The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1894-12-12

clrcuiatlOn-thuS permlCClng Sucn 1n-
crease or reduce of reduction within
the limit of IS per cent. of capital to bo
quickly made as emergencies arise.
In additional to the guantee fund re-
quied it is proposed to provide a safety
fund for the immediate redemption Of
the circulating notes of failed banks
by imposing a small annual tax, say
one-half of 1 per cent, upon the aver
age circulation of each bank until the
fluid amounts to per cent. Of the
total circulation outstanding. When
bank fails its guarantee fund is to
be paid into this safety fund and its
notes are to be redeemed in the first
instance from such safety funds thus
authorized; any impairment OF such
fund caused thereby to be made good
from the Immediately available cash
assets of said bank and if these should
be insufficient such impairment to be
made good by pro rata assessment
among the other banks, their contri-
buttons constituting a first lieu upon
the assets of the failed bank in favor
of the contributing banks. AS fur
ther security it is contemplated that
the existing provision fixing theindi-
vidual liability of stockholders is to be
retained and the banks Indebtedness
on account of its circulating notes is
to be made a first lieu on all its assets.
For the purpose of meeting the ex-
pense of printing notes, official super
yison. cancellation and other like
charges, there shall be imposed a tax
of say one-half of per cent. per an
mum upon the average amount of
notes in circulation. 1t is further
provided that there shall be national
bank notes issued of less denomina-
ton than ten dollars; that each nation
al bank exceptin case of failed bank
shank shall redeem or retire its notes
in the first instance at its own office
or at agencies to be designated by it,
and that no fixed reserve need be
maintained on account of deposits.
Another very important feature of
this plan is the exemption of State
banks from taxations by the United
States in cases where it is shown to the
satisfaction of the Secretary of the
Treasury and Comptroller of the Cur
rency, by banks claiming such exemp-
ton, that they havenot had outstanding
their circulating notes exceeding rs
per cent. Of their paid up and unim-
paired capital; that their stockholders
are individually liable for the redemp-
ton of their circulating notes to the
full extent of their ownership of stock /;
that the liability of said banks upon
their circulating notes constitutes un-
der their State law first lien upon
their assets; that such banks have
kept and maintained guarantee fund
in United States legal tender notes,
including Treasury notes of 1890,
equal to 80 percent. of their outstand-
ing circulating notes when presented
at their principal or branch offices.
1t is likely that this scheme may be
usefully amended in some of its de-
tails, but / am satisfied it furnishes a
basis for a very great improvement in
our present banking and currency sys-
tenn. .''
I conclude this communication fully
appreciating that the responsibility
for all legislation affecting the people
of the United States rests upon their
representatives in Congress, and as
suring them thatwhether in accordance
with recommendations Thave made or
not, I shall be glad. to co operate in
perfecting legislation for that which
tends to the prosperity and walfare of
our country.
(Signed.) GROVER CLEVELAND.
Executive Mansion, Dec. 8, 1894.