New-York tribune., 1895-12-28
CONGRESSMAN SMITHS BANKING BILL

CONGRESSMAN SMITHS BANKING BILL
IT IS SAID TO HAVE THE APPROVAL OF SENATOR
SHERMAN CHAIRMAN DINGIEY AND OTHERS.
Washington Dec 27-The William Alden Smith
hill 10 relieve the Treasury from the menace no"
threatening Il by the presentation or tnted H'a'e
notes. called greenbacks and Treasury notes, was
introduced by the Michigan member In the House
to-day The measure submitted by Mr. smith
to Senator John Sherman. who pronounced II
meritorious In anording relief. to the Treasury re-
serve. The plan was also submitted TO the lead-
ing members Of the House. including Chairman
Dingey Chairman Walker and others, by whom
the proposition generally commended The
bill amends Section 5l9 Of the Revised statutes OF
the United States AMI provides that every National
banking association in either of the following
cities Albany, Baltimore. Boston. Cincinnati Chi
cago. Cleveland Detroit. Louisville MILWAUKEE,
New-Orleans. New-York, Philadelphia, Pittsburg.
ST Louis, san Francisco and Washington shall at
all times have hand in United States notes and
Treasury notes an in full to at least 3 per
cent of the aggregate amount of its notes In cir
culatIon and of its deposits. and every other asso
citation (bankng) shall at all times have on hand
in United States notes and Treasury notes an
amount equal to least Is per cent of the aggre
gate amount OF its notes in circulation and OF It's
deposits.
Whenever the United States notes and Treasury
notes OF any association any OF the cities named
shall be below the amount Of 25 per cent Of the
circu.a tion and deposits, ana whenever the hNed
States notes and Treasury notes Of any other asso-
citation (bankng) shall be below IL per cent OF It's
circulation and deposits. such association shall not
increase It's liabilities by making any new loans or
discounts otherwise than by discounting or pur-
chasing bills OF exchange. payable at sight. nor
make any dividends OF its profits until the required
proportion between the aggregate amount or It's
outstanding notes OF circulation and deposits and
its United States notes and Treasury notes has
been restored. and the Controller OF the Currency
may inform any association whose United states
notes and Treasury notes constituting IN" legal
reserve shall be below the amount above required
TO be kept on hand make good such reserves. and
II such association shall fail for thirty days there
after so as to make good its reserve In United
States notes and Treasury notes the Controller
may with the concurrence OF the Secretary Of the
Treasury. appoint receiver 10 wind up the busi-
ness of the banking association.
According to the last report OF the Controller OF
the Currency there $l15 l94 $50 Il Of individual
deposits United States deposits and deposits OF
United States dsbursng officers in the National
banks Of the United States. Twenty-Five per cent,
the legal reserve required in cities and 10
per cent required in nonreserve cities, would upon
The adoption of the act. Immediately break the
endless chain which there is 50 much com
plaint. and these notes would be pat beyond the
reach IF Spectators and would release t62 2o q
in gold now tied up In bank vaults as a part of their
l.ya