Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-10-13
A NEW BANKING PLAN.
Scheme Advocated by the American
Association.

A NEW BANKING PLAN.
Scheme Advocated by the American
Association.
The most important subject considered
by the bankers convention at Baltimore
has been the currency plan of the Balti-
more bankers. presented by Mr.. c. G.
Homer, president of the Second National
Bank of that city.
At the conclusion of his address on Thurs
day, Mr.. Hepburn moved that the prin-
ciples underlying the proposed plan be in
dorsed and adopted, and that legislation be
recommended along the lines embodied in
1t. The resolution was adopted
committee of nine was appointed TO lay
the plan before Congress. The committee
comprises Charles q. Homer of Baltimore
Horace White of New York. Joseph c..
Hendricks of New York. Skipwith Wilmer
of Baltimore, K. J. Lowry of Atlanta, Ca,
A. p. Heburn of New York. Charles Par
sons OF ST. Louis, q. l.. Christian OF Ricf-
mond, Va, ard w. I. Baker of Chicago.
The main points of the plan are as fol-
lows:
The provision of the rational banking act
requiring the deposit of bonds to secure
circulating notes hereafter issued shall be
repealed.
Allow the banks to issue circulating notes
to the amount 30 per cent of their paid
up unimpaired capital, subject to a tax of
OHc-iidll VI per Centunl per 9nnum GpOn
the average amount of circulation outstand-
Ing for the year. and an additional circula-
ton of % per Centum of the paid-up, I'M
impaired capital, subject both to the tax of
one-half of per centum per annum and to
an additional heavy tax per annum upon
the average amount of such circulation
outstanding for the year. said additional Is
per centum to be known as emergency
circulation"
The tax of ore-half Of 1 per centum per
annum upon the average amount of circu-
lation outstanding shall be paid to the
treasurer OF the United States as a means
or revenue. out of which the expenses of
the office of the controller of the currency
the printing or circulating notes, etc, shall
be betrayed.
The excess over one-half of 1 Der centum
OF the TAX imposed upon the emergency
circulation" shall be paid into the guar
antee fund referred to In section g.
The banks issuing circulation shall de-
post and maintain with the treasurer of
the United States a Redemption fund,
equal to per centum of their average out
standing circulation, as provided for under
the existing law,
The redemption of the notes of all banks.
solvent or insoivent. to be made as provided
for by the existing law.
A Guarantee Fund.
Create guarantee fund" through the
deposit by each bank Of per centum upon
the amount Of circulation received the first
year. Thereafter impose a tax of one-half
Va l. PCT upon tne average amount
OF outstanding circulation, the same TO be
paid Into this fund until 1t shall equal :
per centum of the entire circulation ont
standing, when the collection of such tax
shall be suspended. to be resumed whenever
the controller OF the currency shall deem
ii necessary
The notes of insolvent banks shall he re-
deemed by the treasurer OF the United
states out of the guarantee fund, If il shall
be sufficient, and If not sufficient then out
of any money in the treasury the same TO
be reimbursed to the treasury out of the
guarantee fund.-, when replenished either
from the assets of the failed bank or from
the tax aforesaid.
National banking associations organized
after this plan shall have gone into opera-
ton may receive circulation from the con-
troller OF the currency upon paying into the
guarantee fund" a sum bearing the ratio
to the circulation applied for and allowed
that the guarantee fund bears to the total
circulation outstanding and to he subject
to the tax Of one-half of l per centum per
annum, as called for by the treasurer of the
United States for the creation and mainten-
ance of this fund.
No association or individual shall have
any claim upon any part Of the money In
said guarantee fund except for the re-
demption OF the circulating notes of any in
solvent national banking association. Any
surplus or residue Of said guarantee fund.-
which may be hereafter ascertained or de-
termined by law shall inure to the benefit
of the United States.
4hS SHdll nave a prior lien
upon the assets OF each failed bank and
upon the liability OF shareholders for the
purpose of restoring the amount withdrawn
from the guarantee fund" for the redemp-
ever. the amount OF the failed banks out
standing circulation after deducting the
sum to Its credit in the redemption fund"
section ~ already In the hands of the
treasurer of the United States.
Circulation can be retired by bank at
any time upon depositing with the treasurer
of the United States lawful money IN
drawn. and Immediately upon such deposit
the tax Indicated in sections 2, 3 and shall
cease upon the circulation so retired.
In the event of the winding up of the
business of a bank by reason Of Insolvency
or otherwise, the treasurer of the United
States, with the concurrence of the con-
trol1er of the currency may, on the anpli-
cation OF the directors or of the liquidator,
receiver, assignee or other proper official
ana upon being satisfied that proper ar.
ranSements have been made for the nav
inent OF the notes Of the bank and any tax
que thereon, pay over to such directors,
hquidator. receiver, assignee or other proper
official the amount at the credit of the bank
ton 4.
New Officers.
The following officers were chosen: Presi-
dent. J. J. oden Of Chicago; first vice pres,.
dent, j. Q. Nicely. cashier Merchants Ma
tional Bank of Chicago; executive council
Myron T. Herrick, Cleveland: Herman
JUST, Nashville; Thomas T. Bealle. Bos-
ton; Henry w. Yates. Omaha; ii. w.
wheeler, Seattle; e. Edward Simmons
New York; w. O. Cornwell, Buffalo: Vice
presidents-one from each state and terri
tory. Tho one from the District Is George
c. Henning. ''se
Mr.. Odell briefly thanked the convention
and declared 1t adjourned.
Engineer Corps.
The recent deaths Of Major Thomas rur-
tie and Cantain p NJ prico ~ A. $780,