The herald., 1894-12-04
THE MESSAGE.
CONTINUED irom Fifth page.l

tVoutuueu from rlttn pkgel
creass their circulation. thus permit
ting such increase OF or reduction
within the limit Of the 75 per cent oi
capital, to be quickly made. 90 smer'
gencies arise. In addition to the
grantee fund required. it is proposed to
provide . safety iund for the immedi.
ate redemption .oi the circulation notes
OF failed banks by impos-
ing Q small annual tax, say one. hall
OF one per cent upon the average circu-
lation OF each bank until the fund
amounts to S per cent Of the total circu-
laiion outstanding.
When bank fails, its guarantee fund
is TO bs paid into this safety fund, and
its notes are to be redeemed in the first
inetauce from such safety fund thus
augmented; any impairment OF such
fund caused thereby to be made good
from the immediate available cash
aseests OF said bank, and il theee sho uld
be insufficient such impairment to bs
made good by pro rata assessment /
among other banks, their contributions
constituting first lien upon the aesets
OF the failed bank In favor Of the con-
tributing banks.
As further secnrity. it is contem-
plated that the existing provision fixing
the individual liability of stock holders
10 to be retained and the banks indebt-
edness on account OF Its circulating
notes 10 to be made q fret lien on eli
ito assets. For the purpose of meeting
the expense Of printing notes, official
supervision, cancellation and other like
charges. there shall be paida tax. say
one-half OF one per cent per annum. on
the average amount of notes In circula-
ton. tits further provided that there
shall be NO national bank notes issued
OF less denomination than $40;
that each national bank, except in the
case OF q failed bank, shall redeem or re-
lease its notes in the first instance at it's
own office or at the agencies to be desig.
mated by it, and that no fixed reserve
need be maintained ON account OF de-
posits.
Another very. important feature Of
this plan is the exem ption Of state
banke from taxation by the United
Staies, in cases where 1t is shown to the
satisfaction OF the secretary of the
treasury and the comptroller OF the cur
rencY by banks claiming such exemp.
ton, that they have not had outstand-
ing their circulating notes exceeding 76
per cent of their paid up and unim-
paired capital.
tina their stock holders are individually
liable for the redemption OF their cir-
GU ating notes to the full extent Of their
ownership OF stock that the liability Of
such banks upon their circulating notes
constitutes. under their state law, the
first lien upon their assete that such
banks have kept and maintained q
guarantee in United States legal tender
notes, including treasury notes of 1890,
equal to so per cent OF their outstanding
circulating notes, and that such banks
have promptly redeemed their circrlat-
Ing notes when presented at their prin-
cipal or branch Offices.
1t is quite likely thntthis scheme may
be usefullv amended in some of the de-
tails, but am satisfied it furnishes the
basis for a a very great Improvements in
our present banking and currency sys.
tenn.
conclude this com muuication, fully
appreciating that the responsibility for
all legislation affecting the people of the
United States rests upon their repre-
sentatives in congress, and assuring
them that " neither in accordance with
recommendations have made or not.
shall be glad to cooperate 10 perfecting
any legislation that can add to the pros-
perity and welfare of our country.
GROVER CLEVELAND.
Executive Mansion, Dec. 3, 1894.