws of any state. and which transacts no other
than banking business. shall be exempt from
taxation under the laws of the United States,
when it is shown to the satisfaction of the Sec
retary OF the treasury and the comptroller OF
the currency:
standing its circulation notes in excess of 75
percentum of its paid up and unimpaired capi-
tai
,. That its stockholders are individually liza
bic for the redemption OF its circulating notes
to the full extent of their ownership of stock.
3. That the circulating notes constitute by law
first lien upon all assets of the bank
4. That the bank at all times keep the guar
antee fund in the United States legal tender
notes. including treasury notes OF 1890, equal
to 30 per centum Of its outstanding circulating
notes: and,
s. That it has promptly redeemed it's notes
on demand at its principal office. or at one or
more OF its branch offices, il it has branches.
Twelfth-The secretary OF the treasury may,
under proper rules and regulations to be estab-
lished by him. permit state banks to procure
and use in the preparation of their notes and
distinctive paper used in printing United States
securities; but no state bank shall print or en-
grave its notes in similitude OF United States
note or certificate, or national bank notes.
Whatever may be the objections to the issue
and circulation OF United States legal tender
ground, it has become so Incorporated into our
currency system and constitutes so large n
part OF our active circulation that it could not
be suddenly withdrawn without produc-
ing in the present state OF our laws
considerable disturbance in the fiscal
OptTdllOiiS VI tHe EONtTHtnent as Ncli
as the business o. the people. and
therefore, the plan now suggested provides for
its gradual retirement oy the use OF surplus
revenues hereafter received. n process which
will probably require several years for its COM
pletion. As these NOES cannot be retired
until other forms of currency to an equal
amount have taken their place there will be
neither forced contraction or expansion of
the circulation on account of the change.
As the plan suggested proposes TO exempt
the government of the United States from all
liability for the redemption OF national bank
notes and place the sole responsibility upon
the banks themselves. guaranteed fund OF
not less than 30 per centun upon the OutStand-
ing circulation is regarded a very proper
and necessary feature of the system.