The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1894-12-12

IN b proposed 70 rePsal al laws provru.
ing for the deposit Of United States bonds
as security for circulation, to permit ha-
tional banks to iesuc circulating notes mob
ssSds'qps csd am sada a ssps nSsyS5 q h
guarantee fund, In Unfted States icsai
tender notes, Including treasury notes Of
1880, sum equal in amount 70
90 per cent Of the notss they desire 70 IL
timos, but Whenever any bank retlres amy
Of Its guarantee fund shall BE returned 70
It; TO permit the secretary OF the treasury
TO prepare snd keep on haud roady
sircusson sGs 'ssSs 'sSs desired a. sFia'' sps mn ,D
tioual bank notes for cach bank
visions Of the present law imposing linita
tions and restrictioris upon banks desiring
70 reduce q. increase, their circulation
With the limit q V percent per cent G Of it capital u
be quickly made as emergencies arise.
n addition to the 8 iarsntee fund 70
CURED. 1t Is proposed to provide safety
fund for the Immediate redemption of the
posing a small annual tax, say one e-balf Of
per cent, upon tho average circulation OF
each bank until tho fund amounts to peY
cent OF tho total circulation outstanding.
When bank falls It's guarantee fund is
to be paid into this safety fund and its
stance from such safety fund thus aug.
mentcd aud impairment Of such fund
caused thereby to IL made good from
the immediately available cash Assets OF
said bank, and II these should be insuia.
ciens such Impairment to bs made good by
pro rata assessment among the banks,
their contributions constituting q flrst Hen
upon the asscts Of tho failed bank in favos
Of the contributing banks.
AS q further security II Is contemplated
that the existing provision fixing the indi'
eidual liability Of stockholders. is to be re
tainod, aud tha banks indebtedness, on NC,
count Of its circulating notes, ID TO bH
made first lien on all lts assets.
For tho purpose OF meeting the expense
Of printing notes official supervision, can.
collation. and other like charges there shall
be imposed tax Of say one.half Of | poi
cent per annurn upon tile average amount
of notes In circulation.
&; It Is further provided that there shall bs
no national bank notes issued OF q less de
nomination than $40. That eaoh nationu,
redeem or retire it's notes In the first In
stance ct its own offlce or at agencies to b.
designated by 1t. 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
where it is shown to the satisfaction Of tht
secretary of the treasury and comptrollel
Of the currency by banks claiming such OK
emption that they have not had ont
standing thelr circulating notes ex
ceeding 75 per cent of their paid VI
and unlmpalred capital; that theii
stockholders are individually Liable for til,
redemption of their circulating notes Il
che fun extent Of their ownership of stock
that the liability Of said banks upon thoi
circulating notes constitutes under thei
state law u first lien upon their assets
that such banks have kept and mnint.inet
| guarantee fund In United States legn
tender notes, including treasury notes O
| 1890 equal to 30 per cent Of their outstand
ing circulating notes, and that such bank!
| haye promptly redeemed their circulating
| notes when presented at their principal oI
branch offices.
| 1t is quite likely that thia scheme ma,
| be usefully amendnd In some Of its do
| tails but am satisfied it furnishes basi.
for y very great improvement In our pres
ent banking aud currency syptem.
| conclude this communication fully ap
| precinting that the responsibility for al
legislation affecting the lSople of th.
United States ests upon their represonta
tives in the couaress, aud assuring then
| that whcther in accortiarce with recpm
mendations have made or not shall b.
glad to cooperate in perfecting amy legie
lation that tends to the prosperity aud
| GROVER CLEVELAND
Executive Nnnsion, Deo. 8, lS9A