The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1894-12-12
DETAILS OF THE SCHEME.
Secretary CarIisIe's Plan for Reform
of the Currency system.

of the Currency System.
In view Of the foregoing considerations,
and many others that might be urged in
favor Of a reorganization and reformation
Of our paper currency system, 7 have pre-
pared the outlinings of a plan which. in
my opinion. VIII relieve the government
to an extent from the burdens now inn
posed upon it, secure within a reasonable
time a safe and elastic national ana state
bank currency, and result ultimately in
the permanent retirement Of United States
legal tender notes Of both classes. It is.
in brief, as follows:
/. Repeal all laws requiring or authoriz-
Ing the deposit of United States bonds as
security for circulation.
> Permit national banks to issue notes
to an amount not exceeding 15 per centum
of their paid-up and unimpaired capital.
but require each bank before receiving
notes 10 deposit a guarantee fund, consist
ing Of United States legal tender notes, In
GLIDING treasury notes OF 1880, . the
amount Of 80 per cent. upon the circul4-
ting notes outstanding, to be maintained
at all times, and whenever a bank retires
its circulation I'm whole, or in part, its
guarantee fund shall be returned y it
i'm proportion 10 the amount Of notes re-
tired.
s. Retain the provision Of the law max
ing stockholders individually liable, and
provide that the circulation notes shall
constitute a first lien upon all the assets
Of the bank.
4. Impose on half Of I per cent. per an
mum. payable s=mi-annual.y, upon the
average amount Of notes i'm circulation 10
detray the expenses Of printing notes, Off
cial supervision, cancellation, etc.
3. No national bank note 10 be OF ,ess
denomination than $40, and al. notes Of the
same denomination 20 be uniform in de-
sign, but banks desiring to redeem their
notes in gold may have them made pay
abe in that coin, the secretary Of the treas
ury to have authority to prepare and keep
on hand ready for issue upon application
a reserve of blank national bank notes for
each banking association having circula-
ton.
6. Require each national bank associa-
ton to redeem it's nOtes at It's own office
or at its own Official agencies, to be desig-
mated by it.
Z. To provide a safety fund for the i'm
mediate redemption of the circulating notes
Of failed banks, impose a tax upon the
average circulation of each bank until the
fund amounts to 3 per cent. Of the tota-
circulation outstanding. Require each new
bank and each bank taking out additional.
circulation. 10 deposit its proper proper
ton Of this fund before receiving notes.
When a bank fails It's guarantee fund, he'd
on deposit, shall be paid into the safety
fund and used n the redemption of It's
notes, and if this fund shall be impaired by
the redemption of the notes Of failed ma
tonal banks, and the immediate available
cash assets OF such banks are insufficient
to re-establlsh the fund, 1t shai. at once be
made good by pro rata assessments upon
the other banks, according to the amounts
Of their outstanding circulation, but there
shall be a first lien upon all the assets Of
failed banks 10 reimburse the contributing
banks. The safety fund may be invested
in outstanding United States bonds having
the longest time 70 run, the bonds and the
interest upon them to be held as part of
the fund, and sod when necessary td re-
deem notes of failed banks
8. Repeal the provisions of the reor-
ganlzation and extension act OF July u,
1882, imposing limitations upon the reduc-
ton and increase Of national bank cir
culation.
3. Repeal all provisions OF the law re-
quiring banks 10 keep a reserve on ac-
count OF deposits
10. The secretary of the treasury may.
in his discretion, use any surplus revenue
Of the United States In the redemption
and retirement OF United States legal ten
der notes, but such redemptions shall not
I'm the aggregate exceed an amount equal
to 20 per cent. of the additional circulation
taken out by the national and state banks
under the system herein proposed.
IL. Circulation notes issued by bank
ing corporate duly organized under the
laws Of any state. and which transaets