The Dickinson press., 1894-12-08
Highest Of all in Leavenng Power-Lates IS Govt Report
R&!a!.!!! g! RS%asSz RRs;!aHS
ABSOLUTELY PURE

for The ds,sSI5 81 United States bonds az
security for circulation: to permit national
banks to issue circulating notes not exceed.
Ing Ing In ,,ua amount IS per cent Of their paid up
postt with the government as guarantees
including treasury notes Of 1880 sum equal
desire to Issue. ths deposit to As' Be main. sISs
retires any part Of its circulation a proper.
tionate part Of its guarantee fund shall bs
the treasury to prepare and keep on hand
ready for issue In case an increase In cir.
cu!ation is desired blank national bank
to repeal !hc provisions Of the present law
imposing limitations and restrictions upon
banke desiring to reduce or increase their
clrculatlon-thns permitting such increase
or reduction within the limit Of Is per cent
Of capital to be quickly made as emergencies
arise
II addition to the guarantee fund re.
ntssd r s is to psSySs safety
circulating notes Of failed banks by impos. in sss
/ per cent. upon the average circulation Of
per cent Of the total circulation outstanding.
When bank fails Its guarantee fund IL
to be paid into this safety fund md its
aaeee are to sc be sy IN the first in:
mented-any impairment of such fund
caused thereby to be MADE good from tho
timm,ediately ta, available cash assets Of said
such impairment to be made good by pro
rata assessments among the other banks.
their contributions consisting first lien
upon the assets Of failed bank In favor
OF the contributing hanks.
A q Further Security.
As q further security 1t is contemplated
that the existing provision fixing the indiv.
idual liability Of stockholders Is to be re.
count Of Its circulating notes Is to be made
first lien on all Its assets.
For the purpose Of meeting the expense Of
printing notes, official supervision, cnncella.
tion and other like charges there shall be
paid tax say, one-half of per cent per
annum ima!a on, on the a. nversEc amount 9f ~ notes IN
shall be no national BANK notes. % issued speo 81
less denomination than ten dollars. TINT. each
national bank, except IN case OF Il failed
hank shall redeem a. or retire s notes 1
agencies to be designated BY. 1t and that no
hxed reserve need be maintained on account
of deposits.
Another very important feature Of this
plan Is the exemption of state banks from
where it is shown to the satisfaction Of the
Of the currency. by banks claiming such
exemption that they have not had outstand.
ing their circulating note! exceeding Is per
itai: that tf their stockholders are indviduaiiy
Liable for the redemption Of their circu.
lating notes to the full extent Of their
ownership Of stock: that the liability Of
said banks upon their circulating notes con.
stitutes under their state law Al first lien
upon their assets: that such hanks have
kent and maintained guarantee fund in
United States legal tender notes; Including
Of their outstanding circulating notes. and
that such banks have promptly redeemed
their circulating notes when presented at
fa IN
likely that this scheme may be lscfully
amended in some of Its details; but am
satisfied 1t furnishes basis for n very
great improvement In our present banking
and currency system.
conclude this communication fully appre-
ciating that the responsibility for all iegls.
lation affecting the people of the United
States rests upon their representatives in
whether In accordance With recommends.
tions have made or not. shall be glad
to cooperate in perfecting any legislation
that tends to the prosperity and welfare Of
our country. Grover Cleveland.