The times. [volume] (Richmond, Va.) 1890-1903, 1894-12-05
VOL S-NEN SERIES NO 227.

most .arit@ du ~ It's patrons. VIII uf-
| doubtedy keep on hand reasoo,nap,,, de-
! serve to meet not only All oIu'tf"r sor such
emeTgencies as are liable to occur III
| the community where il is located, pus ~ ~
! ought not TO be prohibited by law ,'.n IroIn
| using such reserve for tne HnbS" '1'
| a was designed 10 accomplish, cacre-
! Among other provisions in the Secief
! tary's plan is that no bank n0te Oo VI
less denomination than ten doIIarS'
FURTHER TARIFF REFoEM.
The subject OF revenue reform Is
given attention in the report anu 'F
! this topic Mr. Carlisle writes. o,, .bo
The ,5, late caaGossd@Tabe aos wn part Of the most
| ironortaut raw materials useu III OuI
n,arnufacturies left iron, and lead ores
| and hituminous coal, together Win stt-
| eral other articles of less consequence,
! etIi 1nfiable. thus not only failing TO
| nTesent a consistent system OF revenue
! reform, but leaving some OF our nlOsl
| voluabie industries at great Disadvantage
! az compared with their rivals differently
! located There are other defects, con-
| sisting Of ambiguous phraseology IN some
Of the paragraphs and Inconsistent ana
excessive rates of duty In some OF the
schedules. correction Of which would
be in harmony with the policy or progress
sive reform upon the basis OF equal
Justice to producers and consumers, and
would not affect the revenue to any, con
siderable extent. Advantage should be
promptly taken OF every opportunity to
remove all these Objectionable features
from the act I'm order that our legislation
may be made TO conform as speedily as
possible to pledges given the people and
to the demands OF public sentiment on
this subject.
OUTLINES OF THE PLAN.
Following are the outlines of Mr.. Car
isles plan Of currency reform;
]. Repeal the laws requiring or author
izing the deposit Of United States bonds
as security for circulation.
2. Permit national banks to issue notes
TO the amount not exceeding SeFenty-HNe
per cent. OF their paid up and unimpair-
cd capital, but require each bank before
receiving notes to deposit a guarantee
| fund consisting of United states legal
| tender notes, including Treasury notes Oh
| 1890 II the amount of thirty per cent.
upon the circulating, noes applied for
This percentage of deposits upon the CIR
| culating notes outsto nding to be main
| tained at all times. and whenever bank
| retires its circulation in whole or In part
| it's guarantee fund 10 be returned TO II
| in proportion TO the amount of notes re-
! g. Retain the provisions Of the law
| making stockholders individually liable
| and provide that the circulating notes
shall constitute irSt lien upon lhe dS-
sets Of the bank.
a Impose a tax of half of one per
| cent per annum, payable seml-annuallN
| upon the average amount OF notes II.
|
printing notes, official supervision can
| collation.. etc Ice
| denomination than $40, and all notes Qu
| tbia same denomination to be uniform III
design: but banks desiring 70 reuetiH
| their notes in gold may have thein llauS
| payable In that coin. The secretary ol
| The Treasury to have authority 10 pIe
| mare and keep on hand ready Tor lssu"
iIpon application a reserve or plank ia ia
| tional bank notes Tor each Dt.Iih'"s "''
citation having circulation. ,o,i, 70 re-
| 6 Require each national BANK 10 ie,
! desm its notes at its own once OF az
| its own Office and agencies 10 DE ue''s
| mated by 1t. ..,. r,rd for the
| immediate redemption of the circulathe
| note Of failed bank, impose "a .aN oveTaee
per centum per annum upon a. tnV 80 f,nd
circulation Of eacn bank uh'li w tntai
| or,ounts TO five per centum OF the to to'1i
| circulation of outstanding, require "a
! new bank and each bank taking ouI au-
| JitforoI circulation TO deposit lts PioPtI
| ,rn,nTtion of this fund before recelNins
| Hotee When a bank fails, its guaIaltSe
| fund held on deposit TO DE pau dilut,{0r me- Of
| safety fund and used in the reHeImiiPtt ~ In
| its notes and if this fund snaH pe Hli
| 'oirnd nv the redemption OF the notes "a
! JAILED banks. and the immediately 90 a' On, IN
| able cash assets OF Sucn p9Ilh5 a. sho II
| sufficient to re-eStaDllsn lne lullu' ., - a.
! once he made good by pro I"." a.
| seesments upon the other banks, aCnO3ioo
| inc 10 the amounts OF lheA W Ou -, iiar
| circulation, but thtIe SiiOHH| fouad hank
| mon an the assets OF tle ldI.CI dI..CIi,,,t,,r
| upJJ,.ants Ia reimburse the contriputinS
| hanks. The safety tund nlaE p honds
| eJ I'm outstanding Unlteu ot"'th -. Ennds
| Sad,,ino, the longest time to run me p9ius M
| ia dsit,b interest upon them 10 be helu ~
| nnTt of the fund and so Gown, he0e7S"''
! :" redeem notes Of failed BANKS; o,,o,t.
| NX Kepeal the provisions OF 5Ne S95 05 In
| -, md The act Of July ~ lo9-' IN IN
nosing the limitations upon the ti"n
and increase OF natlQQi,aI D",F ~ the law re-
| Quiring banks 70 hVNP
| c91n coz Tbe m Secretary Of the Treasury may
in his discretion, use any IN Sfh thp redemp-
| ~ IN the retirement in lhe Chlleu
| states legal tender note, DIo, DuI SUI -, dNy-
| demntions shall not In the aEsIesaru1t Of
! ccnd an amount equal TO ~ per cent oi
! ~ add;tional circulation taken OUT pS
nationai and State banks under the s!S-
| tenn herein proposed. ..., -, ho~l,-
! III Circulating notes issued py a panh-
| - ~ oornora ton duly organized under tne
| iaSSys iaS of any State, and which trahsact,S9
! ro other than a banking business, shali
| 6e evemDt from taxation under the iaMS
| DS - United States, when II Is SHOWN
! V tbo Satisfaction of the secretary OF
tba treasury and the Comptroller OF Cur
| rency- -, 10, o, No time had
| o,i;standinp its circulating notes IN ek,
| cess of 75 per centum OF lts Pdld-u "NN
unimpared capital ,,.... ono ,rdividual-
|
| l., Uabie for the redemption Of IT'S citcu-
| lating notes 10 the ldll eN'o"' Vi
! ownership OF stock. .,,,o. ,otas consti-
| III That the circulatng NOUS ~ % g
| tute by law a nrSt zen uPOll al '
| sets Of the bank. =, .t,o, l,a,+
| IL THAT the bank mas at all times kepi
| a guarantee fund in United states ss lesu.
! tender notes. including Treasury hotes
! Of 1900 equal to 30 per centum OF is ou'-
| standing circulating notes: ana, a..
| " That IL has promptly redeemed lts
notes on demand at its principal olhCss;
| a., I'm one or more of its branch oihces, il
| IL has branches. ..,, ,,,a,,
! under proper rules and regulations 10 pe
| established by him, permit state pahhs
| 10 procure and use in the preparation oI
| tbai. notes the distinctive DaDer used IN
nrinting United States securities; but no
| State bank shall print or engraye Tvs
| notCs in simiitude OF a United States
| nota or certificate or national bank note
THF GUARANTEE FUND.
In the case of State banks the Secre-
| tarv saws that the guarantee fund VIII
| Constitute a permanent reserve which, 10
gether with the individual nabllty 0i
| stockholders and the trst lien upon an
| the assets, will make its circulating notes
| entirely safe. In his opinion the lm-
| nosition OF a tax by the Government upon
| state hanks Of issue is an untusufiable,
! II not an unconsttutional, interference
with the authority Of States; but as IT'S
validity has been judicially sustained, and
| its repeal seems impracticaDle az thls
rs.lt 20, OnT, nj n ne