The age-herald., 1897-12-17
SECRETARY GAGE S
 FINANCIAL BILL
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arising from It's guaranty to pay ana re- deem such additional circulating notes it shall be the duty of the comptroller of the currency to levy upon and collect ssom every national banking association issuing such unsecured circulation tax at the rate of 2 per cent. per annum to be paid to the treasurer of the United States in equal semi-annual payments in January and July of each year, and when so col lected it shall constitute safety fund out of which the United States shall be re- imbursed for redemption of said unsecured circulation it may make as herein provid- ed. The safety fund thus created shall be invested by the secretary of the treas ury in such government bonds as he may deem advisable. Said tax of per cent. per annum shall be, in addition to the tax of one-half of one per cent. per annum on circulating notes as hereinafter author ized.
 Deposit of Banks
 Section g. That each national banking association shall deposit and maintain in the treasury of the United States sum of lawful money equal to 10 per cent Of it's aggregate circulation, said sum to be in lieu of the 5 per cent redemption fund now required by section 3 of the act approved June 20, 1874, to be maintained, and to be subject to all the provisions of existing law for such redemption fund not incon- sistent with this act; and in consideration of deposits of bonds, United States notes, treasury notes of 1890 and silver certificates and the tax of per cent on unsecured circulating notes of national banking asso- citations, and for the deposit of lawful money provided in this section, the faith of the United States is hereby pledged to the redemption in lawful money of the United States of all the circulating notes of said national banking associations
 Destroy Small Notes
 Section g. That the comptroller of the currency shall not issue to any national banking association on and after the date when this act shall take effect of less de- nomination than s10, and whenever circu- lating notes of less denomination than $10 shall be redeemed or received into the treasury of the United States, they shall be cancelled and destroyed and other notes of lawful denomination shall be issued in their place.
 Redeem Bank Notes ts
 Section 10.-That on and after the date when this act shall take effect the circu- lating notes of the national banking asso- citations shall be redeemed at the office of the United States assistant treasurer in the city of New York and at such other sub treasury offices as may be designated by the comptroller of the currency with the approval of the secretary of the treasury; and the circulating notes of each national banking association so redeemed shall be charged to the ten per cent redemption fund of such associations under such reg ulations as may be prescribed by the comp- trpiler' of the currency with the approval of the secretary of the treasury.
 National Bank Tax
 Section 1.-That in lieu of all existing taxes, every national banking association issuing notes shall pay to the treasurer of the United States in the months of January and July of each year a tax of one-fourth of one per cent for each half year upon the average amount of its notes in circulation.
 Provided, however, that during all the period of time intervening between the de- posit of United States notes, treasury notes and silver certificates and the sub stitute of bonds by the secretary of the treasury as in this act provided, the cir culating notes especially issued therefore and secured by said United States notes, treasury notes or silver certificates shall be exempt from taxation under the pro- visions of this act.
 Amend a Statute
 Section 12. Section 5,13S of the revised statutes shall be amended to read as fol- lows: No association shall be organized with less capital than $100,000, except that banks with capital of not less than $5O,- 900 may, with the approval of the secretary of the treasury, be organized in any place. the population of which does not exceed G. 900 inhabitants; and except that banks with a capital of not less than $25 900 may, with the approval of the secretary of the treas ury, be organized in any place the popu- lation of which does not exceed 2,000 No organization shall be authorized in a city the population of which exceeds 50,- 900 persons with less capital than $200, ,0o0.
 This act shall take effect on and after the - day of -, 1S9 and all acts and parts of acts inconsistent with the provis- ions of this act are hereby repealed.
 The discusson brought from Mir Gage another brief statement of the demand obligations of the United States. He said he spoke from the experience of practical banker in saying that all the demands against the government would not be pre- sented at one time. It was tenet of bank ing that all demands did not come at once If they did the banks would not last long. For that reason it was necessary only to provide against a small percentage of the demand.
 Mir Jordan, the sub-treasurer at New York, had said to him that all the trouble fin redemption was caused by the last $200,- 900 900 of demands. The secretary concurred in this view. If therefore $2OO, 100000 was set aside in redemption fund it would to a large extent relieve the demand.
 MT. NewIsnds Talks
 MT Newlands, of Nevada, argued that 8 contraction of the currency would occur under the secretary's bill if the banks sur rendered their notes and took the refund ing bonds which were proposed as basis for the notes.
 MT. Gage conceded that this might occur, ss