Evening star., 1895-01-04
Representative Coombs Has Pre-
pared a Financial Measure.
IT PROVIDES FOR A BOND ISSUE
The Interest to Be Two and One
Half Per Cent.
TO REDEEM U. S. NOTES

Representative Coombs Of Brooklyn has
prepared a financial plan, which he mas
submitted to Secretary Carlisle, and which
has been favorably commented upon by the
Secretary. 1t has not yet been introduced
into the House, the purpose OF Mr. Coomps
being not to antagonize the bill now before
the House, but to wait and see If it can be
gotten through. The bill provides that the
Secretary of the Treasury be authorized 10
issue and dispose at not less than par in
coin, or it's equivalent, bonds Of the United
States in such denominations as he may
prescribe, bearing interest at the rate OF
2 IL per cent, payable quarterly and re-
deemable at the pleasure Of the United
States twenty-five years after this date;
provided that the total issue of bonds
under the provisions Of this act shall not
exceed the amount of United States notes
ard treasury notes Of the act of July IL,
1890, now outstanding. The principal and
interest Of the bonds herein authorized
shall be payable in coin of the present
standard value of the United States; and
both principal and interest shall be exempt
from federal taxation and all taxation by
CT under state local cr municipal author
ity.
Section 2. That the proceeds Of the bonds
herein authorized shall be applied to the
redemption of United States notes or
treasury notes of 1S90 or said bonds may
be exchanged at par for said notes, and the
United States notes and treasury notes OF
1890 redeemed or exchanged as herein pro-
>vided shall be Cancelled and retired; pro-
vided that the amount Of said bonds out
standing shall at no time be more than
SO, 600, 900 in excess of the amount OF
United States notes and treasury notes OF
1880 Cancelled and retired.
Section ). That any national bank or
any bank duly chartered and doing business
in accordance with the laws of any state
may deposit United States interest-bearng
bonds with the treasurer of the United
States to amount not exceeding 80 per
cent of its capital already paid in, and shall
be entitled to receive from the controller
of the currency in exchange for the bonds
SO deposited and to issue circulating notes
TO an amount equal to the par value OF
such bonds, and the form of such notes
and the regulations for their issue shall
be prescribed by the controller Of the cur
rency, subject to the approval of the Sec
retary of the Treasury; provided that none
of said notes shall be of & smaller denom-
nation than $40, and provided further that
after the passage of this act it shall be
unlawful for the controller of the currency
to deliver to any bank and for any bank to
issue bank notes of less denomination than
SO.
Section 4. That from and after the pass
age of this act the issue of the currency
certificates authorized by the act of June
S. 1872. shall be discontinued and such GER
tifcateS now outstanding shall be redeemed,
Cancelled and retired as rapidly as possible.
Section 5. That the amount of silver GER
tifcateS in circulation shall hereafter at no
time exceed the sum of $i5l000, 600; and the
Secretary of the Treasury is hereby author
lied and directed to coin from time to time
such amounts of standard silver dollars as
may be necessary to maintain a free re-
serve of standard silver dollars of the
amount of S5,o0ooo0. provided that here
after no silver certificates shall be issued OF
larger denomination than s..
Section &. That the controller of the cur
rency be authorized to issue to any bank
ayng United States bonds on deposit with
the treasurer of the United States in ac-
ccrdance with this act bank notes to be
known as emergency circulation to an
amount not exceeding 30 per cent above the
par value of the bonds of such banks SO
deposited: provided that interest at the
rate of 212 per cent per annum upon the
amount of such emergency circulation snail
be charged to each bank receiving them
and so collected quarterly by the proper
officer OF the Treasury Department, the
amount so collected to be accounted tor
vided, further. that the emergency circula-
ton hereby authorized shall constitute a
first lien upon the assets of the bank lsSu-
ing such circulation, not including III Such
assets the bonds deposited with the treas
urer of the United States by such banks;
and before issuing such emergency ciTcula-
tiOn to any nGnk the CCutFoiiSI VI thc GU
rency shall be satisfied that under the laws
of the state wherein such bank is located
such emergency circulation may lawfully
constitute a first lien.
Section I. That the bank notes authorized
by this act and the rational bank notes
now outstanding shall be redeemed by the
banks of issue, as provided by existing law,
except that redemption shall hereafter be
made in cCn instead of lawful money.
Section s. Taat the bank notes authorized
by this act shall be exempt from the tax
of 10 per cent imposed by the act Of Feb
ruary s. 1873; that all bank notes author
lied by the laws of the United States shall
be receivable in payment of ell debts, both
public and private; that when surrendered
by the bank of issue to be retired, they may
be reissued to such banks at any time, and
that the federal tax on circulation be re-
duced to one-half of 1 FER cent per annum
which tax shall be paid by all banks is
suing notes under this act or other laws
of the United States.
Section 8. That all acts and parts of acts
inconsistent with the provisions of this act
be repealed.