The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-12-08
THE MORNING NEWS: WEDNESDAY, DECEMBER s. 1897.

pleasure of the government. such bonds
TO bear interest at the rate of 2la per cent.
per annum, payable, principal and inter-
est, in gold coin; and that the, Secretary
of the Treasury be authorized to issue
such bonds and receive i'm payment there,
for, with an equitable allowance for the
dlterence in Interest," any part or all of
che outstanding loans of the United states
which mature by their terms of payment
in the years 1891 1897 ANA 1925"
An enlarged issue of bank notes thus
contemplated would require "a number of
amendments to the present national bank
act The changes recommended by Sec
rotary Gage are as follows
First Permit national banks to be or
ganized with a minimum capital of $4,000
an any place having a population of 1900
inhabitants or less.
second. Reduce the rate of taxation on
circulating notes secured by deposit of
bonds to one-half of per cent per annum
Third. Permit banks now organized or
hereafter organized to issue circulating
notes to the par value OF the refundng
bonds hereinbeforc suggested. when de-
posted by them with the treasurer of the
United States; and further. allow such
banks as shall AVIAN themselves Of The on
portunity to deposit as security with the
treasury of the United States grcenhaclls.
treasury notes, or silver certificates 10 a
UEdlDSt
there shall at once be issued to them by
the controller of the currency
national bank notes to an equal
amount, il beng further provided that
from time to time at his convenience The
Secretary of the Treasury shall substitute
Tor the greenbacks, treasury notes, and sill
Yer ceruhcateS so deposited to secure cir
culation, bonds of the same class and
character as the refunding bonds first
named to the amount of 5000 eco 900 such
bonds to be chargeable to said banks ana
by them accounted for at such price mot
less than paD as the market quotations
may indicate to be their fair market value
During the period of time Intervening be-
tween the deposit of greenbacks, treasury
notes, and silver certificates and the sub
stitutiOn of the bonds by the Secretary of
the Treasury the circulating notes spe-
officially issued therefor shall he exempt
from taxation. Upon such substitution of
bonds the funds released thereby shall at
once be transferred by the Secretary of
the Treasury to the issue and redemption
division
Fourth. After said banks have deposit
ed such bonds greenbacks, treasury notes
or silver certificates to the amount of 80
cent. of their capital they shall be per,
mitted to issue bank notes in addition to
the 50 per cent thus provided, to me ex-
tent of % per cent. of such deposit, which
said % per cent. may be unsecured by any
direct pledge of security, but issued against
the assets of The bank.
"Fiftha Extend the guaranty of pay
ment by the government to all circulating
notes of the bank, whether issued against
deposited security or against assets.
Sixth. To secure the government
against loss, if any, attaching to its guar
anty, tax of per cent. per annum on
unsecured circulation shall be levied TO
create a safety fund, which fund shall be
invested by the Secretary of the Treasury
and the controller of the currency in gov
eminent bonds. In addition TO such funds
the government shall be further protected
by having first lien upon all assets in
case of failure of the issuing bank
Seventh. All notes shall be redeemed
In the city of New York at the sub-treas-
ury, and at such other sub trea suries as
may be designated by the controller of the
currency and made from a redemption
fund Of 10 per cent, to be provided and
maintained by the banks.
Eighth. Restrict the issue of national
bank notes to the denomination of $40 and
upward.